Charlotte- Model Home Investment, At the Right Price
A South Charlotte Model Home Investment That Makes Sense
Ryan Homes came to us with a model home, the model above but to be built, investment/rent back that is on the right track–what it is Not is an overpriced house, you’ll never be able to resell.
The Ryan home for sale is located in the new community of Ballanmoor, across the street from the very popular Ardrey Kell High School, next to Ardrey, in one of Mecklenburg County’s best school clusters.
The Ryan Base Price of the Genevieve, with the four extensions: Morning Room, Sitting Room, Bonus and Inlaw Suite- the Base price is $535,900 on 4,460 square foot. They have added $100,000 + in options, so it will be a beautiful home. At $600,000, it would be $134/sf.
The average cost per square foot of homes sold in 28277 for the first quarter of 2009? $116/sf. However the upper end range went as high as $200/sf in the better Ballantyne, $150/sf in “lesser Ballantyne.” Ballantyne is 5 minutes away, and 28277 is the highest income zip code in the greater Charlotte area…$134/sf is not out of line.
Ryan is asking $499,900 on this Genevieve, or $112/sf, loaded to the hilt. So lets look at the numbers:
At 112/sf, a fully optioned home, in a great location. They are also offering $3920 in rent per month and a one year lease ( we’d ask for 3!) So doing some quick math, buy at $495,000, 20% DP, is $99,000, so the loan amount is $396,000 , and current investment financing for a borrower with a FICO of 720 or greater is 6 7/8% the payment would be 2600/month, principal and interest. Add in taxes and insurance, say 600 per month, for a total of 3200/month. They are offering 12 months rent of $3950.
Ryan has a plan to buy the rate down further, to get your payment down to more like 2900/mo, piti. So, your net is between $700-$1000 per month, or 8.4- 12%, how does that compare with your money market? And you can buy this out of a self-directed IRA, see your accountant for details, your deductions and depreciation options to help you do better yet…
So what would we offer? Your call, but I’d look for a little more rent, and more months, and less on the purchase price, though I think $112/sf is a deal once you see th options, and I don’t think appraisal will be an issue here.
Call me at 704-351-1519 for more details.
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