We are proud to announce that our 2nd and 3rd of the 9 first students in the My Cash Flow Academy are closing on their first deals since taking the class. Our commitment is to educate you, walk you through and hold your hand in the analysis to accomplish your first deal in 6 months of taking the class. Through our community we vet and talk through the numbers on different deals, GO See properties with great returns and of course the students do their own self-directed online learning through the 12 Modules of the basics need-to-know info on investing in all types of real estate.
Student 2 is closing Tuesday on a house that will be used for student housing. It is a shell bought for $60,000 + $2000 assignment fee, will need $50,000 in work and has an ARV of $135,000. Gross cash flow starting next July will be $1400 and net cash flow will be $1000 (he will have a placeholder tenant in there at $800 per month till June student renting season starts).
The neighborhood is in hot demand as many university areas are that he will have the income and appreciation in one which is rare. Maintenance will be minimal in the future since it’s totally rebuilt.
This is a net ROI before tax benefits of 10.7% or a 31% IRR in year one. After-tax cash on cash return is around 13.91% –
If refinanced and almost all the cash he put in is taken back out, the return would be cash on cash return of $427 per month cash flow x 12 = $5124 per year divided by cash still left invested $112,000 – $97,000 = $15,000
$5124 income / $15,000 investment = 34.16% ROI before tax benefits.
Student 3 is buying a duplex for $100,000 with gross rents of $1200 and a net of $750 per month.
Both students are paying cash but could after closing get a loan (see example in Student 2 description) to increase their ROI even more.
If you would like to start your cash flow flowing, join our community by going to www.mycashflowacademy.com