Just before the holiday weekend a great investment opportunity arose in Langhorne when the townhome in my previous blog lowered it's price to $165,000. I immediately ran out to tour the property as I suspected it would make a great addition to a client's real estate investment portfolio. After touring the property it seemed to me that it would cost about $12,000 to get it into rentable shape as long as the mechanical items were all working properly and it would then reasonably rent for $1,600 per month. I ran a closing cost estimate for what an investor with a good credit score could expect to be offered and found that over a 25 year amortization the monthly payment including the mortgage, interest, insurance & taxes would come to about $1,150 per month leaving the investor with some extra cash each month. I ran a great real estate investment program I have that factors in appreciation over a certain period of time, the tax implications, the cost to buy, fix up, maintain each year & then sell. I stayed conservative with the numbers and the program calculated a 10% ROI after taxes!
Unfortunately, due to the holiday weekend my clienty was unable to get out to see the place before another buyer scooped it up. The lesson here is great investment opportunities must be acted on quickly. Everyone wants a place to sink some money right now where they feel comfortable so when a good opportunity arises you can't let it sit out there for too long. This isn't to say you should jump in before reviewing all of the facts and discussing your options with your accountant, financial advisor & mortgage lender, but to move quickly enough to not miss a great opportunity.
If you are interested in investing in real estate in the Bucks County area give me a call. I've helped many investors find great places and have also introduced them to new areas they hadn't considered before. Being a real estate investor myself I can tell you from personal experience the ups and downs of investing in real estate and show you how to identify a worthwhile investment.
Prudential Fox & Roach Realtors Newtown
The postings on this site are my own and do not necessarily represent Prudential Fox & Roach's positions, strategies, or opinions.
Information re: homes listed for sale & recently sold properties was obtained from Trend MLS and the properties contained in the list were listed and sold by various participating Brokers in the MLS. If your property is currently listed with a Real Estate Broker, please disregard this notice. It is not our intention to solicit the offerings of other Real Estate Brokers. We co-operate with them fully. An independently owned and operated member of Prudential.