Archives for: November 2008, 04
An Analysis of 2.8% Appreciation Rate in Loveland
November 4th, 2008Here's another Loveland property that was submitted by a user that we will use as a teaching tool for our Loveland, Colorado Real Estate Resources real estate investors. The property address, in case you want to look into it in more detail is: 221 Garfield Ave, Loveland, CO 80537.
In this particular example, let's take a look at what happens to the value of the property over a number of years from appreciation.
| Years From Now | Value |
| Assumed Appreciation Rate: 2.8% | |
| At Purchase | $92,520 |
| Year 1 | $95,111 |
| Year 2 | $97,774 |
| Year 3 | $100,511 |
| Year 4 | $103,326 |
| Year 5 | $106,219 |
| Year 6 | $109,193 |
| Year 7 | $112,250 |
| Year 8 | $115,393 |
| Year 9 | $118,624 |
As you can see from the table above, if we assume an appreciation rate of 2.8% per year, then the property value eventually reaches $118,624 after 10 years.
Do you want to get a bigger paycheck when you buy your next rental property in Loveland? If yes, you might be interested in the strategies shared on Jassen's CD Get Paid To Buy Houses - Collect Cash at Closing.
Sincerely,
James
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Investing in Rental Properties - Why It's A Long Term Game
November 4th, 2008In some ways, rental properties are like reptiles. They don't need to be fed every day, but periodically, they do require a rather substantial meal.
For example, let's say that you have a pretty decent rental with about $200 per month in positive cash flow. Great! That's $2,400 extra dollars of income a year! But...not so fast. This extra money is critical to your success as an investor, but it should be looked at as part of the reserve you should keep on hand to feed your rental when it gets hungry.
So, let's say that in your pretty decent rental, you have a pretty decent tenant that pays their rent on time every month for two years. Great! That's $4,800 extra dollars in the bank. But, like I said before, not so fast. During these two years, you were only plagued periodically with small maintenance items. There was a little trouble with some ants which cost you $95 in pest control. Then the plumber had to pay a visit - that was $200. And, of course, the furnace needed to be serviced which ran you close to $300.
Still, not so bad, $595 from your $4,800 leaves you up $4,205. But then
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