• Your cost savings will potentially be even greater than outlined above based on your tax savings you will see each year because of having paid mortgage interest.
  
  
• The analysis above does not factor in your closing costs when buying.
   
• Your "buying" costs could end up being higher than outlined above because of any property owners association fees as well as any home maintenance you would need to pay for during that time of owning the townhouse.
  

• Interior, Exterior and Aerial Photos
• 3-D Walk Through
• Floor Plans
  

Purchase Price:  $150,000
Down Payment:  20%  ($30,000)
Interest Rate on 30 year Mortgage:  4.5%
Monthly Payment:  $740 (principal, interest, taxes, insurance)

Rental Income:  $1050
Property Management:  -$105
Association Dues:  -$50
Mortgage Payment: -$740
Net Cash Flow: +$155

• $150K purchase price
  
• Assumption of 2% per year appreciation
  
• 80% financed at 4.5% over 30 years
  
• $1,050/month rental income with half a month of vacancy per year
  
• $500/year in repairs
  
• $50/month in association dues
  
• 10% management fees
  

In the first year, this investment would potentially result in....

• Positive Cash flow of $818 (benefit seen immediately)
• Tenants paying down the mortgage by $1936 (benefit seen later)
• Tax savings of $747 assuming 25% tax bracket (benefit seen annually)
• Appreciation of $3000
• Thus, a benefit of $6,501 in year one.

Over the first five years, this would potentially result in....

• Positive Cash flow of $6,600 (benefit seen immediately)
  
• Tenants paying down the mortgage by $10,610 (benefit seen later)
  
• Tax savings of $2,875 assuming 25% tax bracket (benefit seen annually)
  
• Appreciation of $15,612
  
• Thus, a benefit of $35,698 over the first five years
  

Let me know if you have questions about any or all of this, as each investor and investment scenario will look a bit different.  All that said, I believe there is a reasonable opportunity for a solid return when buying an investment property in Harrisonburg -- and I'd be happy to help you with that process if you are interested.

• In the Spring/Summer/Fall they have to compete with more owner occupant purchasers.
   
• In the Winter, many sellers are less hopeful about the likelihood of finding a buyer, and often are more flexible on price.

Of note -- this advice is most applicable to townhouse properties that might be purchased by investors or owner occupants.  This does not necessarily apply to multi-family properties or student housing properties.

If you are looking for some advice on how to get started with real estate investing, check out HarrisonburgInvestmentProperties.com.

Enjoy privacy, views and direct access to Lake Shenandoah from this well maintained Lake Pointe home with a full lower level apartment! This home offers spacious one-level living with a living room with fireplace, an eat-in kitchen, formal dining room, office, master suite, two additional bedrooms and a full bath plus an rec room (with laundry room) all on the main level. The lower level features an expansive family room with full bathroom, plenty of unfinished storage space PLUS a complete one bedroom apartment with living room, kitchen, dining area, bedroom, bathroom and clothes washer/dryer! Don't miss the immaculate, oversized garage, and the large custom-built deck looking out to the 1+ acre yard, Lake Shenandoah and Massanutten peak!