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!
