If I bought 4 years ago for $ 134,550 renovated and with an immediate tenant. Do not sell today…
If I bought 4 years ago for $ 134,550 renovated and with an immediate tenant. Today can probably not sell at $ 160- $ 170K from this decreased of course agent fee 5% in my case and closing, I received over the years about $ 8.4 annual net salary. Did I make a good deal? Reasonable? And there is of course the screen.
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Transaction analysis
Purchase price: $ 135 thousand
Annual Revenue: $ 8.4 thousand (after expenses)
After 4 years:
Revenue from Shachad: $ 25 (I guess it's after taxes)
Market value: $ 165 thousand
Selling cost about 8% = $ 13 thousand
Profit from sale: 165-13-135 = $ 17 thousand
* 25% capital gains tax = $ 4.25 thousand
In summary, you have $ 25 + $ 12.75 = $ 37.75 thousand
Total in 4 years your money worked and made 28% on the invested capital
About 7% annually
Is it good or not?
The truth is that the answer lies in you and the alternatives that were at that point in time.
Nowadays it is possible to generate high profits from it, but not every transaction is just the numbers talking.
From a quick calculation you made a cumulative almost 8% before tax. This is certainly reasonable, especially given the relative passivity of the strategy. Well done.
Hi Edna, note that in a sale, the closing costs are usually on the seller (including state tax from the sale), so you will have to add the closing costs to the 5% brokerage costs as well (check how much it is in the country you are selling, usually between 2.5-4%) . lots of success!!!