These are the (new) three most important words in real estate today.
In preparation for my class of the above name on Thursday, I scoured the Las Vegas Multiple Listing Service for residential resales to use as examples. Here’s what I found:
Property 1:
3 bedrooms/3 baths, 1180 square feet in northeast Las Vegas just 4 miles from Nellis Air Force Base.
Seller is a bank or finance company.
List price is $50,900. Year built, 2007
Based on photos, the property is in good condition with artificial wood floors, clean carpet and new paint, but no appliances.
At list price with a 20% down payment, 6% in closing costs, $1800 for appliances and a 5% 30-year fixed loan, the property is estimated to cash flow at $2,221 before taxes.
If you could get the seller to discount the price to $46,800, the annual income jumps to $2,739.
Property 2:
3 bedrooms/3 baths, 1598 square feet in Henderson, Nevada, near the intersection of two auxiliary interstate highways.
This is a short sale.
List price is $79,900. Year built, 2001
Based on photos, the property is in good condition with carpeted floors throughout and all appliances.
At list price with a 20% down payment, 6% in closing costs and a 5% 30-year fixed loan, the property is estimated to cash flow at $3,941 before taxes.
I thought the list price was high so I also ran the numbers with a sales price of $69,900 (a 12.5% discount). The reduced price brings in $4,456 before taxes.
Property 3:
3 bedrooms/2 baths in Henderson, Nevada within one of the top school zones in the county.
This is a short sale.
List price is $95,000. Year built 1985
Based on photos, the property is in fair condition.
At list price with 20% down payment, 6% in closing costs and a 5% 30-year fixed loan, the property is estimated to cash flow at $3,753 before taxes.
At $90,000, the property would cash flow $4,010.
An embarrassment of riches. Each property flows positively. Each would make a great investment. If you were investing, which property would you choose and why?
If you want to learn more about these properties and similar ones; how to calculate rates of return for real estate investments; and how to find, negotiate and close on great real estate deals, come to my class:
Thursday, October 20th, 2pm
Keller Williams Realty Las Vegas
3090 S. Durango #100 (at Sahara)
RSVP KMcMurray@KW.com
**This article is featured in theHow to Make Money with Real Estate Blog Carnival: December 1, 2011 Edition**
