Buy Single Family House as investment Property----Your Net Profit

Investing in a Single-Family House—Potential Profit Analysis

Sample Investment Scenario

• Property Price: $300,000

• Down Payment (25%): $75,000

• Loan Amount: $225,000

• Estimated Monthly Payment (PITI): $1,934 (Please confirm with your lender)

Projected Monthly Income and Expenses

Monthly Rent Income

• Total Rent Collected: $2,200

• Vacancy Adjustment (5%): $80

• Gross Rent After Vacancy Adjustment: $2,120

Monthly Expenses

• Mortgage Payment (PITI): $1,934

• Maintenance: $100

• Total Expenses: $2,034

Net Monthly Income

• Monthly Net Income (after expenses): $166

Annual Return on Investment

With monthly returns including principal reduction:

• Monthly Cash Flow: $766

• Annual Cash Flow: $9192 on a $75,000 investment

Cash-on-Cash Return:
(Net Annual Income / Total Cash Invested)

• 12.25% Cash-on-Cash Return

Future Considerations

• Rent Increases: As rents increase annually, your return on investment could improve.

• Property Appreciation: If you decide to sell in 4-5 years, appreciation could further boost your overall return.

Contact Information

Puneet Bhargava
Broker Associate/Realtor
Phone: 559-274-7025
Realty Concepts
DRE Lic # 01859500 | Office DRE # 01100967
565 Pollasky Avenue, Clovis, CA 93612

Disclaimer: Figures presented are estimates for illustration. Verify numbers with your lender and perform due diligence by reviewing actual income, expenses, and maintenance records.