OfflineCASH FLOW A PROPERTY?
If there was ever an opportunity to buy property that cashflows this is it. To make sure that the property will cashflow, use the following formula. Charlie
Calculating Loan Costs
Purchase Price: $200,000
Down Payment: $ 20,000
Monthly Annually
Loan amount: $180,000 @6% for 30yrs. = -$1079.19 -$12,950.28
Taxes: -$83.33 -$ 1,000
Insurance -$ 66.00 -$ 800.00
Total Expenses: -$1,228.33 -$14,739.96
Rental Income +$ 1200 +$14,400
Difference -$28.33 Monthly -$339.96 per year
In order to lower your monthly loan costs reduce your purchase price.
Your ideal purchase price will allow you to have a monthly positive cash flow which means that your income exceeds your expenses.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
The formula is easy to read and understand. My guess is The formula you have includes the total amount of principle and interest for the 6% 30year fixed loan, right? I don't want to get lost. Secondly...the $200,000 is the asking price as an example and not the FMV right? I want to learn by asking questions.
Bill G.
P.S. I have something similar that I put on an excel spreadsheet.
Never Give Up, Never Surrender!
Thanks for the example.