It has been a very busy last few months which is always exciting but thankfully all is going well now and will be able to get back to doing blogs on here. There are several ways of investing in properties. The two that make the most sense to me right now are going the manufactured home route or going single family dwellings. Here are two REAL examples of both of these and why it is advantageous to go this route. I have tried to bring out both the positives and the negatives of both scenarios. You will note that I feel that both of these routes are currently stronger to go than multi-unit housing. I will include information on multi-unit housing on my next blog.
1.) Residential Property Home
Apx. price $90,000 (can possibly get cheaper)
Monthly rent should get you $850
$850 * 12 = $10,200
Taxes and Insurance around – $2,000
Utilities (can have tenants pay) – $ 960
Profitability Net $7,240
Appreciation (est. at 10% per year) $9,000
Overall profitability $16,240
Percentage of profit on home per year is 18%
Added benefit is depreciation / repair expense that will help your tax liability.
Additional expenses are repairs and vacancy factor which can also help you on your tax liability.
All homes will have different prices to purchase. Taxes and Utilities will also will be slightly different per location. If these numbers interest you, let me know and I can break down a few on the market for much closer to exact numbers.
2.) Investing in Manufactored Housing
The advantage of this is it can be viewed very much like a Certificate of Deposit. Very low initial price with great monthly rent coming in. These can be a little more difficult to find as there are not as many of them on the market. The downside of this investing style is you generally have to have all in cash and apprecation is very minimal. You do have the benefit of knowing land will always have value so essentially you are paying very little for the home and almost all rent received this way becomes a straight profit. The biggest advantage viewed by many people on these is the taxes and insurance are substantially lower.
The homes normally sell for around the $60,000 mark for three bedroom and $50,000 for a two bedroom.
Monthly rent $600 (2 bdrm) $700 (3 bdrm)
600*12 rent = $7,200 700*12 rent = $8,400
Taxes and Ins per year = $700/year T&I -$850
Utilities -$570 Utilities -$570
Net Totals $5,930 $6,980
Appreciation – –
Profitability 11% per year 11% per year
As with all homes you will have upfront costs of repairs and also vacancy which will drop the amount you make.
All numbers are approximate and every home will have slightly different tax values. These numbers are approximates and if you like the numbers you see here I will break down indivual homes for you when they come available with more exact numbers.
CURRENTLY THERE ARE NO MANU. HOMES ON THE MARKET THAT ARE IN MY PICKS AS NONE MEET PRICE AND LOCATION CRITERIA. IF THIS AREA INTERESTS YOU LET ME KNOW AND WILL SEND THEM TO YOU AS SOON AS THEY ARE AVAILABLE.
*********** I will always try and save a few of what I view as well priced homes and also possibile manufactored homes under my best picks on my website. Go to Property Search then click on the my best pics tab.***********