Sometimes is hard to wrap your head around how a rental home that costs $300,000 can possibly give you cash flow each month — above and beyond your expenses. Here’s a perfect example of an income-producing rental property that produced over $500 per month and how the numbers pan out.
Address: 31 Gale Street (Regina, SK)
Features: Excellent 1,111 square foot Bungalow located in Coronation Park with Central Air throughout. Main floor features a large living room and dining area with gleaming hardwood floors, three good-sized bedrooms, kitchen with an abundance of cabinets, a 4 piece main bath and a 2 piece en-suite both with new ceramic tile. The property is fenced and contains a large double detached garage. Some recent updates include: separate power meters for upstairs and downstairs, full basement renovation, flooring and bathroom upstairs, parging, vapour barrier, grading, sump pump, shingles and more. This spectacular property is perfect for rental income!
The basement is newly renovated and has two bedrooms, a three piece bathroom, a very spacious living area and separate entry.
Financial Analysis: 31 Gale Street, Regina, SK
There’s a $70,100 investment required for this property. You qualify for the mortgage, provide the down payment, renovation, legal and reserve fund. A service contract with 3D Real Estate makes this a true armchair investment.
|Repairs & Maintenance:||$100|
|3D Service Contract:||$500|
|Total Monthly Expenses:||$2,142|
|Monthly Cash Flow:||$508|
As you can see, you will receive cash flow of about $508 per month, a 9% cash on cash return.