foreclosures and short sales
Foreclosures and short sales of investment properties not only represent great opportunities for bargain hunters, but investment real estate profitability can be greatly enhanced by prudent investment in foreclosure and short sale properties.
A Pigeon Forge Tennessee foreclosure purchase opportunity of an income producing rental home is shown below. This investment pro forma statement is made more reliable by the strength of actual property earnings and actual foreclosure sale pricing being incorporated into the figures. It is easy to see that investment properties with proven track records of rental earnings are serious opportunities for strong financial returns under short sale and foreclosure pricing.
Eden Crest Properties is the leader is selecting investment properties that either have proven track records of high rental earnings, or show the potential to earn well, based on our years of experience in successful rental management operations. Since we know our guests’ preferences in rental homes first hand, we can easily pass that knowledge on to our real estate investment clients.
Don’t forget to let the investment real estate experts at Eden Crest show you how to roll your IRA funds into these investment properties to gain the best advantages of both you IRA tax benefits and foreclosure and short sale properties.
| Pro-Forma | |
| One Bedroom with pool | |
| Gross Rental Revenue | $66,626 |
| Purchase | $194,500 |
| Percent Down | 20% |
| Initial Out of Pocket Investment | $38,900 |
| Amount Financed | $155,600 |
| Annualized Expenses | $18,828 |
| Projected Gross Income To Owner | $39,976 |
| *note: projected rental income is based on past performance, but is not guaranteed* | |
| Approximate Annual Appreciation of 6% | $11,670 |
| Tax Deduction | |
| Tax Deduction | $8,200 |
| Tax Bracket | 30% |
| Net Tax Benefit | $2,460 |
| Summary | |
| Rental Income | $39,976 |
| Net Tax Benefit | $2,460 |
| Annual Expenses | ($18,828) |
| Net To Owner | $23,608 |
| *I am not a tax attorney or practicing CPA. You should seek their professional advice on you own. This information is based on information supplied to us by individuals in the rental business. | |