John and Rachel (not their real names) told me that they were ready to invest in a property some time in May of 2012. They were thinking of investing in properties for a while to fund their two children’s college tuition. When I told them that I had a client who was looking for a rental house in Dublin in the end of May, they got right on to get a pre-approval from a lender. By the time when the tenant-to-be decided on a condo and John and Rachel made an offer, the property had already received an offer from another buyer… We put a backup offer and waited until the tenant-to-be found another property that he liked.
On June 1st, John and Rachel made an offer to a single family home also in Dublin to which this tenant-to-be decided to write a 3 year lease. We exchanged several counter offers and went into contract on June 6 : ) The tenant’s time line was to move into the home asap so he could call his family in from Japan before the his son and daughter’s school year would start. An inspection was ordered right away and repairs were made by the Seller. A lease agreement was signed with the tenant before closing. John and Rachel closed the house on July 19 and the tenant moved in right after.
John and Rachel recalls the time when they lived in Japan. They know how hard it could be to live in a foreign country. They are very happy to be able to return the favor that they received in Japan. John and Rachel plan to continue investing in more properties and to be good landlords to more families.
【4 Bed/2.5 Bath/2 Car Garage Single Family Home in Dublin】
Purchase price: $205,900
cash investment $50,559
10 year forecast of the investment
cap rate/year (NOI) 6% (first 7 years) and 7% (8th year on)
pay off comes in the 4th year
capital return on investment after tax $41,859
after tax income of $67,391
an approximate annualized return: 12%
【Comments from John and Rachel about me】
