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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Riskmgmt who wrote (82114)5/24/2007 10:40:08 AM
From: John Vosilla  Read Replies (1) of 110194
 
I just did a caluclatution on a house in SW Florida say a newer 3/2/2 with about 1600 sf living. Purchase price $135k, rents $950 month and 90% LTV with 30 year fixed rate. Well negative cash flow each year for the 12 year hold and negative $5k in year one. Appreciation and growth in rent and operating expenses of 6% per year. IRR over the hold of oI came up with is only 12% that doesn't sound too good and this is an optimistic sceario with rose colored glasses..
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