Buying Charlotte Rental Property with a Loan? Carolina Living Real Estate Property Management Advice
Are you an investor evaluating whether to buy Charlotte Investment Property with cash? Is that even an option for you? Buying the right Charlotte investment home with a loan makes a lot of sense too. That’s because you’re buying an appreciating asset that grows in value over time while a tenant pays your mortgage. The return on that investment can be very good.
Down Payments and Rental Income
Let’s look at an example.,Consider a home priced at $200,000. An investor looking for a mortgage will most likely need to put down 25 percent of the purchase price. That’s $50,000 for the down payment, leaving you with a mortgage loan of $150,000. The Principal, Interest, Taxes and Insurance monthly payment will run in the neighborhood of $1,050 a month. Choosing the right property with our assistance will allow the rent you earn on that property will easily cover those costs. With our deal analyzer we can walk through these costs and potential rents to ensure that you are positioning yourself for success.
Appreciation Estimates
Even more exciting than what you earn in rent is what you are earning for the future. If the property in this example appreciates at three percent per annually, the home would have an estimated value of $231,000 after five years. That’s an appreciation of $31,000. This gain compared to the original $50,000 investment you made equates to a 62 percent return on investment. We invite you to find a better return with any investment vehicle. It’s also worth noting that the three percent appreciation rate is very conservative. Last year, values grew at better than 5 percent. In our market, there’s usually an annual gain of four percent or higher.
Carolina Living Real Estate Property Management
If you’re thinking about buying investment property or you already own some then please consider joining the Carolina Living Real Estate Property Management family. Call us today to learn why over 90% of our clients are Referrals from past and current customers. You’ll be glad you did.
Note: If you own multiple properties as us about negotiating our rate to manage your portfolio.