Cash Flow Investment Opportunities in Capitol Heights, Maryland

Cash Flow Investment Opportunities in Capitol Heights, Maryland

Investors who want to get good cash flow can find some great opportunities in Capitol Heights, Maryland.

Housing prices, like in many other parts of the country, have declined there, but rents have remained high. It is very common to see rent-ready three- and four-bedroom single families there priced around $100,000. Rents are in the $1500 to $1750 range.

What would be a good strategy to buy investment properties like this?

To get a mortgage, investors need a great credit score, which is difficult to have as an investor, given the debt load they carry when they own many rentals. And even then, investors often must put 25 percent down to buy a new property.

Of course, investors could pay cash, but that is not necessary with a new seller financing program.

In ths program, cash investors will purchase the target property for the rental investor. Then the investors will provide seller financing to the rental investor. Usually, the rental investor needs to pay about 10 percent down to have the cash investor provide the financing. Interest rates are around 8 percent on a three-year term. To learn more about this program, click here.

The math on investment opportunities in Capitol Heights would work this way: if the target property's price is $100,000, the cash investor would finance $90,000 after the rental investor paid $10,000 down. At 8 percent, that is a $660/month payment.

Property taxes on these properties run high, around $3,500, but they have been assessed at more than $200,000. A service I use can reduce the tax assessment to the current value of $100,000, thereby cutting the property taxes in half, to about $145/month. Throw in insurance at, say, $80 per month and you are looking at total expenses of about $885. If you get $1600 a month in rent, you have cash flow of $715, or $8,580 per year.

If the investors had $100,000 in the bank, earning 2 percent, they would earn $2,000 per year. With this program, they could buy 10 such properties with that same amount of money and earn $85,800 per year.

Oh, and did I mention that the cash investors don't run a credit check, just a background check? So the number of properties that the rental investors could buy is determined only by how much cash they have.

If investors want to learn more about this program, please call, email or contact me at my Web site. They can also search for properties at this Web site. Any property you find there can be purchased through this program.