Get the Right Financing & Cash Flow
You need to know all of your costs, including estimating repairs and other maintenance costs. But, the mortgage is going to be your largest cash outlay, so it is your most important cost consideration. You’ll need to put 20% down or more in most cases. For a rental unit you may also pay a slightly higher mortgage interest rate, a great credit history helps in this regard.
Get a firm handle on all of your costs, then see what your mortgage payment with taxes and insurance escrowed will be. Let’s use an example of a $150,000 home with a $32,500 down payment and closing costs. If you can manage to clear even $250/month over cash out of pocket, your return on the actual cash invested is going to be around 9%.
Lock in Equity at the Closing Table
NEVER buy at retail market value. If you can’t get the home at a 10-20% discount to its current market value, don’t do the deal. You want to leave the closing table with that equity as either future profit or a cushion should you have to sell before your initially planned liquidation date.
If you’re going to work with a wholesaler who you may meet at a local investment club, be clear that you’ll want to see their valuation calcs and you’ll check them with your own. You give them your requirement. If it’s 15% below market value, then they will know what they have to deliver.
Dijual Unit LRT City Ciracas Tower Azure lantai 27 No. Unit 49 2 BR-2
Jl. Pengantin Ali , Jakarta Timur, DKI Jakarta
Dijual Unit LRT City Ciracas Tower Azure lantai 27 No Unit 49 2 BR 2 Hai Elartizen Miliki hunian dengan konsep TOD Terbesar di Jak...
Source : huffpost
