What do you mean “3 for the price of 1”?

Here is the deal

·         Purchase 3 single family homes (rehabbed, turnkey, cashflowing) as a package for $132,250.

·         Compared to actual Indianapolis single family properties (rented - 3 bedroom) of equal value ($132,000),  you can actually buy 3 rehabbed, 3 bedroom, turnkey cashflowing homes for the price of one! (actual property comparisons available upon request)

·         Per the table below, the combined rent from the “Buy 3 package” is $1,975 per month

·         In the Indianapolis market, a single family dwelling, valued at $132,000 will rent for approximately $1,250 per month

·         So for the price of the one house; you get the rent of these 3 homes which is almost 60% more income!

Numbers for the three houses in the “Buy 3” package

NOTES:

1.       Monthly Expenses include: Taxes, Insurance, 10% Management Fee

2.      NOI or Net Operating Income is Rental Income less Expenses. This is the money to pay the mortgage, if applicable

 Actual numbers from a single family 3/2 in Indianapolis

NOTES:

1.       Monthly Expenses include: Taxes, Insurance, 10% Management Fee

2.      NOI or Net Operating Income is Rental Income less Expenses. This is the money to pay the mortgage, if applicable

What are the advantages of the “Buy 3 package”?

·         Approximately 60% additional income over one single family home purchase of similar value.

·         Diversification. If the purchase of the one single family home, producing $1,250 per month stands idle for even one month, your income stream is greatly affected, not to mention your ability to pay the mortgage. With the “Buy 3 package”, if one house stands idle, you still have 2 other houses generating income while your management company gets the 3^rd house rented again.

·         Note that any two houses of the “Buy 3 package” generates about the same income as the single family house in the above example.

·         All 3 homes in the “Buy 3 package” are rented and have 12 month leases.  Each lease renews on a different month, which is another “plus” for the savvy investor. 

·         Given that each house in the “Buy 3 package” has 3 bedrooms and the rent for each is about half of that of the solo house purchase, in these uncertain economic times, your “Buy 3 package” can meet the needs of a much larger rental market.

·          For the same purchase price, your cash “return on investment” is approx. 24.9% for the “Buy 3 package” VS 5% with the one property purchase!

·          Your annual gross income with the “Buy 3 package” is approx. $21,330 VS $13,500 with the one property purchase (with all 3 rented)

PLUS, you get the following with the “Buy 3 purchase”:

·         1 year home warranty plan on EACH property

·         Property manager already in place

·         Receive our property manager discount

·         Homes have already been rehabbed and updated

·         All 3 homes  have 1 year leases in place and are “proven” cashflowing properties.  

·         Monthly profits mailed to YOU the first month of possession

What type of return on my investment or “Cash on Cash” can I expect?

First, let’s define “Cash on Cash”. “Cash on Cash” means the cash you get back (the cash the property generates for you) annually from the property compared to the amount of cash you put into the property.

In the case of the three houses above, the amount that you put into the property is your down payment (assuming there will be a mortgage on the property) plus any closing costs.  For the purpose of this discussion let’s assume you were able to finance the property with a 10% down mortgage amortized over 30 years at 7%. Let’s further assume that you brought $16,800 closing to cover the 10% down and 3% associated closing costs.

Given the suggested 30 years at 7% mortgage, your annual debt service is about $9,500. Given a monthly NOI of $1,253, your annual cash (that you get back from the property - NOI less Mortgage) could approach $5,500. But let’s figure a 10% vacancy factor on income with a full 12 months of expenses. In this case your annual cash (that you get back from the property - NOI less Mortgage) would be more like $3,100. This means that your Cash on Cash could potentially be $3,100 / $16,800 or about 18%.

If this will be a cash transaction with a quick close, then you would receive a $6,000 reduction on the sales price.  The purchase price for a cash transaction is $126,250.  The estimated annual Cash on Cash in this scenario is 10%

Note:  the above is for example purposes only and numbers may vary. 

Where would I get a mortgage for a deal like this?

At Homesite Investment Services, we work with lenders who have several investment programs to finance our buyers.  They have competitive rates too! 

Some programs allow for partial seller financing.  We are open to discussing terms of this with you, should the need arise. 

I like this idea, but can’t qualify by myself.  Is there anything I can do?

Yes, because of the nature of financing involved with this deal, you can have another person or persons participate in the loan with you. 

I don’t need a mortgage.  I will pay cash.  What’s the benefit? 

Cash buyers receive a $6,000 discount off the purchase price with a 15 day close!

How do I contact you?

We are available by email or phone. 

joan@homesiteinvestment.com

paul@homesiteinvestment.com

800-229-4019

View the property  photos and videos below to see what a “buy” this  "Buy 3 for 1" Deal is! 

 

Newly Rehabbed 3/1 IN POPULAR EAGLEDALE NEIGHBORHOOD

INDY CASH-FLOW TURNKEY RENTAL!! 

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This turnkey 3 bedroom, 1 bath single family home has been completely remodeled.  The home has a property manager with renter in place!   Eagledale Drive

 

 

 

 

 

NEWLY REHABBED INVESTMENT RENTAL

Indianapolis, IN

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This charming 3 bedroom, 1 bath single family home is completely remodeled and rent ready.  The home has a property manager and is rented with 12 month lease.  Diamond CT

 

 

 

 

 

Turnkey Indy Rental (with Renter in place)

Indianapolis, IN - near Fountain Square

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This turnkey 3 bedroom, 2 bath single family home has just been newly remodeled.  The home has a property manager with renter in place!  Minnesota Ave.