Are you considering becoming a landlord? Here’s a real world example of a real estate property you can buy for investment now.
A 2 bedroom, 2 bathroom condo in a popular area of Oceanside can be purchased for about $150,000. A 20% down payment is required for a non-owner occupied purchase – that‘s $30,000 down leaving a mortgage loan of $120,000.
A breakdown of your monthly payments is as follows:
P & I: $572.90 (principle and interest payments based on 4% fixed interest rate)
Taxes: $156.25 (1.25% estimated annually divided by 12 months)
Insurance: $30.00 (hazard insurance – lender required)
H.O. A fees: $300.00 (Homeowner Association fees for pool, building maintenance, etc.)
Total/mo. payment $1059.15
These units typically rent for about $1250.00. That’s a total monthly income of about $200. Now you’re a landlord and have the opportunity to gain equity in the property. The same condos sold for $250,000 just a few years ago.
This investment also affords the tax benefits associated with property ownership like mortgage interest deduction. We recommend consulting your CPA to determine the tax benefit to you.
You might consider investing with a friend or relative. You’d split half the down payment and half the responsibility. Here’s information about the benefits of owning rental property
If you have question, or need to go over some ideas about investing in properties in Vista, Oceanside, San Marcos, etc. I can help. I enjoy talking about the different areas and which ones have seen appreciation already this year. If you need a list of condos or townhomes available in a certain area, I can email you and keep you posted on new condos or townhomes as they come up for sale in the North County San Diego area.
Contact me: Nancy Irwin 760-533-1119
Buyer’s Agent for Cristine Clark
The Cristine Clark Team at Realty Executives, Vista