Investment

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Case Studies
Case Study #1: "Being Creative to Make Everyone Happy!"
Case Study #2: "Investment Decisions Not Always Obvious."
Case Study #3: "Investment Property Equals Very Affordable Home!"
Case Study #4: "Good Investments Often Made, Not Found!"
Case Study #5: "Best Not to Panic When Dealing With Problems."
Case Study #6: "Real Estate is an Expanding Investment."
Case Study #7: "Big Deals Don't Always Require Big Money!"
Case Study #8: "Don't Overlook The Ugly Ducklings!"
Case Study #9: "Hot Market Mortgage Rates Drop, Prices Rise:"
Case Study #10: How the Banks look at Investment Properties
Case Study #11: "Rising Executive"
Case Study #12: "High-Income Professional"
Case Study #13: "Middle-Aged, High-Income Professional"
Case Study #14: "Middle-Income, Empty Nesters with Recent Inheritance"
 
Case Study #1: "Being Creative to Make Everyone Happy!"
 
The Property: A large (3400 sq.ft.), 4 level, 4-plex containing 2-1 bedroom and 1 - 2bedroom licensed apartments plus 1 unauthorized 2 bedroom basement suite on a 30� x 88� corner lot. The building is structurally sound, but required repair work in a number of areas including roof, plumbing and wiring.
The Revenue: At closing, the gross rent was $3,005/mo., or $36,060/yr, with upside potential as some of the rents were below market. Taxes and expenses were approx. $7,000/yr, providing a Net Income of $29,000/yr or $2,422/mo.
The Sale: The property was listed for $428,000. The sale agreement was for $450,000 with the seller �giving back� a repairs rebate of $25,000 upon closing. This made the actual sale price $425,000. The seller also agreed to �take back� a 2nd mortgage of $30,000 @ 7% for a 2 yr. term with �interest only� payments of $175/mo or $2,100/yr.
The Financing: As well as the 2nd mortgage from the seller, the buyer arranged a 1st mtg of $337,500 @ 4.7% for a 1 yr term with payments of $1,905.68/mo or $22,868/yr. This amount was based on 75% of the �contract� sale price... [continues]

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