Business Opportunities - Long Term

Long term monthly yield investments. Purchasing a property with intentions of renting it, thus achieving a positive monthly cash flow and the ability to gain the equity by selling the property after a few years.

This type of investment requires 20% down payment in order to achieve the optimum funding possibility.

Long term model:

4 family building in Harlem, NY

Purchasing for $800,000 (while the building was evaluated for $950,000).

Closing cost - $40,000 (5%).

Down payment - $168,000 (20% out of $840,000).

Loan amount - $672,000.

Monthly payment: Mortgage - $3,640 (interest only).

Taxes -$500

Insurance - $300

Total monthly payment:$4,440

Monthly income: each apartment provides monthly income of $1,550.

Total monthly income of $6,200.

Therefore, there is a Positive Cash Flow of $1,760 each month.

Annually yield:

PCF*12 / DP = 1,760*12 / 168,000 = 12.5%

This model refers to a property that repays the initial investment within 8 years and produce equity.