Posted by adam on December 21, 2005 at 12:07:52:
hey guys i came across this property near orlando florida. price is 224k. they have property mgmt company that will guarantee rent money each month whether they rent it or not. seems fishy. i have pasted some of the email below. let me know your thoughs…
Whether or not they rent out the house, they guarantee you that set amount. If they rent it out more, they keep the overage, of course. They bank on the fact that they will not lose money on the deal. Tourism is very high here, so it is not likely that the house will sit empty.
We are experiencing unprecedented appreciation rates and interest rates are still very favorable. Buying now will help assure you of tremendous equity buildup in the future. I specialize in the sale of these Vacation Homes and own them as well, so I have first hand knowledge of how valuable of an investment they really are. These investments are perfect for the person who wants to own a piece of property near Disney and have the payments offset by rental income. Or you can rent them out on an annual lease and have a steady income all year long, if you find that you are not concerned about using the property for your own vacations.
This single family home is priced thousands below any other homes for sale anywhere in this area. In addition, we have found a way to make this a carefree type of investment, by offering the Guaranteed Rental option. Sign on with the management company (Florida Team Management) and they will guarantee you $1305 a month in rental income, no matter if they rent your home or not. That takes out all of the guess work with this type of investment property. Meanwhile you can sit back and enjoy the best part of owning this kind of home - the appreciation.
Another option is to rent it out on a 12 month lease. You can get around $1100 - $1200 a month for it, and you will not have any outgoing expenses like utilities (est. $300/month), management fees ($125/month), pool care or lawn care ($160/month). This is another very popular option my clients often choose and a way to make the most money month over month.
I have a mortgage broker with a loan package of a 40 yr. adjustable rate where your total mortgage payment will only be around $975.00 a month including insurance and taxes. With this loan, the investment has a positive cash flow monthly along with the equity buildup. This is available with approved credit, of course. It requires 10% down. Or we have interest only loans with 100% financing, which are also very favorable.
The home was built in 1998, is 1150 sq. ft, and comes fully furnished and accessorized for short term rentals. It has a screen enclosed heated pool and a 1 car garage with a washer and dryer, as well.