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TRANSCRIPT
Investment Buyer’s Guide Crea4ng Confident Real Estate Investment Solu4ons
Long-‐Term Investment Proper1es
Fall 2015
The Rental Investment Property
Do Your Research and Know Your Market
Single-‐family homes occupied by renters has increased substan>ally throughout the years, and will con>nue to
grow
Downtown Orlando – 5.5 miles Orlando Regional Hospital -‐ 5 miles SunRail Sta=on – less than 1.2 miles
Orlando Interna=onal Airport – 4.5 miles Lake Nona Medical Community – 9.7 miles
Cocoa Beach – 50 miles (data retrieved from Google Maps)
Income Rental Proper4es: Benefits of Buying
1. Fixed Monthly Rental Income
2. Long-‐term apprecia4on of your home that will increase in value
3. Major Tax Write-‐Offs for your Income Property
4. Diversifica4on of investment porSolio
Have a Plan: Basic Business Plan Will Work
First-‐Year Income Expecta=on How many years do you want to hold the property?
What is good ROI for you? How much do you want to invest?
How much to put aside for home maintenance and vacancy?
Gross Poten4al Income : Numbers That MaXer
Rental income +
Vacancy Loss -‐-‐
Payments -‐-‐
Expenses -‐-‐
Cash Flow
=
Gross Poten4al Income : Numbers That MaXer
Standard 3/2 home in Belle Isle. Built in late 1950s to 1970s at: $150,000 Average rental rate for the Orange and surrounding coun=es for 3/2 (no pool) : $1,400.00 Cash investment of $50,000 ; carry a 30-‐year fixed mortgage
Loan Informa1on Loan amount $100,000
Annual interest rate 5%
Number of months 360
Monthly principal and interest payment $536.82
Monthly property taxes $86.50
Monthly hazard insurance $83.33
Monthly PMI (if applicable) $.00
Total monthly payment (including taxes, insurance, and PMI if applicable) $706.65
Es=mated monthly mortgage payments: $706.65 (including tax, insurance, interest) Annual mortgage payments: $8,479.80 (including tax, insurance, interest)
Gross Poten1al Income
Rental Income $16,800.00
Annual Mortgage $8,479.80
Vacancy Rate $650.00
Annual Maintenance Fund $650.00
Return on Investment $7,020.20
ROI on $50,000 (cash) 14%
(Figures may vary depending upon certain variables)
Why Belle Isle?
§ Affordable real estate market § Friendly Central Florida community
§ Ideal loca4on for families or young adults § Offers the lowest property and u4lity taxes in Orange County
§ Loca4on and proximity to major surrounding businesses and local employers § Highly undervalued area that offers excep4onal growth poten4al
§ Proximity to SunRail Sta4on; commuter railway service in Greater Orlando area § Conway Chain of Lakes access
Income data for Belle Isle generated from Property Report on MLS
Understanding Regional Proper4es
Maintenance Concerns:
• Roofs • Air-‐condi4oning Units • Termites • Mold
Knowing your property and understanding the region it is located in, will beRer help you make wise choices as an investor.
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