 Mon, Mar 17 2008 1:08 PM
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sal_lentini
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Temple Opportunity: CASH COW
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How does $22K down, $22K back (net total $0 out of pocket), with $50K
in equity and $800+ cash flow per month sound?
We
buy shells or vacant lots and build duplexes on them (6 or 8 unit) in the Temple area. We
have the blueprints. We provide companies to finance the project. We
manage the construction. Investor gets their down money back during
construction (due to higher appraisal value. Finished property has $50K
in equity built in and cash flows at $800+ per month (taking all
expenses into account). We provide investors with property management
companies.
DETAILS:
Lot Amount: $70K
Holding costs: $13,303 (insurance, interest reserve, utilities)
Construction Cost: $156,743 (6 BR duplex)
Acquisition + Repairs: $240,047
Closing Costs: $5900 (1 point to bank plus 5% of purchase price)
TOTAL LOAN: $245,947 (80% of appraisal value. If property appraises higher (see below), 75% LTV will work)
APPRAISAL VALUE: $307K (could be as high as $320-$330K based on some of our recent projects in the area)
Down
Money: $22,400 (Down money on lot, insurance, closing costs. This all
comes back during construction due to high appraisal)
Rent: $3000 ($500 per BR)
P&I: $1699 (6.75% 25 yr commercial)
Taxes: $60
Insurance: $92
Vacancy: $150 (5%)
Maintenance: $150 (5%)
MONTHLY COSTS: $2151
CASH FLOW per month: $849
Let me know if you're interested (offline - email below) or have questions.
Talk soon,
Salvatore Lentini
salvatore@elmtrust.com
E L M T R U S T
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