Cash is King, but Cashflow is better

By
Real Estate Broker/Owner with GM2 BRE 01366388

I am currently working with an investor that is looking long term buy and hold with cash flow.

I am shocked at what we are finding.  We just wrote an offer on a duplex that is a bank repo.  We have an offer in of $110000, just under asking, 30% down and no closing cost credits.  The rents are $800 per side.  So we have been looking at the numbers and here is where we are.  He has about an 80K loan with a 6% interest rate.  His PITI on a 30yr fixed is about $700/mo.  Add in a mangement fee and garbage bill, he is still under $1000 month.  And his rental income is $1600/mo.  I am no rocket scientist but that is a phenominal investment.  Take into consideration 75% occupancy rates and he is still positive $200/mo.  He wants to buy 3 this year.  Real Estate is always a good investment, and GOD is not making any more dirt.  Now is the time very everyone to buy. 

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