Investing In Savannah Georgia
Does anyone have any info on Savannah in regards to growth, appreciation...etc. or could recommend where I can find that info?
Thanks
Frank
[ Edited by norrist on Date 05/17/2005 ]
If that was near me I would have already signed the contract assuming the area is good and there is appreciation potential. Good luck![ Edited by ahimon on Date 05/16/2005 ]
Not the best deal I have seen. Here are my numbers:
You say you want to put a good chunk in down payment. Lets say your offer for $267k was accepted and you took a $200K mortgage with 67K down:
P&I at 7% for 200K = 15,967
taxes = 7,333
water = 1000
ins = 1157
Garbage and association = 300
Misc = 750
Total coming in = 31000
Total going out = 26507
Cash flow = 4492
Return on cash invested = 6.7% (first year)
Keep in mind that the above calculation does not take into account appreciation, mortgage pay down. What are the appreciation rates in your area? That would play an important role in deciding.
most quads cashflow the 4th unit and breakeven on 3rd on a good day.
the deal in question will make money even with 100% financing and i would jump on it instantly.
Already had talked to my banker.
Our rates would be 6.25% for .20 down
6.125 for 26% down
10% was an option. Im wanting to say it was 7.125 with no PMI.
Or PMI was 110 and it was 6.875 or something like that.
I think your expenses look a little conservative. Is there yardwork to be done etc? I would validate those expenses before deciding but pending them staying in line, I would go for this one. I think it would be a good diversification for someone in your situation that has mostly single family homes that rely more on appreciation than positive cash flow. A quad will give you some positive cash flow and make you a little less reliant on continued appreciation in your portfolio of properties. I recently purchased a similar property in my neck of the woods for $236k that is fully occupied at $595 per mo per unit. It is all brick but was built in 1946 so the maintenance on yours would be much lower. Of course taxes are less much less also. I say go for it.
I think your expenses look a little conservative. Is there yardwork to be done etc? I would validate those expenses before deciding but pending them staying in line, I would go for this one. I think it would be a good diversification for someone in your situation that has mostly single family homes that rely more on appreciation than positive cash flow. A quad will give you some positive cash flow and make you a little less reliant on continued appreciation in your portfolio of properties. I recently purchased a similar property in my neck of the woods for $236k that is fully occupied at $595 per mo per unit. It is all brick but was built in 1946 so the maintenance on yours would be much lower. Of course taxes are less much less also. I say go for it.