A rent-to-own property generates $9,600 annual income. After $1,200 in taxes, $960 in property manager fees, and $2,400 principal credit to the tenant, you're left with $7,440 positive cash flow, or about $600 monthly tax-free into a CESA account.
$1,200 per year.
$80 per month, $960 per year.
$2,160 per year.
$9,600 per year.
$7,440 per year.
There are some expenses. Taxes are $1,200 a year and we're paying a property manager just to collect the money and distribute the funds. $80 a month. So that's $960 a year. 2160 in expenses. Now there's no maintenance and all that because it's a rent to own. When it's a rent to own, the person is actually going to do the maintenance. Light bulbs and the furnace goes out, which is a brand new furnace, and all that stuff don't have any expenses. 2160 you bringing in 9600 a year. That brings you to a total of $7,440 of positive cash flow. It's pretty neat. And remember, we're giving them a $2,400 a year credit towards the principal. So what does that come down to? 40.05So you're going to make $600 a month free and clear, going directly into your Sessa account, tax free.
