PROPERTY RETURNS INFO
 ash-on-Cash Return on Investment is the big difference these properties offer over most ordinary income-generating real estate.
On any real estate investment we typically look at three major sources for ROI. The first is property appreciation. The houses we are offering you have a jump start in the fact that most of the appraisals are typically higher then the purchase price. This equals instant equity. Please note, we do not guarantee any appraised values, but they typically look very favorable.
The other part of the appreciation equation is future appreciation. We've all seen the dramatic gains of properties on the West Coast and we've all heard that they may not continue at that same dramatic rate. Dallas, however, is predicted to appreciate at a higher rate then most other cities in the nation over the next 15 years.
The second source of returns from investment real estate is the tax benefit, particularly depreciation allowance. Because land costs are low, about 80-90% of your purchase price is for the building itself, not the land. Since land is not depreciable, but all of the improvements (buildings and equipment) are, you get a depreciation allowance on about 80-90% of your investment. That compares very favorably to most other areas of the country in which only 50%, or sometimes as little as 30% of your investment is for improvements and the rest for land. The net is that the tax benefits from buying these houses is several times greater than the benefit would be from buying an equivalent-priced property elsewhere. These houses will typically produce a depreciation allowance of over $3,600/year. When that is added to the other business expenses for interest, taxes, repairs, management, etc. the result is a "taxable loss" on your 1040 even though the property may be producing positive cash flow and appreciating in value..
The third major source of ROI is cashflow. These houses are built with the highest possible cashflow in mind. See the chart below for the estimated cashflow projection. Please note, this does not include appreciation. You may click on the link below the cashflow projections to see a detailed calculation that does also show appreciation. NOTE: These houses may be bought either with or without the Guaranteed Rent Option. There are cashflow projections below for both options. |
