First off, two administrative points...I have been hearing the same two questions from a lot of my readers.
First,
everybody receiving this email is allowed to take part in the monthly
contest- you don't have to be a current or past client- we don't even
have to know each other. If you receive this newsletter, you are
eligible and should participate- this year I have already given away an
iPhone, Chargers tickets, gas card, cell phone headset and other prizes.
Second,
readers want to know why this newsletter is mailed in the middle or end
of every month. Real estate stats for the prior month are usually
released around the 15th-17th of every month. So if you look at the
chart above, you will notice that this is for September stats (they
will always be delayed at least 1 month). Also, I personally create and
write this newsletter every month and sometimes when the listings and
escrows get busy, I have to delay the process (like this issue!).
Now
onto real estate...the past few issues have been heavy with headlines
and recaps about the current financial and housing crisis. There is
definitely new material from this past month if I wanted to continue on
this path. However, I thought about switching things up a bit and
providing you with a real estate success story during these tough times.
Last
month, I closed a transaction for an investor in the San Diego State
Area. My client and I begin our search in another area and for another
type of property- this often happens. Murrieta and Temecula have some
larger, newer homes for sale in the high $200s and low $300s. This was
our initial focus but the distance posed a potential headache when it
came to property management. So, we refocused in Central San Diego.
Ultimately, my client ended up purchasing a 3 bedroom condo in the
College Area.
Purchase
Price= $175,000. We got a great deal on this property since it was a
short sale and our timing was perfect. The previous buyer was unable to
perform and we stepped in. There was an identical unit next door in
escrow at $209,000 (which ended up closing at $230,000) and another
active unit for $225,000.
3 Bedrooms, 2 full baths, 1,140 sq ft.
Fully upgraded- granite, tile floors, etc...completely redone in 2004! Check the pics to your left!
| 4820 68th Street, San Diego, CA 92115 |
| Purchase Price |
$175,000 |
| Downpayment |
$44,000 (25%) |
| Loan Amount |
$131,000 (75%) |
| Loan Details |
5.5% ARM 5 year |
| Rent |
$1,599/month |
| Expenses |
-HOA (Covers limited insurance,
water, trash, sewer, landscaping) |
$285/month |
| -Taxes |
$165/month |
| -Insurance |
$20/month |
| Cash Flow |
| Net Operating Income |
$1,130 |
| Monthly Mortgage Payment |
$795/month |
| Pre-tax Cash Flow |
$335/month |
| Return on Downpayment |
10% |
As
an additional and free service to my client (the offer also applies to
you), I rented the property for him. We had a tenant signing a 12 month
lease within 1 week of having the property available to show and for
$150/month more than my client had anticipated.
Return on investment is around 10%!
Does it make you question all that money you still have invested in the stock market?
