This house was purchased as an investment property in 2012. At the time, the Army Corps of Engineers was sponsoring a program called the Homeowner’s Assistance Program. Under this program, the government agreed to allow the homeowner to sell the house for what they owed and they would cover the rest. As a result, I was able to buy the house for $253,500 when it had been purchased only a couple of years before for over $500K. At the time, the house appraised for $310,000. After my 20% downpayment of $50,700, I had almost $110,000 in equity.
Monthly PITI: 1300
Property Management: 125
Maintenance: (220) 10%
Vacancy (110) 5% ( of note, this house has never been vacant…)
Cash Flow: 445
This house is only miles from the south gate of Marine Corps Base Quantico. As a result, my tenants over the last four years have been military members, extremely reliable and respectful. I haven’t had any vacancies and no tenant has ever missed a payment.