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How Fortune Came To Mr and Mrs Investor
Ok, maybe not a fortune now but a start on the road to financial freedom
3 sales in Barrie in September highlight how financial freedom can be achieved through investment property.
These are actual figures and a portfolio made up of income generating properties such as these could mean waving goodbye to the day job 
Remember as well as the positive cash flow, the mortgage is being paid down and the home should increase in vale over the medium to long term.
Property 1
Purchase price $186,000
Monthly mortgage $747.99 based on 10% down fixed for 3 years at 3.65%.
Monthly property tax $183.33
Monthly insurance $44
Monthly rent $1,150 plus utilities. Home was already tenanted so no void period.
Positive cash flow $174.68 per month.
The rent could be $1,175 or $1,200 but the investor was happy to keep the existing tenants on at $1,150. They had already lived in the house for 3 years, took immaculate care of the property and ensured no void period from day 1.
Property 2
Purchase price $179,000
Monthly mortgage $787 based on 10% down fixed for 4 years at 4.09%.
Monthly property tax $186
Monthly insurance $40
Monthly rent $1,500 plus utilities. We ensured the Agreement of Purchase and Sale had a condition for the buyer to be able to advertise and show the home before closing. The property is near Georgian College and was rented to a mature student with children who moved in on closing day.
Positive cash flow $487 per month.
Property 3
Purchase price $192,000
Monthly mortgage $516 based on 10% down with variable rate of 2.65%.
Monthly property tax $200.
Monthly insurance $50
Monthly rent $1,200. Home was already tenanted so no void period.
Positive cash flow $434.
Down payments were made with money from a line of credit secured against the buyers’ primary residence. Interest rates on LOC’s vary but for an average we can say 1% above prime: 3.25%. Again as an average we can say down payment plus closing costs etc totaled $21,000. The monthly interest payment would be $56 per month. Still leaving a very healthy positive cash flow and only equal to an extra large Tim’s each day
If you have equity in you home then the road to financial freedom is available for the cost of an extra large Tim’s each day ( although the rent will cover the LOC interest as well.)
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