Help in numbers. Mortgage for foreigner. TAMPLA, FL

[Adam Janko]

Dear Investors,

I am investing and living in Budapest, Hungary. I am thinking about to diversify my portfolio. Finally I found a company who could help me to invest in US market with US Bank financing as a foreigner.

The broker works in the Florida market and after I reviewed my calculation something does not sound right:

These are the requirements for mortgage as a European citizen:

- Mortgage value has to be minimum 100,000 USD (they claims the banks will not approve less, is it possible ?)

- 30% down payment needs to be on a US bank account + 6 month expense in advance.

- Proof of income which has to come from the employer or accountant company. Should be minimum 3000 USD/month to be approved.

- 30 years, interested around 4%. Can be prepaid anytime without penalty.

And here are the numbers for a single family house in Tampa, 3 bedroom, 2 bathrooms:

Purchase price: 140,000 USD

Down payment : 40,000 USD

Mortgage: 100,000 USD

Closing fees: 7,000 USD

Rental income: 1350/month

Maintenance + tax: 450/ month

Mortgage: 600/ month

Property management : 112.5 /month

Cashflow: 187.5 USD/ Month => 2250 USD / Year

Cash on Cash Return: 4.78% (2,250/47,000)

Considering that we are using levarage here I would expect a higher return. Also compering to Hungarian market it looks really not attractive.

Could you help me if I missed something ? It would be great to discuss with people more experience on this market.

Many thanks!