20% Down Payment to Break Even?
June 18th, 2008 categories: Buying Honolulu Real Estate
This 3 bedroom 1.5 bathroom condominium is offered at $249,000. It has an interior square footage of 1113 square feet, as well as a large lanai with views of Kapolei. The unit needs work and the price reflects the room for you to invest your time and energy to make the unit the way you like it. Prior to filing bankruptcy, the owner installed a new sliding glass door, new kitchen cabinets and an extra deep Kohler tub. I checked with a local property manager and he felt that the unit would rent in a range between $1,700 and $1,900 per month. The following is a brief analysis of a possible investment scenario based on a rental rate of $1,800 per month.
Monthly Expenses
Maintenance fee $342
Property Taxes $86
General Excise Tax $85
Total $513
Monthly Rent $1,800
Less Expenses $513
Net Income Before Mortgage Payments $1,287
An investor mortgage payment of $1,287 at 6.5%, amortized over 30 years will carry a mortgage of $203,600.
Based on a 20% down payment, as required by most lender for an investor, a buyer could get a loan of $199,200. This means that the property is very close to a true break even.
Makakilo Gardens is a nice project located about 1/3 of the way up the hill to Makakilo. It is very close to dining, shopping and entertainment. Hard to believe you can get this sort of investment on Oahu. Call me at 808-737-2093 or toll free at 877-737-2093 to see if this might meet your investment needs.
CLICK HERE FOR A CURRENT LIST OF SALES AT MAKAKILO GARDENS.
Note-please don’t rely on this information to make your investment decision. Make sure that you confirm the validity of the numbers contained in this analysis.
