Typical expenses involved with purchase.
Aprox. Purchase price:
$250,000
Downpayment: 10% = $25,000
less upgrades
Aprox. Closing costs:
$6,000-$7,000 when a mortgage is used, less cost with
larger down payment.
Aprox. Closing costs:
$3,400 when cash is used (no doc stamps on the mtg.)
Real Estate taxes: 1.25-1.5%
of new home sale price depending on the county.
Taxes will be escrowed
for the remainder of the year and can be escrowed
for the 2nd year or paid by purchaser. Taxes are paid
in arrears.
Listing and selling commission
upon resale of subject property by Realtor: 3% if
I sell myself, 5% total if co-brokered with another
Realtor.
3-5% = $12,000 average
on $320,000 home.
To MAXIMIZE return on
investment, it is best to rent the home for 12+ months
while more developer units are built.
Refer to the example
pages for typical and most recent scenarios of the
GREAT returns on your investment.
