Investing Numbers, Do yours stack up?

Hello

I see people talk about returns and use ROI including and excluding different figures. Here I would like to show you mine and a chance for you to show fellow investors and myself yours.

I have some experience in Michigan with existing investments and just supported some fellow investors so the information I have is quite current and know it would stand up to any test.

As seen in Michigan, MLS paperwork kept from last trip in March / April

17559 Santa Barbara Dr Ask me for the image if you wish to see this wonderful property (It has been sold)
Offered at $17,000 I would have offered $20,000
Rehab est $3,000 this property was in good condition
Solid brick 4 bedroom, 3 bathrooms
Very nice street appeal and location
2006 estimated value was in excess of $150,000
Taxes / Rates listed at $422pa let's account for a rise and say $2,500
Rental income $1,050pm
Management 10%
Always estimate an additional 10% for maintenance when investing to be on the safe side
Insurance $1,100pa insured for $120,000 minimum with all the extras.
purchase costs buying it from the bank is about $500 let's say $1,000 with inspections to be safe

I think that's about all the numbers?
OK lets set a ROI rule for all to use under this topic.
Rent pa $12,600 divide this by your initial cost property + rehab + purchase costs = $24,000
Do we have the same ROI 52% ?
So how much will it pay you per month?

Rent $1050 –
Insurance $91
Maintenance $105
Management $105
Taxes / Rates $166
Loan repayments on $24,000 @ 7% P&I over 25 years $170
Result NETT $413.00pm

20% NETT return over and above the loan repayments and all costs including allowing for maintenance.

Now don't get me started on the capital growth potential the value on the with a tenant and rehab competed would double your money straight up with any market movement just for starters.
You would have a tenant in a home like this within 3 weeks on a twelve month lease no problems.

Just imagine buying in Australia in our market, the stamp duty alone cost more than this deal on a property here.