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Why have a rental? Real World example that is FOR SALE in St Louis, MO
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Attention: Single Family Real Estate InvestorsAttention: Single Family Real Estate Investors
Looking for:Looking for:
Cash FlowCash Flow Tax BenefitsTax Benefits Increased NetworthIncreased Networth
Click next slide for information on an Click next slide for information on an Immediate Cashflow RentalImmediate Cashflow Rental
That’s Ready to Go !!!That’s Ready to Go !!!
Attention: Single Family Real Estate InvestorsAttention: Single Family Real Estate Investors
Rehab CompleteRehab Complete
Offered Undermarket Offered Undermarket
AND Owner is Willing AND Owner is Willing to Financeto Finance
Click next slide Click next slide NOWNOW for all the details >>>for all the details >>>
Cash Flow Rental ~ Cash Flow Rental ~ Ready to GoReady to Go
Pictures taken Feb 2008 – camera date wrong
6142 Jefferson, St Louis, MO 63134
Possible Rent $750$750 to $800$800 per month
Purchase Price = $79,500
Down Payment 20% = $15,900
Loan Amount = $63,600
** Monthly Loan Payment = $ 433.86
**based on 30 year loan, 7.25% (stated rate) per Jason Palliser investment services specialist – He can make it [email protected] ~ Office 314-551-9950
* Taxes and Insurance = $ 173.13
33 bedroom / 1.751.75 bath
*based on my escrow for existing loan
Cash Flow = $ 168.01Cash Flow = $ 168.01
Gross Rent = $ 775.00
Plus Other Benefits…Next Slide>>
~ Future Benefits of Rentals ~~ Future Benefits of Rentals ~
Most people only think ~~ TODAYMost people only think ~~ TODAY
But … What are the benefits of Rental Property over time ???But … What are the benefits of Rental Property over time ???
A Rental is for the A Rental is for the FutureFuture
Here are some numbers to think about …Here are some numbers to think about …
Building Net-Worth Long TermBuilding Net-Worth Long TermHow will this property affect you
Net Worth in 15 years15 years ?
Today’s Value $79,500(discounted for quick sale - it
appraised for $89,000 in 2006)
Inflation / Appreciation of 4% per year
In 15 years it’s worth $ 143,175
Less loan balance = $ 47,881
Added Net Worth = $ 95,294 Equity$ 95,294 Equity
( That your tenant paid for !!! )Pictures taken Feb 2008 – camera date wrong
Tax Benefits $$$Tax Benefits $$$Do you pay too much in Income Taxes every year?
Rentals can help…Rentals can help…
Purchase Price = $79,500
90% of Price can be Depreciated = $71,550
Spread over 27.5 years per IRS = $2,602
Times your Tax Bracket 30% = $780.60
You can pay $780.60 less in actual taxes paid in.
That cash flow = $ 65.05$ 65.05 per month
Pictures taken Feb 2008 – camera date wrong
TODAY !!!TODAY !!!
~ Increased Cash Flow ~~ Increased Cash Flow ~Do rents stay the same over time ???
NO, they increaseNO, they increase
2008 rents = $775 / month
Increase of rent over the next 15 yearsAt 4% per year
2023 rents = $ 1,396.00 $ 1,396.00 / month/ month
** Monthly Loan Payment = $ 447.51
* Taxes and Insurance = $ 312.00
Cash Flow = $ 636.49 / monthCash Flow = $ 636.49 / month Pictures taken Feb 2008 – camera date wrong
* Increased by inflation of 4% per year
** Fixed 30 year loan @ 7.25%
~ Big Picture 15 Years Later ~~ Big Picture 15 Years Later ~
Tomorrow’s worth = $ 143,175$ 143,175
Equity of = $ 95,294$ 95,294
Future Monthly CF = $ 636.49$ 636.49
What if you had 1010 properties?
In 15 years your net worth is $1 MILLION$1 MILLION and monthly income of $6,364$6,364
Today’s worth = $79,500
Loan Balance = $ 47,881
Today’s Monthly CF = $ 168.01
(In 15 years of a 30 year mortgage)
~ And that does NOT include ALL the tax benefits ~
Why Purchase ~ 6142 JeffersonWhy Purchase ~ 6142 Jefferson
Turn Key RentalTurn Key Rental
It appraised for $89,000 in 2006 ~ Selling below appraised value Home Owner’s Warranty for the first year The fix up is completed Tenant ready Can use a IRA – Traditional or Roth As close to “mailbox” money as possible Owner Financing Available Could be sold to a tenant / buyer as a Lease / Option for bigger upfront money Great building to start your net worth building Fenced in backyard Nice size lot and off street parking which is liked by tenants Home owners next door
Pictures taken Feb 2008 – camera date wrong
Why Purchase ~ 6142 JeffersonWhy Purchase ~ 6142 Jefferson
• Hardwood floors for less maintenance between tenants• Ceramic tile in the kitchen for durability• 3 bedrooms for easy renting vs 2 bed units• Nice big fenced in backyard• Maintenance free vinyl siding and windows• Newer roof• Updated electric circuit breaker panel and wiring• New sewer lateral to the street• New water line to the street• Updated plumbing inside the house (pvc and copper)• Unfinished basement with a ¾ bath (shower, toilet, sink)• Central Air and gas furnace• Freshly painted• Newer stove and dishwasher• Laundry hookups in the basement• Off street parking for up to 4 cars• Ready to occupy•Nice size back patio
Pictures taken Feb 2008 – camera date wrong
Where should you buy rentals ?Where should you buy rentals ?
It all depends on what you are looking for. ~ What do you mean by that ???
Do you want great appreciationappreciation OR cash flowcash flow today OR a combinationcombination ???
As a general rule:
The better the neighborhood the better the appreciation but less cash flow, if any
The better the cash flowThe worse the neighborhoodLess appreciation over time
Where does 6142 Jefferson fit in ???Where does 6142 Jefferson fit in ???
VSVS
Blue collar neighborhoods usually make good rental areas because there are enough home owners to keep
the neighborhoods decent and cleaned up
Where does 6142 Jefferson fit ?Where does 6142 Jefferson fit ?
Do you want great appreciationappreciation OR cash flowcash flow today OR a combinationcombination ???
I believe that 6142 Jefferson is in the combinationcombination world.
•The city of Berkeley is working hard to clean up their city which will increase the appreciationappreciation over time.
•Yes, you’re right it isn’t Ladue, but it isn’t North City either.
•It’s a good blue collar neighborhood, with good people.
•6142 Jefferson has several home owners around it, which is good for the area.
Yet the houses are still affordable enough to get some good cash flowgood cash flow, today
Ever Consider Using an IRA ???Ever Consider Using an IRA ???
Yes… Yes… You CAN purchase real estate using a self-directed IRA accountYou CAN purchase real estate using a self-directed IRA account
If you have a minimum of $10,000 to $15,000 in your IRA, I will enable you
to get the financing needed to purchase this property.
A “Self-Directed” IRA can purchase a property with all cash
OR
Check out a couple of sites: Trustetc.com or Pensco.comCheck out a couple of sites: Trustetc.com or Pensco.com
I can walk you through the transaction step by step, because I have done it before!
Could you imagine taking $15,000 and turning it into$100,000 in 15 years with
little ~ RISK !!!
Owner Financing ~Available~Owner Financing ~Available~
Can’t get another loan at this time ???Can’t get another loan at this time ???
Let’s talk Owner FinancingOwner Financing as an option
Here are the terms:
$79,500 Purchase30 year amortization5 year balloon8% interest rate10% down payment
Mortgage payment = $ 525.01
Taxes and Insurance = $ 173.13
Payment = $ 698.14$ 698.14
No Bank Qualifying Needed ~~ Close at a Title Company (like normal)
Not much cash flow today , but NO Banks NO Banks are needed to get started
Contact InformationContact Information
Yates Harrison
636-433-3636 office314-707-5365 cell
~ Reason for Selling ~~ Reason for Selling ~
The property is too far away for me, now. I only have 2 in North County and I’m selling both.
Pictures of 6142 Jefferson, 63134Pictures of 6142 Jefferson, 63134Exterior PicturesExterior Pictures
North side and rear
Front and South side
Front and North side
Rear and South side
Pictures of 6142 Jefferson, 63134Pictures of 6142 Jefferson, 63134
Interior PicturesInterior Pictures
Bedrooms Living room
Contact Yates … TODAY !Contact Yates … TODAY !
636-433-3636 office314-707-5365 cell
~ To view this property ~~ To view this property ~
Call or email Yates Harrison Call or email Yates Harrison todaytoday
If this property is already sold, you can request to If this property is already sold, you can request to be added to the buyer’s list and notified when be added to the buyer’s list and notified when
other Great Income producing properties become other Great Income producing properties become available!available!
