How To Buy Investment Properties Made Easy
Donald Pope
2013-09-09
Views 47
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Buy One Rental Property VS. Buying 5 or 6 Properties Of The Same Age, Style, Neighborhood?
I live here in Colorado and I was asked this question not too long ago. Let me clarify; here in Colorado an average rental property would cost around $150,000 to $210,000. Blue collar neighborhood (C+ to B locations), nice mom and pop locations. The age of the properties will range from 1950 to 1970’s. The monthly rental income is around $1300 to $1500 depending on location and garage access. Expenses are around 20% to 25% and depending on Property Management, Insurance and Taxes, low because the tenants pay for their own utilities, but a basis for conversation. No mortgage applied assuming cash on cash values. One more assumption is that these properties are completely Rental ready, no fix up needed. The rental property would net on average $900 to $1100 monthly or $10,000 to $13,000 approx. yearly income. No need to take vacancy out in this example because it would average out approx. the same per city.
These same type and style, age, neighborhood properties are being sold in other major cities like Denver but for a BOAT LOAD LESS!!! These like for like houses are being sold for $25,000 to $35,000 completely rehabbed. The same Blue Collar Neighborhoods as above. But, these properties are renting for $600 to $700 per month on average. Using the same expense percentage above or 20% to 25% averages around $400 to $500 net income and $4,800 to $6,000 yearly Net Income. Now multiply that by the total number of houses you can buy using the same amount you used to buy just one property from the above example in Denver. Let’s in this example the low end of the purchase or $150,000 as described above, that means you can buy 5 properties compared to the one, multiple the Net Yearly Income of $4,800 to $6,000, the NEW yearly net income is $24,000 to $30,000. That’s over double nearly triple the income for the same dollar amount being invested.
http://invest1properties.com
Call us today: 1 (866) 450-5363
call us now at 1 (866) 450-5363
Buy One Rental Property VS. Buying 5 or 6 Properties Of The Same Age, Style, Neighborhood?
I live here in Colorado and I was asked this question not too long ago. Let me clarify; here in Colorado an average rental property would cost around $150,000 to $210,000. Blue collar neighborhood (C+ to B locations), nice mom and pop locations. The age of the properties will range from 1950 to 1970’s. The monthly rental income is around $1300 to $1500 depending on location and garage access. Expenses are around 20% to 25% and depending on Property Management, Insurance and Taxes, low because the tenants pay for their own utilities, but a basis for conversation. No mortgage applied assuming cash on cash values. One more assumption is that these properties are completely Rental ready, no fix up needed. The rental property would net on average $900 to $1100 monthly or $10,000 to $13,000 approx. yearly income. No need to take vacancy out in this example because it would average out approx. the same per city.
These same type and style, age, neighborhood properties are being sold in other major cities like Denver but for a BOAT LOAD LESS!!! These like for like houses are being sold for $25,000 to $35,000 completely rehabbed. The same Blue Collar Neighborhoods as above. But, these properties are renting for $600 to $700 per month on average. Using the same expense percentage above or 20% to 25% averages around $400 to $500 net income and $4,800 to $6,000 yearly Net Income. Now multiply that by the total number of houses you can buy using the same amount you used to buy just one property from the above example in Denver. Let’s in this example the low end of the purchase or $150,000 as described above, that means you can buy 5 properties compared to the one, multiple the Net Yearly Income of $4,800 to $6,000, the NEW yearly net income is $24,000 to $30,000. That’s over double nearly triple the income for the same dollar amount being invested.
http://invest1properties.com
Call us today: 1 (866) 450-5363
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