I have a listing that was put back on the market this past week as the buyer wasn't able to complete the sale.  While an owner occupant can certainly buy it, the house would make a good rental property.  Located just off of I-35 and William Cannon, this home has had positive cash flow for the current owner.  The 4 bedroom, 2.1 bathroom house has 2018 square feet of living space. 

With a price of $115,000, the mortgage amount would be $92,000 if you put 20% down.  At a 5% interest rate for 30 years, the monthly principal and interest payment is $494.  The payment on a 15-year mortgage at 4.75% is $716.  The taxes are $3,044 or $254 per month.  Presume $100 monthly for insurance, which is likely on the high side.  The HOA dues are $15 per month.  That brings the total payments to $863 for a 30-year mortgage and $1,085 for a 15-year mortgage.  The great news is that the rental rates for the past three years have been between $1,400 and $1,495.  That's right - this house is cash flow positive from day one!

This house is a short sale, but I have experience in short sales and expect to be able to get approval in less than 45 days.  The bank previously agreed to a sales price of $115,000 with a previous buyer so they should do the same with any new buyers (though I can't guarantee it).  The owner may consider allowing the buyer to offer it for rent before the closing allowing you to have a tenant as soon as you own it.  This is a great opportunity to start your investment portfolio or to add to it.  For more information on the house at 2408 Magin Meadow Drive, Austin, TX 78744, click here.  To schedule a showing or ask any questions, you can reach me via email, online form, or at 512-735-7200.

If you are interesting in learning about investing in real estate, I am offering a series of classes this year.  Click here for more information.