Here’s how to make $100,000 work for you in a Real Estate Investment!
Do you have $100,000 in your savings or money market account earning 2% interest, 4% interest? If you do, let’s compare these earnings with a real estate investment!
Safe and secure in the bank, passively earning 2% will net you $1400 per year after taxes (assuming 30% tax bracket). Let’s also look at a 4% return, this will net $2800 after taxes (again assuming 30% tax bracket).
Now let’s put this $100,000 to work in a 3 level, 1 car garage townhouse in Winchester or maybe Fredericksburg. Acquisition price of $215,000 and negotiating 2% Seller paid closing costs for this acquisition and financing at 4.875%, the additional closing costs. Purchasing with a loan of…