Live Learn Invest

First order of business - condo #3 - raise rent

August 15th, 2004 by Kenric

Now that I’m settled in, I go to the city office and ask how to get my Section 8 rent raised. I just need to fill out an application and state the rent I wanted. A city inspector will determine if my request is market value rent.

After researching the rent in the area, I ask for a rent increase to $850. The increase is approved and just like that my cashflow goes up $95/mo.

The numbers for this condo are:

$73,250 purchase price
$14,650 down payment
$58,600 mortgage (6% int only)
$3,000 closing costs

$850/mo rent
$313/mo HOA
$20/mo insurance
$40/mo taxes
$293/mo mortgage

Cashflow = $850 - $313 - $20 - $40 - $293 = $184
COCR = $2,204 / ($14,650 + $3,000) = 12.5%

Posted in Real Estate |
Stumble it!