Heroic Investing
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$372 Cash Flow Property in Memphis

As regular readers of this blog are aware, we sometimes bring specific income property recommendations to your attention. Such is the case today. Heroic Investing’s founder, Jason Hartman, is also the driving force behind the Platinum Properties Investor Network. If you visit his website JasonHartman.com you can subscribe to his free property recommendation service and be the first to learn about great cash flow opportunities like this one in Memphis.

For those more interested in the bottom line, our calculations suggest this Whitehaven neighborhood red brick house, which was built in 2001, should provide a healthy 36% Return on Investment (ROI). To those accustomed to the comparatively anemic profit margins associated with Wall Street and the stock market, property deals like this seem too good to be true.

Believe it, because it is true. Let’s look at the deal more closely.

This 4 bedroom, 2.5 bath home includes approximately 1,452 square feet, and features a 2 car garage. Current asking price is $62,900. The down payment will be $15,725. Loan origination fees and closing costs add another $944 and $3,145 respectively, resulting in an initial cash investment of $19,814.

Now let’s get to the good part, where we show you exactly how we arrived at that $372 monthly cash flow number. Gross rent in the Memphis area is about $1,095, which equals $13,140 annually. Once we subtract operating expenses like vacancies, taxes, insurance, management fees, maintenance, etc, you’re left with a net operating income of $7,506. Subtract estimated mortgage payments of $253 from that number and you’re left with an annual positive cash flow of $4,467 or $372 per month. That’s a cash on cash return of 23% and total return on investment of 36%

Sometimes this many numbers can be a little mind numbing but the Big Idea to focus on is that the reality behind them can hold the key to a comfortable financial future for those savvy enough to spend a bit of time studying them. It’s certainly not rocket science. The concepts of understanding and implementing the strategies behind the incredible profit potential of income property investing are within the grasp of almost anyone.

More information on this particular Memphis property can be found here.

The Heroic Investing Team

 

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