Rent vs. invest

Bill ButlerOICP, CDPERE/MAX Leading EdgeBoston Area@[email protected]

Do you have clients with children going to school in

Boston?

Provide Added Value to Your Clients by recommending a

Real Estate Investment vs. Renting

Receive 25% referral fee

Rental Cost 4 Years Investment Return 4 Years ($52,800)* $121,215**

Effective 4-Year Return on Investment:

$174,015***

*Avg. 1BR rental $1100/mo. near university campuses**Based upon cash purchase of an “average” 2-Family Property near university campuses***Does not include any additional tax benefits

Investing isn’t for everyone. Call me to discuss your

client’s needs.

PURCHASE 2-Family House/Duplex2 units - 1BR/1BTH, 3BR/1BTH

Purchase Price: $475,000Occupy 1BR unit

Taxes: $5000/yr x 4 years = $20,000Repairs: $500/mo. x 48 mos = $24,000

RENTAL INCOME 3BR unit for $2200/mo. x 48 = $105,600NET OPERATING INCOME (4 years) = $61,600

Appreciation: 3% x 4 years = $534,615GAIN: $59,615 - $44,000 operating costs = $15,615 NET

Equity GAIN of $15,615 + $105,600 Rental Income = $121,215NET GAIN of $174,015 vs. Renting

AssumptionsMade on Market Averages, Subject

to Change

RENT 1BR apartment $1100/mo. x 48 months = $52,800

LOSS: $52,800Assuming NO increase in rent

PURCHASE 1BR condominiumPurchase Price: $225,000

Taxes: $2500/yr x 4 years = $10,000Condo fee: $200/mo. x 48 months = $9600

Repairs: $25/mo. x 48 months = $1,200Appreciation: 3% x 4 years = $253,228

GAIN: $28,228 - $20,800 operating costs = $7428 NET GAIN of $60,228 vs. Renting