Buy A Rental House In Austin Metro

This Deal Offers 15% Cash on Cash Return and $350/Month Net Cashflow

Here is a little gem of an investment property in one of Austin's popular suburbs. It offers an instant $350/month NET cash flow after loan payments and expenses and 15% cash on cash return to boot.

With a rapidly increasing demand from both local and out of area investors, deals like these are getting harder and harder to find.

Purchase

Price: $110,000
Down payment: $27,500 (25%)
Conventional loan: $82,500 @ 5% fixed, 30 years
Monthly Payment: $442.88 (principal & interest)
Taxes & Insurance: ~$300/mo
Total Monthly: $742.88 PITI payments (principal, interest, taxes and insurance)

Rental Cashflow

Rent: $1,250/month
NET Monthly Cashflow: ~500/month (before expenses)
Repairs & Mgmt: ~$150/month (expenses are estimated, actual expenses may vary)
NET Monthly Cashflow: ~350/month (after expenses)
Annual Cashflow: ~$4,200

Cash on Cash Return on Downpayment: 15% after expenses

And if you consider an upside potential from today's growing housing demand in Austin you'll understand why investors are flocking to the Austin metro to snap up deals like this. That's also why these deals are getting extremely hard to find.

 

Want Your Own Piece Of Austin's Growing Economy?

During last decade Austin has been an unyielding contender for the top place on America's best cities to live in, and one of the fastest growing cities in the country. The city appears to be poised to continue with this trend in 2012 and beyond.

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