HAVE YOU EVER THOUGHT ABOUT INVESTING IN REAL ESTATE? But you didn't know where to start, or thought it was for those "other business people"?

I have just helped a client buy a property this week, here in Kitchener for $240,000 for a LONG TERM INVESTMENT! Here is what this new property investor can expect from this property:

The purchase price was $240,000 and needed a 20% down payment ($48,000) which will usually be leveraged/borrowed (from a line of credit)

CASHFLOW: From an expected rent of $1,425/month, the monthly cashflow (in your pocket) after all expenses paid is: $350/month. Since this is a long term investment we always look at 1-5 yrs (at the very least) ahead.

In 1 year that means $4,200 ($350 x 12 month), and in 5 yrs, $21,000 cashflow

MORTGAGE PAID: Over the next 5 years the tenant(s) renting this property will be virtually paying off your mortgage. For this property the monthly mortgage amount is $712/month. $290 of that goes towards the principal. Over 5 years, that means $17,500 of the mortgage amount paid off.

APPRECIATION: This is always a guess, since no one knows how much properties will appreciate each year. A conservative estimate is 3% per year (over the next 5 years). The purchase price today for this property is $240,000, and in 5 years it will be worth $278,200. An appreciation amount of $38,200.

TOTAL PROPERTY WEALTH ACHIEVED IN 5 YEARS: (Are you sitting down) $76,700. (Cashflow + Mortgage paid + Appreciation).

There is a large demand for properties for rent fueled by a very low vacancy rate (1.8% in Kitchener/Waterloo) and an increase of jobs in our area. People are coming to the city for work and need a place to live!

Let me know if this sounds interesting to you, and I can share the system and steps needed to achieve these same results with you, like I have for the past 9 years with countless clients!

Flav Onsen
Royal LePage Wolle Realty
519-240-9119
flav@onsenhomes.com