Just have a quick whizz through

Viewing 3 posts - 1 through 3 (of 3 total)

Angelus
Participant
@angelus
Join Date: 2003
Post Count: 0
September 29, 2003 - 6:47 am
Haven’t had the opportunity to read Steve’s book as yet so the 11 2nd rule and such I’ve no idea on its dynamics.
However straight to the property I propose to you guys.
130,000 purchase price but could probably pick it up for 115-120,000
Weekly rent about 180-200 dollars.
Deposit of 15,000
Somebody run through that for me and tell me how it all appears?
wizard2
Member
@wizard2
Join Date: 2003
Post Count: 3
September 29, 2003 - 6:55 am
if you pick the property up for 115k your repayment per week should be around $125 per week + expences aprox $45 per week so you do the math these figs are from my own experiance depending on age of property not a lot of profit but a bit………………………………………………………………………….
quote:
Haven’t had the opportunity to read Steve’s book as yet so the 11 2nd rule and such I’ve no idea on its dynamics.
However straight to the property I propose to you guys.
130,000 purchase price but could probably pick it up for 115-120,000
Weekly rent about 180-200 dollars.
Deposit of 15,000
Somebody run through that for me and tell me how it all appears?
muppet
Member
@muppet
Join Date: 2003
Post Count: 900
September 29, 2003 - 8:33 am
Hi Angelus
it is not the 11 Sec Rule but the 11 Sec Solution.
It gives a very quick indication if the property may be a good deal.
eg weekly rent divided by 2 times 1000 = purchase price.
Therefore on your figures (ave rent) $190 divided by 2 = 95 *1000= $95000.These figures would give you about 10.4% gross yield and therefore make the property +ive cashflow.
Your figures of purchase price at $115000 would give a smaller yield and make it marginally +ive cashflow.
Regards