If you buy a home as opposed to renting, what are you doing? Well first off, let’s talk as if you were to own this home for the full 30 years of a mortgage and it was a $250,000 home. You put 10% down. Your mortgage is about $1,400/month and it is a robust, 4 bedroom 2 bath home. You love it.
During this time you have replaced the roof twice at $10,000 a pop and the a/c twice for $5,000 a pop, so you have $30,000 over a 30 year period of major repairs…the rest is paint, carpets, etc… That is subjective but let’s pin that at $10,000 more dollars.
You have spent $40,000 over a 30 year period or $1,333 a year/$111 per month. OK, so now what?
Here you are at the end of the 30 years and you now own this home and it has increased to a value of $325,000, pretty cool. Take out the $40,000 you spent over the years and you are semi-wealthy.
If you rented for this 30 year period, you would have paid $1,750 a month in rent for that 4 bedroom 2 bath home. When you consider that in the previous scenario, you were paying a mortgage that was $350 less…but take out the fact that $111/month on average was what you spent on repairs per our calculations.
OK, so what does this leave you with in 30 years?
Your deposit back of $1,750.
There are down payment assistance programs, historically low-interest rates, and off-market inventory that we specialize in….give us a call and let us tell you about how you can buy up to a fourplex with a VA or FHA loan and start cash flowing on your first purchase.
Are you a few years into the game? We can help you invest your hard earned cash and purchase multi-family cash flowing property.
Either way, we are here to help.