reply to post by DragonsDemesne
The reason I mentioned houses is the fact that they are going for ridiculously low prices. In the Detroit area, and surrounding suburbs area, many of
which are very good for living, a single family bungalow are going from 14k to 30k, with not much work the needs done inside. Rental per month
between $550 and $900 for those homes.
Simple math here, let's say you buy a home for 16k, need to put 3k into it, then rent it out for $650 per month.
How long does it take to recover your investment?
Of course you have insurance, taxes and upkeep, but the home will pay itself off in less than 4 years. Now you have the house paid for and everything
coming in after expenses is pure profit.
Times that buy 10 homes, equals 200k investment that will pay itself off in less than 4 years.
So now you own all the homes outright 4 years later and have $6,500.00 per month gross coming in, or $78,000 dollars a year, before expenses, Net
maybe around $62,000,00
I did not figure in the appreciation value of these house either.
What is really insane about the whole housing deflation is that to replace these types of homes, a typical single family bungalow insurance value is
about $130k to $150k to replace, so if something happened then rebuild cost is $130k.
Your right though buying homes may not be for everyone, but I am showing people that even in down times there is still good deals and opportunities,
if people want to see them.
edit on 17-5-2011 by Realtruth because: (no reason given)