North Little Rock, AR
North Little Rock, AR 72114
We purchased this house for $12,000 cash and put $4,500 into it to fix it up. We then sold it to an end user on for $40,000 under the following terms. After paying $2,000 as a down payment, we lent the borrower $38,000 at 9.5% interest for 20 years. He is paying $354.21 per month. He is also paying $103.49 per month in an escrow account for taxes and Insurance.
$354.21x8 months + $2,000 down pymt = $4,833.68 /$16,500 ($12,000+$4,500) = 29%ROI first year. $354.21x12 months /$16,500 = 26% ROI.