Real estate investment N 71st Dr Phoenix, AZ 85033
Summary of the investment (6 years, 5 months)
33.6%/year compounded
investment sep 11, 2012 -$9500
rent cash flow approximately : $200/month (65 months) = 13,000
profit after sale: $82,708.99
income in the live of the investment: $95,708.99
Return over investment capital = $95,708.99/ -$11.000 = 870% . 33.6%/year compounded
I bought the LLC that owned this house around sept 2012 for $-11.000, I did need 6 years later to come up with $15.000 for a lawsuit to clean title, and it took around a year and many headicks to make it work.
Cash that I used to buy the LLC: -$11.0000 (sep 2012)
Mortgage: -$64.000 (sep 2012)
Mortgage payment (including piti expenses) -$636.31 (sep 2012)
Mortgage: -$64.000 (sep 2012)
Mortgage payment (including piti expenses) -$636.31 (sep 2012)
Value in (sep 2012)
Rent: $1095
Mortgage -$549.47
Management: $109.5,
Cash Flow: $
Mortgage -$549.47
Management: $109.5,
Cash Flow: $
Sold (2/11/2019): $150.000,
Profit: $82,708.99
Profit: $82,708.99
The estimated value of the property when I bought it was about $56.000. I knew it was worth at least $150.000 because that's how much it would have cost to rebuild it taking on account depreciation (take a look at the insurance description below).
So even though I was technically losing money when I bought it (remember it had a mortgage of $64.0000+ $11.000 that I paid for the llc, that equals $75.000 against a $56.000 price) I knew statistically it would take between 3 to 10 years to come back to a normal value, until then I was being paid $200/month in cash flow for renting the property.
thats a $200/ month. if you take on account the $11.000 investment, I was making almost 22% a year even if the price didn't move.
So even though I was technically losing money when I bought it (remember it had a mortgage of $64.0000+ $11.000 that I paid for the llc, that equals $75.000 against a $56.000 price) I knew statistically it would take between 3 to 10 years to come back to a normal value, until then I was being paid $200/month in cash flow for renting the property.
thats a $200/ month. if you take on account the $11.000 investment, I was making almost 22% a year even if the price didn't move.
Please read the article "Blog's "read me first"" Terms And Conditions Of Use All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner of this blog will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information. This terms and conditions is subject to change at anytime with or without notice.