Thursday, August 18, 2011

Great Investment Deal



I think that now may be the best time ever to jump into a Real Estate investment home than right now. Interest rates are extremely low accompany that with low home prices and you have a got a steady long term investment when purchase a rental home in this market. For instance you can get a investment loan on this house with 25% down at 5.125% interest rate, which would put your principle and interest payment at $265.44 a month. My estimates of the tax and insurance payment would be an extra $97.00 a month. The house is currently rented with a long term tenet who is paying $750.00 a month. So so here is the simple math.

Money Out of Pocket:
$16,250 Down Payment
$1,900 Closing Cost and Prepaids (Estimated)
= $18,200 out of pocket cost.

Monthly Financials:
$362. 44 Monthly Payment
$750.00 Rent
= $387.55 Monthly Profit

If you want additional information on the home click here.

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