A good week for everyone, I would like to purchase a single in Vegas at the cost of 300k with financing ...
Good week everyone, I am interested in purchasing a single in Vegas at a cost of 300k with 80/20 financing at an interest rate of 5% and to rent it out, I will note that the rental prices are relatively high ranging from 2000-2200, it is a large newly built single with 4-5 rooms, from experience with similar single tax that I previously purchased in Vegas, the rental is quite fast and without repair costs or increases that pop up, my question is whether it is worth continuing to purchase the same properties and continue to do what is already working great for me or should I try to purchase cheaper singles without financing? As you know, a 20 down payment on a single whose price is usually 300 with closing costs reaches 70+, which in many cases is 70-100. I can purchase another property without financing, thanks for the help
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Nati Kovari
Hi Jun Yoni Vico
Let's try to figure it out together.
Leverage of 240k 5% interest loan -> Average repayment of
Repayment of $ 1600 per month (I took for 20 years - if more, you earned).
And you are also there 60k, guess in cash.
Of course, correct me if I'm wrong, you know the rest of the data.
Let's say a rent of 2200, because it's a sought-after area. Even if I only reduce expenses by 30 percent per year -
This is your result:
(2200 × 12) × 0.7 = 18,480 $
18,480 / 300,000 = 6.16%.
now,
If it satisfies you and makes sense to you. Dino..lots of success.
If not, think what you are doing next with the decision.
Depends on a person.
You know what is good for you and what will be called an attractive investment for you.
post Scriptum
The above was said in order to give an objective picture and help in looking at a situation, and not to cause a diversion from one investment or another.
good luck ?
I think that 2100 on 300k's property is really not a high rental price.
Unless, the taxes are really low (not familiar).
For comparison, in the Chicago area I am currently on a property contract with a purchase price of 245 and a rental expectation of 2100 - no repairs are required at all.
Excellent area with good schools !!