Here is an email I sent to an owner regarding a property he purchased back in the fall of 2012. He was trying to get an idea of how he had done on his property. What do you think?
|Hello Bill, Please find attached a report from 10/1/2012 - 7/1/2013. The tenant moved in on July 1, 2013, so that income shows. It shows your total expenses to that point of $60,517.73. Your purchase price was $81,000 on 10/12/2012. You paid some closing costs but I don't have the Settlement Statement with that amount readily available. I can dig that up if you like but it wouldn't have been too awful since you paid cash. Probably around the $900 range. That means your "all in" expenses on the house before it was set in to service are $142,400, more or less. Hope that helps. Now, let us have some fun. From Day 1 through Today you have spent $66,541 on expenses plus your purchase with closings costs of $81,900 totaling $148,441. You do not have the property leveraged so that is all your money in. From Day 1 through Today you have earned income of $50,100. Today's estimated value is between $175.000 to $188,000 depending on a few things. Let's say $175,000 to be conservative. I'm going to go ahead and subtract sales costs of 7.5% (for commissions, closings costs, etc) to figure our real return...which would add up to $13,125. Plus you've paid your own home owner's insurance and property taxes. I don't have those exact numbers. But let's say since October of 2012 those have added up to $12,500 ( a rough guess). Therefore, your true value is $161,875. Your "all in" minus the income you've earned is $110,841. You have invested $110,841. Your current market value is $161,875. That is a 46.0% increase in your monies. Kinda fund to figure all that, right?|