Updated over 7 years ago on .
What would you do if you were to make a choice
Pls help and thanks in advance :) What would you do if you were to make a choice between option A and option B and and WHY
Purchase Price $ 141.750
Improvements $ 6.000
Closing Costs $ 2.250
Total Cost $ 150.000
Downpayment: 0% (cash acquisition)
Cash outlay: € 1.000
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After 24 months from completion, here are my two options:
#OPTION A (FIX and FLIX)
Selling the property for € 205.000
#OPTION B (BRRRRR)
Refinance for € 150.000 leaving € 1.000 cash outlay and renting the property. Here are some data based on my simulation;
1st Year
Gross income: € 10.368
Total expenses: € 2.552
NOI: € 1.568
Mortgage payment: € 7.159 (30year at 2.55% fix rate)
Total cash flow: € 657,00
Cash ROI 65,70%
Equity accrued: € 3.373
Total return: € 4.030
Total ROI 403,03%
Capitalization Rate 5,18%
GRM 13,98
DSCR n/a
Tax rate in Italy at: 26%