RE sale in Huntsville AL

[surveyor]

California prices…. Alabama prices…

Management fees = $375*4*0.1*12= $1800
Insurance = $900 / yr.
Taxes = $1000/yr.
Utilities/Maintenance = $110*12 = $1320
Repairs = $1080.

We are doing the home inspection now, but there are no deferred maintenance issues. The roof is a sticking point, it has about five years left, so we discounted the sale some because of that. Every thing else can be taken care of and since it cash flows, I have some wiggle room. Does that mean it will perform perfectly over the first year? No, but this property should be fine over the long run.

If you include the mortgage, then the expenses are:

Mortgage: 7567
Expenses: 6100

Cash Flow = $18000-7567-6100 = $4333.

[surveyor]

Inflation / Appreciation

Inflation will not necessarily set the appreciation rate (see what is happening in California). The 4% appreciation rate is a “safe” bet number that you can count on and use for preliminary calculations. I have some faith that the Alabama market will do more than 4%, but I will only anticipate 4%. We have had numerous discussions here saying that housing only goes up as far as inflation, but putting in a number higher than 4% for Alabama is asking for trouble and makes the properties there look better than they actually are. If I revisit the property a year from now and it has gone up in value 8%, great, but I am not counting on it.

[surveyor]

Inflation / Appreciation

Inflation will not necessarily set the appreciation rate (see what is happening in California). The 4% appreciation rate is a “safe” bet number that you can count on and use for preliminary calculations. I have some faith that the Alabama market will do more than 4%, but I will only anticipate 4%. We have had numerous discussions here saying that housing only goes up as far as inflation, but putting in a number higher than 4% for Alabama is asking for trouble and makes the properties there look better than they actually are. If I revisit the property a year from now and it has gone up in value 8%, great, but I am not counting on it.

[surveyor]

Inflation / Appreciation

Inflation will not necessarily set the appreciation rate (see what is happening in California). The 4% appreciation rate is a “safe” bet number that you can count on and use for preliminary calculations. I have some faith that the Alabama market will do more than 4%, but I will only anticipate 4%. We have had numerous discussions here saying that housing only goes up as far as inflation, but putting in a number higher than 4% for Alabama is asking for trouble and makes the properties there look better than they actually are. If I revisit the property a year from now and it has gone up in value 8%, great, but I am not counting on it.

[surveyor]

Inflation / Appreciation

Inflation will not necessarily set the appreciation rate (see what is happening in California). The 4% appreciation rate is a “safe” bet number that you can count on and use for preliminary calculations. I have some faith that the Alabama market will do more than 4%, but I will only anticipate 4%. We have had numerous discussions here saying that housing only goes up as far as inflation, but putting in a number higher than 4% for Alabama is asking for trouble and makes the properties there look better than they actually are. If I revisit the property a year from now and it has gone up in value 8%, great, but I am not counting on it.

[surveyor]

Inflation / Appreciation

Inflation will not necessarily set the appreciation rate (see what is happening in California). The 4% appreciation rate is a “safe” bet number that you can count on and use for preliminary calculations. I have some faith that the Alabama market will do more than 4%, but I will only anticipate 4%. We have had numerous discussions here saying that housing only goes up as far as inflation, but putting in a number higher than 4% for Alabama is asking for trouble and makes the properties there look better than they actually are. If I revisit the property a year from now and it has gone up in value 8%, great, but I am not counting on it.

[Ash Housewares]

Thanks for the post surveyor. I learned something, and certainly appreciate the time you took to write all that.

[Ash Housewares]

Thanks for the post surveyor. I learned something, and certainly appreciate the time you took to write all that.

[Ash Housewares]

Thanks for the post surveyor. I learned something, and certainly appreciate the time you took to write all that.

[Ash Housewares]

Thanks for the post surveyor. I learned something, and certainly appreciate the time you took to write all that.

[Ash Housewares]

Thanks for the post surveyor. I learned something, and certainly appreciate the time you took to write all that.

[patientrenter]

Many thanks, surveyor. Where do we go to get more info on this kind of investment? I am interested in investing maybe $200-$250K and don’t want to spend forever examining, buying, and then maintaining lots of properties, so I’d want to spread my money over maybe 3-4 properties. Is there a forum, magazine, club…?

Patient renter in OC

[patientrenter]

Many thanks, surveyor. Where do we go to get more info on this kind of investment? I am interested in investing maybe $200-$250K and don’t want to spend forever examining, buying, and then maintaining lots of properties, so I’d want to spread my money over maybe 3-4 properties. Is there a forum, magazine, club…?

Patient renter in OC

[patientrenter]

Many thanks, surveyor. Where do we go to get more info on this kind of investment? I am interested in investing maybe $200-$250K and don’t want to spend forever examining, buying, and then maintaining lots of properties, so I’d want to spread my money over maybe 3-4 properties. Is there a forum, magazine, club…?

Patient renter in OC

[patientrenter]

Many thanks, surveyor. Where do we go to get more info on this kind of investment? I am interested in investing maybe $200-$250K and don’t want to spend forever examining, buying, and then maintaining lots of properties, so I’d want to spread my money over maybe 3-4 properties. Is there a forum, magazine, club…?

Patient renter in OC

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