This property is up for grabs, and it is in the middle of downtown. Rents in this area are insane, but any beach commuter would know that it is worth the cost. Plus, this area is an up-and-comer area for newly independent professionals and students alike (two colleges are in the vicinity). The listing price is $329,000, for a two-bedroom unit and a one-bedroom unit. An average investor is looking at roughly $1625/mo mortgage payment (assuming a 25% down payment and 4.5% interest on the loan). As mentioned, the rents more than cover the cost (see rates) with the average of a one-bedroom and a two-bedroom being $1300 and $1700 respectively. The rents almost double the mortgage. With taking into account a vacancy rate and maintenance, the rate of return on this property is greater than 10% a year. For more accurate accounts… find me.
NOTE: ALL PROPERTIES MENTIONED IN THIS BLOG ARE ACTIVE AS OF THE POSTING DATE