Lest any of our readers out there get the impression we’re sitting up here in the big chair dispensing investment advice out one side of our mouth while ignoring it with the other – here’s food for thought.
Our fearless leader, Jason, recently disclosed details about an income property he personally purchased in the Kansas City area two years ago. There’s nothing special about this four-plex except it is one of many tremendous investment opportunities. A property like this could very easily be yours in the near future.
Let’s analyze some stats. Jason’s Kansas City property is 5,300 square feet. He purchased it for $115,000 and put 20% down. The positive cash flow is $404 per month. The annual Return On Investment is 34%. Like Jason says, don’t try that in a mutual fund. If you qualify for the available additional tax benefits, your ROI goes up to 36%. Another perk is the seller paid for property management for 24 months.
That, my friends, is a heck of a deal but the kind of deal we see come across our desks every day. The great thing about this sort of investing is that no scheming Bernie Madoff type character can come along and scam you out of your money because you’re a direct investor and control the asset yourself.
And what if something completely unforeseen goes wrong and your ROI only brings in half of the projection. You’re still looking at a 17% return. Here’s another Jasonism: At the very least, income property sucks less than anything else. At best, it’s a grand slam.
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