Investment Property In Mobile County

Real Estate Agent with RE/MAX Select

If you have been considering getting a piece of rental real estate for an investment, there has never been a better time!  Here is an example showing how great a return on your money that can be.  Let's make a couple of assumptions for the sake of this example:

  • you are paying $100,000 for your property
  • you are getting a 15 year loan at 8%
  • you are paying 20% down
  • you can lease the property for $1100 per month
  • closing costs are $3000
  • repairs and updating cost $7000
  • insurance costs $900 per year
  • taxes cost $600 per year
  • routine maintenance is $600 per year
  1. down payment               $20,000
  2. closing costs                     3,000
  3. repairs and updating         7,000


          total invested                 $30,000


  1. principle and interest            $765
  2. insurance                                 75
  3. taxes                                       50
  4. maintenance                            50


total monthly expense                   $890


$1100 - $890 = $110          $110 x 12 = $1320


  1. appreciation on value        $4,000
  2. principle reduction               3,100
  3. positive cash flow                1,320
  4. tax incentives              (ask your CPA)


       total return first year             $8,420


$8,420 / 30,000 = 28.1% return on investment your first year.  This does not take into account tax incentives your CPA can help you with.  This property will be paid off with no further investment. 

If this doesn't light your fire, then your wood is wet!

Call me for more information.  I would be happy to get you investment properties to look at and help you find financing.


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Mike Liess
Coldwell Banker Custom Realty - Penfield, NY

Thanks for the post John, looks like a good place to invest, much like Rochester NY. Can't believe how cheap the taxes are, I need to get out of NY AND MOVE SOUTH!

Jan 16, 2012 02:50 PM #1
John Stikes
RE/MAX Select - Mobile, AL

Come down Mike.  I was born in Brooklyn and love it here.

Jan 16, 2012 03:05 PM #2
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