Below is a sample of home prices, rent rates, and rate of returns in various areas of Sacramento County for an averaged-sized 3 bed, 2 bath home. As you can see, just the AVERAGE numbers are very attractive. And these return rates don’t even factor in loan balance reduction or home value appreciation! Tell me, are your other investments giving you this type of return? Are they as safe and tangible as real estate?
|
|
Avg. Sales Price (as of June ’11) |
Avg. Rent Income |
Estimated. Expenses* |
Annual Rate of Return** |
|
Folsom |
$265,000 |
$1,719 |
$1,253.85 |
7.83% |
|
Rancho Cordova |
$153,000 |
$1,357 |
$766.19 |
16.39% |
|
Natomas |
$153,000 |
$1,432 |
$766.19 |
18.47% |
|
Arden |
$193,000 |
$1,409 |
940.35 |
10.56% |
|
O-vale/ |
$173,000 |
$1,352 |
$853.27 |
12.40% |
|
Carmichael/ |
$211,000 |
$1,469 |
$1,018.73 |
9.36% |
|
*expenses include mortgage interest, property taxes, insurance & city/county utilities |
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**based on a 25% down payment and $5000 in immediate closing costs/repairs |
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Purchasing rental properties requires a much more analytical approach than traditional home buying. With my expertise in both the financial and sales aspects of real estate, I am well-prepared to help you become a successful real estate investor. And remember, using a Realtor to buy a home doesn’t cost you anything…the seller pays the commission. So don’t do it alone; ask me to be of service in this advantageous real estate market.
Matt Sundermier's Memos on Real Estate & on Life 