Candi Munguia's Blog on Flower Mound and Lewisville Homes

How would you like mailbox money coming to you every month, regardless of what the market is doing? Investing in Real Estate can help you strengthen your portfolio and build wealth by owning property that delivers growth and income! Increase the return you get on your investments by becoming a Real Estate Investor.

Here is an example of a potential return of 10.3%, based on purchasing a single family home for $100,000 with a $25,000 downpayment (25%).

Getting a 15 year loan at 3.5%, with $2,500 in annual property taxes and $900 in annual property insurance, your monthly payments will be $819.50 ($9,834.00 per year).

If you lease this home for $1,150 per month ($13,800 per year), and pay a property manager 10% of the rent collected ($1,380 per year) to take care of marketing and tenant relations, you will have $12,420 in rental income for the year.

When you take the $12,420 in rental income and subtract the $9,834 in mortgage payments (principal, interest, taxes, and insurance), you end up netting $2,586 each year. With your total investment amount of $25,000, $2,586 divided by $25,000 gives you a return of 10.3%!

In 15 years, your renters have paid off your mortgage, too! So that means in year 16, your return on your $25,000 investment soars to 36.1% per year, while taking into account that you will still have annual property taxes and insurance!

Of course, this is supposing that you keep the rent steady at $1,150 and never increase it along the way (which you will probably do as inflation allows). And, it also supposes no additional repairs or other expenses (which you will certainly have through the years). But, you can put your own figures to it and see how it works out (I’ll be glad to help!). I think a good goal would be to get a rate of return of at least 8% to 12% during the years you carry a mortgage. Can you count on that from the stock market and mutual funds?

Contact me and I’ll be glad to assist you in becoming a Real Estate Investor! Each home and each neighborhood is different, but we’ll work together through the potential homes available, the likely rental income and the likely expenses to find what fits your investment goals.