Investment  Buyer’s  Guide Crea4ng  Confident  Real  Estate  Investment  Solu4ons

Long-­‐Term  Investment  Proper1es

Fall  2015

The  Rental  Investment  Property  

Do  Your  Research  and  Know  Your  Market    

Single-­‐family  homes  occupied  by  renters  has  increased  substan>ally  throughout  the  years,  and  will  con>nue  to  

grow  

Downtown  Orlando  –  5.5  miles  Orlando  Regional  Hospital  -­‐  5  miles  SunRail  Sta=on  –  less  than  1.2  miles  

Orlando  Interna=onal  Airport  –  4.5  miles  Lake  Nona  Medical  Community  –  9.7  miles  

Cocoa  Beach  –  50  miles  (data  retrieved  from  Google  Maps)  

Income  Rental  Proper4es:    Benefits  of  Buying

1.  Fixed  Monthly  Rental  Income

2.  Long-­‐term  apprecia4on  of  your  home  that  will  increase  in  value

3.  Major  Tax  Write-­‐Offs  for  your  Income  Property  

4.  Diversifica4on  of  investment  porSolio

Have  a  Plan:  Basic  Business  Plan  Will  Work                                

First-­‐Year  Income  Expecta=on  How  many  years  do  you  want  to  hold  the  property?  

What  is  good  ROI  for  you?  How  much  do  you  want  to  invest?  

How  much  to  put  aside  for  home  maintenance  and  vacancy?    

Gross  Poten4al  Income  :    Numbers  That  MaXer    

Rental  income  +  

Vacancy  Loss  -­‐-­‐  

Payments  -­‐-­‐  

Expenses  -­‐-­‐  

Cash  Flow  

=  

Gross  Poten4al  Income  :    Numbers  That  MaXer    

Standard  3/2  home  in  Belle  Isle.    Built  in  late  1950s  to  1970s  at:  $150,000    Average  rental  rate  for  the  Orange  and  surrounding  coun=es  for  3/2  (no  pool)  :  $1,400.00    Cash  investment  of  $50,000  ;  carry  a  30-­‐year  fixed  mortgage    

Loan  Informa1on          Loan  amount   $100,000  

Annual  interest  rate   5%  

Number  of  months   360  

Monthly  principal  and  interest  payment   $536.82  

Monthly  property  taxes   $86.50  

Monthly  hazard  insurance   $83.33  

Monthly  PMI  (if  applicable)   $.00  

Total  monthly  payment  (including  taxes,  insurance,  and  PMI  if  applicable)   $706.65    

Es=mated  monthly  mortgage  payments:  $706.65  (including  tax,  insurance,  interest)  Annual  mortgage  payments:  $8,479.80  (including  tax,  insurance,  interest)  

Gross  Poten1al  Income  

Rental  Income   $16,800.00  

Annual  Mortgage     $8,479.80  

Vacancy  Rate   $650.00  

Annual  Maintenance  Fund   $650.00  

Return  on  Investment   $7,020.20  

ROI  on  $50,000  (cash)   14%    

(Figures  may  vary  depending  upon  certain  variables)    

Why  Belle  Isle?

§  Affordable  real  estate  market §  Friendly  Central  Florida  community

§  Ideal  loca4on  for  families  or  young  adults §  Offers  the  lowest  property  and  u4lity  taxes  in  Orange  County  

§  Loca4on  and  proximity  to  major  surrounding  businesses  and  local  employers §  Highly  undervalued  area  that  offers  excep4onal  growth  poten4al

§  Proximity  to  SunRail  Sta4on;  commuter  railway  service  in  Greater  Orlando  area §  Conway  Chain  of  Lakes  access  

Income  data  for  Belle  Isle  generated  from  Property  Report  on  MLS  

Understanding  Regional  Proper4es

Maintenance  Concerns:

•  Roofs •  Air-­‐condi4oning  Units •  Termites •  Mold

Knowing  your  property  and  understanding  the    region  it  is  located  in,  will  beRer  help  you  make  wise  choices  as  an  investor.  

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