Well approximately one year after seriously thinking about USA property, 6 months of solid research, an over-priced trip to the US and countless printing/scanning/phone calls & emailing – I have finally settled on my first US property purchase!!!
Details? (All in US Dollars)
Purchase Costs
Purchase price: $87,000
Closing costs: $895 (Including $260 in bank-related money transfer costs, grr…)
Insurance: $783 p.a.
Warranty insurance: $420 p.a.
Rent Details
Rent: $1150/month
Property management: 10% per month
Leasing fee: Free for first tenant ($720 next time it is required)Gross Return: 15.86%
Nett Return: ? I don't calculate nett return until after each year, who knows what will happen during the year! Hoping 10% will be nice.
Costs I do not take in to account:
My trip to the USA (Approx. $4,500) – it also doubled as a holiday and hard to justify calculating in to the price each year. I plan on buying multiple properties prior to returning to the US again.LLC, EIN, ITIN, bank account set up ($2,500) – As a once off fixed cost, it is hard to work in to calculations, I also plan on buying multiple properties under the same LLC.
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First house was easy to finance. Second I think I can pull off by end of this year/start of next. Third house? I'm going to have trouble here – anyone interested in working together on US property i'd love to hear from you…
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Congrats on your purchase… a long and winding road huh !
Where did you buy ? Did you do it yourself or with buyers agent assistance ?
Look forward to hearing how it all goes
All the best and well done !!
I read your blog you brought in Dallas, a very good city.
The biggest problem is to find reliable people to work with. I have a full time business partner in San Antonio I find that works Well. Did you have a contact there or did you work with agents?Nigel Kibel | Property Know How
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RickH wrote:Congrats on your purchase… a long and winding road huh !Where did you buy ? Did you do it yourself or with buyers agent assistance ?
Look forward to hearing how it all goes
All the best and well done !!
I bought in Dallas, Texas. I used a sort of unorthodox method using a combination of a realtor and a turn-key investment company (US based).
Thanks for the well wishes
nice to hear someone talk about realistic NET returns of 10%.
Hope it works well for you
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