From: "M Meister" 
Newsgroups: alt.invest.real-estate
Subject: Re: Newbie real estate question
Date: Mon, 29 Dec 2003 02:40:46 GMT

You're missing:

*  Condo fee
*  Property Tax
*  Insurance
*  Maintenance Reserve.

This is an interesting puzzle.  Buying something for $75K,  sell it for $75K
and still making 33%?  What about the $15K you put down?  To me, it looks
like you are losing $8K (i.e., $15K - $7K).

MM

"AC Slater"  wrote in message
news:S3KHb.1934$wz4.961763@news4.srv.hcvlny.cv.net...
> I'm looking to do some investing in real estate... I was hoping someone
> could critique my idea:
>
> Purchase an approximately $75K Condo.  Put 15,000 down.  Assume 1000 /
month
> rent(all of which is applied toward mortage).  Given a 6% mortage rate, my
> calculations show that after 1 year, 7000 has come off the 60,000
princapal.
> If I were to sell the property then for 75K, I made approximately 7000
(lets
> say 5000 after fees).  That comes out to about 33% APR.
>
> I know I'm missing some details...what are they?
>
> Thanks for the help!
>
>
>
>