P~
Great plan... check this guy out... I went to one of his seminars & he has some other variables that are broken down more clearly...
http://platinum.propertyshopper.com/index.php?path=investor.property.view.firstyear&agent_property_id=NDAwMTo4YmVjNjdiZWVmM2YxMzc0NDY0YmEzNWZjN2MwZjI0Yw==Oak Circle
Stockbridge, GA 30281
Built in 1997, 2 Bedroom 1 Bath.
Income Monthly AnnualGross Rent $695 $8,340
Vacancy Losses ($56) ($667)
Operating Income $639 $7,673
Expenses Monthly AnnualProperty Taxes ($97) ($1,160)
Insurance ($24) ($290)
Management Fees ($64) ($767)
Leasing/Advertising Fees $0 $0
Association Fees $0 $0
Maintenance ($21) ($250)
Other $0 $0
Operating Expenses ($206) ($2,467)
Net Performance Monthly AnnualNet Operating Income $434 $5,205
- Mortgage Payments $0 $0
= Cash Flow $434 $5,205
+ Principal Reduction $0 $0
+ First-Year Appreciation $145 $1,740
= Gross Equity Income $579 $6,945
+ Tax Savings $0 $0
= GEI w/Tax Savings $579 $6,945
He came up with "The Annual Gross Rent Multiplier" = Monthly Rent/House Value
Irvine - $3000/$1,000,000 = .3% - Bad Rental Market
Long Beach - $2500/$600,000 = .4% - Starting to be a decent Rental Market
In-Land Empire - $1800/$200,000 = .9% - Excellent
See if you can get 1% in Georgia...
Find a good Property Management Company... someday, I might hand you $25,000 for a DP for a Georgia house...!