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All Forum Posts by: Ganesh Shetty

Ganesh Shetty has started 1 posts and replied 3 times.

Post: Help and advice needed on my first property

Ganesh ShettyPosted
  • Investor
  • Hamburg, Schleswig-Holstein
  • Posts 3
  • Votes 0
In other words The 2700€ is the net operating income. Gross income would be around 2700+ 200x3(the 3 units pay 200 each for property maintenance)= 3300€ Monthly payment to seller: 1900 Net income after mortgage: 2700-1900= 800€ Mit freundlichen Grüßen(with friendly greetings)

Post: Help and advice needed on my first property

Ganesh ShettyPosted
  • Investor
  • Hamburg, Schleswig-Holstein
  • Posts 3
  • Votes 0
Danke schön very much John:) The rent amount I mentioned is the net rent. In German it's called the "Kaltmiete"(cold rent). In addition, the renters pay something called "nebenkosten"(additional costs), this additional cost covers all insurances, property maintenance, lawn maintenance etc. they need to pay the electricity and heating charges separately: so total rent would be: Net rent(Kaltmiete)+Nebenkosten(additional costs)+ electricity/heating(paid by the renter directly depending on use) I.e 1450(net rent) + 200(addition rent or nebenkosten, which covers all maintenance)= 1650(Gross rent) So the figures I gave you does not include insurances etc: So the monthly payment I need to make the seller excludes maintenance etc, and hence 800€ is the amount remaining after everything is paid of. The only 2 things to be accounted for are: 1. Property management(25€/unit) 2. Vacancy(5-10%) Do you still think it's not as good a deal? Grüße(greetings) from germany:)

Post: Help and advice needed on my first property

Ganesh ShettyPosted
  • Investor
  • Hamburg, Schleswig-Holstein
  • Posts 3
  • Votes 0
Hi guys, I am from Germany. In the process of committing to my first deal. It's an owner financing/ rent to own. Situation: The owner is separating from his wife and hence wants to sell his home. They bought the home together in 2013. The Home: it's a beautiful large home from 2005 with 3 bedrooms and a large living room with a new in built kitchen, completely renovated to a very high standard with a swimming pool, sauna etc. in addition, the home has 2 apartments attached, both of which are rented out. The house is close to 2 important north German cities and one can commute to both cities with ease. Sale price: 570.000€(home in germany) Offer from the owner: The owner put this as on germanys equivalent of Craig's list. The entire triplex is for sale with the following numbers: Sale price: 570.000€ Monthly rent: 1450€(net) Monthly repayment on rent to own: 450€(negotiable) Total monthly payment: 1900€/month(1450+450) Period: 7 years So over 7 years: repayment would be 450x 7 years= around 35.000€ Amount remaining on ballon payment at the end of 7 yrs: 535.000€( 570.000-35.000) Here's why I am interested: *The two apartments attached to the home are rented out for a total of 1200€/ month * The home on sale can be rented out for about 1500€/month. So, total monthly NET rent: 2700€/month My potential monthly cash flow: 2700(monthly rent)-1900(monthly rent to own amt to seller)= 800€/month Possible profit if I don't buy the home in 7 yrs: 800x12x 7= 67.200€ No money down. Even if I buy the home after 7 yrs through conventional bank financing: the monthly payment would be around 1800/ month. So what do you think guys. I am scared. Never handled such large sums of money. Never done a deal before. Just decided after following bigger pockets to take the plunge. Any pitfalls you guys see? What should I watch out for? Any advice would be highly appreciated. Thank you