Davidson Realty, Inc.

Davidson Speaker Series Features “Real Estate Investing & Property Management in Today’s Market”

May 13, 2010

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Posted by in Events, Speaker Series

DSC_0326Davidson Realty President Sherry Davidson and Davidson Property Manager Elsie Evans will discuss the exciting real estate investing opportunities available in today’s market, and the ins and outs of property management.  Demand for rental properties continues to increase in the Jacksonville and St. Augustine area. Explains Davidson, “The combination of extremely affordable residential pricing, low interest rates and increased rental demand is making a perfect storm for real estate investing.” The Davidson Speaker Series on real estate investing will be held at the Davidson office on Thursday, May 27th at 7:00 p.m.  Complimentary wine and snacks are served.

DSC_0209 copyA recent example of the investment opportunities available in today’s market involves a Davidson Realty agent who ended up purchasing a home this Spring for $204,000.  The home was originally purchased a few years ago for $370,000, so the savings were substantial.  The Realtor paid just over $51,000 at closing, including down payment and settlement fees. He spent just over $2,000 on expenses, such as cleaning, yard service and minor repairs prior to renting it.  He anticipates his monthly expenses, including mortgage, insurance, taxes, HOA, maintenance and rental management fee will be $1,638. He has an 18-month lease signed for $1,875 per month. Therefore, he is netting $236 each month in cash and reducing his loan principal by $225 per month.

The combination of the cash flow and the principal reduction results in an annual income of $5,542 – or over 10% return on the initial investment of the $53,000 ($51,000 at closing + $2,000 on pre-rent expenses). Of course, he is anticipating an increase in market value of the house over the next several years too, which will increase his equity in the property. This sure beats the 1.4% return his bank was offering to renew his certificate of deposit!

This is just one example of the amazing opportunities that exist in today’s market.  Join Sherry Davidson and Elsie Evans on Thursday, May 27th to learn more about real estate investing.

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