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Positive Cash Flow on First Deal

by Gary Alger, Danbury, Connecticut   

I was a wannabe real estate investor for several years, watching from the sidelines. I finally got the nerve to go out and test the market after many hours of studying and reading. The information and encouragement at CRE Online has been invaluable.

I ended up finding a condo in a nice complex (pool, tennis court) that needed some cosmetic work (paint and paper). I bought the place for $39,500 and found a mortgage broker who got me a 30-year loan with only 10% down. I borrowed the $3,950 down payment using my low interest (11%) credit union VISA card. Total payments including taxes, condo fees, mortgage, insurance and credit card payment comes to $650.

I am renting it out to a young professional for $765; an immediate cash flow of $115. In four years when my credit card payment is paid off, my cash flow will be $218. And this does not take into account annual rent increases. None of my friends are telling me now that you can't buy no money down real estate with a positive cash flow! I am looking for four more like this so I can supplement my income in four years by $1,000 a month.

 
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