Think-Realty-Magazine-MarchApril-2016

THE REAL ESTATE RICHES ARE STILL IN THE NICHES – WITH THE RIGHT PROCESSES IN PLACE

How Savvy Investors Can Purchase $30,000 to $60,000 Properties Using A Systematic Approach

TRADITIONAL

SELF MANAGED

PROPERTY MANAGER

*ALL CASH PURCHASE PRICE CLOSING COSTS REHAB COSTS TOTAL

$30,000.00 $2,500.00 $10,000.00 $42,500.00

$30,000.00 $2,500.00 $15,000.00 $47,500.00

$30,000.00 $2,500.00 $15,000.00 $47,500.00

SQUARE FOOTAGE # BEDS (DOORS) # BATHS

1200 2 1

1200 4 1

1200 4 1

MONTHLY INCOME

TRADITIONAL

SELF MANAGED

PROPERTY MANAGER

$600.00 $60.00 $540.00

$2,080.00 $208.00 $1,872.00

$2,080.00 $208.00 $1,872.00

GROSS RENT LESS VACANCY NET RENT

EXPENSES CAPEX RESERVES TAXES INSURANCE MANAGEMENT UTILITIES REPAIR & MAINTENANCE TOTAL EXPENSES

$520.00 $67.60 $62.40

$520.00 $67.60 $62.40 $0.00

$150.00 $66.00 $60.00 $60.00 $0.00 $60.00 $396.00

$312.00 $228.80 $208.00 $1,398.80

$228.80 $208.00 $1,086.80

MONTHLY NET CASH FLOW YEARLY NET CASH FLOW

$144.00 $1,728.00

$785.20 $9,422.00

$401.20 $4,814.40

CCR% (Cash on Cash Return) Monthly Gross Rent Per Door Yearly Net Cash Flow Per Door

4.1% $300.00 $864.00

19.8% $520.00 $2,355.60

10.1% $520.00 $1,203.60

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