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)

Value in (sep 2012)
Rent: $1095
Mortgage -$549.47
Management: $109.5, 
 Cash Flow: $
Sold (2/11/2019): $150.000,
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.   
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