Purchased house in very desirable city. However, the house was the wierd house on the block. Two story 5 bed 2 baths 2500 sq ft amongst single story 3 bed 2 baths 1200 sq ft. My neighborhood is older and they now have newer developments but once a house comes on the market here it sells the same week. Except for ours! We got military orders.

We owe $345K spent $40K and we dropped down to $365K after 2 months with only one bite. I am thinking about not give our hard earned money away and renting it. With renters, attempt to HELOC or equity loan to pull $30K to reinvest in our new location with a duplex. We will not be able to expense out capex or maintenance due to max rent being 2100 with our expenses being 2070 (home equity loan expense included), but if we refinance at year 4-5 we will cash flow $222 before capex and maintenance expenses. We will hold the property for 10 years and attempt to sell at $365K again resulting in almost $60K profit.

See the numbers below (forgive the formatting), it it structured years 1,2,3,4,10 etc per section.

Analysis Over Time

Year 1 Year 2 Year 3 Year 4 Year 10 Year 20 Year 30

Total Annual Income $25,200 $25,704 $26,218 $26,742 $30,116 $36,712 $44,751

Total Annual Expenses $24,928 $25,035 $25,144 $25,256 $25,973 $27,376 $9,519

Total Annual Cashflow $272 $669 $1,074 $1,487 $4,143 $9,335 $35,233

Cash on Cash ROI 1.82% 4.46% 7.16% 9.91% 27.62% 62.24% 234.89%

Property Value $351,750 $353,509 $355,276 $357,053 $367,899 $386,713 $406,490

Equity -$10,966 -$1,676 $7,880 $17,709 $82,962 $220,635 $406,490

Loan Balance $362,716 $355,185 $347,397 $339,344 $284,937 $166,079 $0

Total Profit if Sold -$48,558 -$38,712 -$28,198 -$16,998 $65,615 $271,205 $602,476

Annualized Total Return 0% 0% 0% 0% 18% 16% 13%

0 Votes

9 Replies

Jump to Last Reply

Attempting to save $40k investment!

Most Popular Reply