Loan for a 3 Bedroom/2 Bath Home with 2 Car Garage, 1620 sq ft

(Qualifications: The loan programs below assume a 660 or above credit score, low debt to income ratio, and ability to prove liquid assets of 10% of home purchase price. Individuals not meeting those requirements are not guaranteed the best loan programs)

Mortgage Option #1- "Interest Only" Rate of 2%
$576 Positive Monthly Cash Flow

$130,000 Sales Price
-$13,000 Deposit (10%)
$117,000 Total Mortgage

Investor Monthly Expenses:
$200 Mortgage Payment
+$74 Home Assoc Fee
+$390 Taxes and Insurance
$664 Total Monthly Expense

Rental Income:
$1377 Monthly rent (.85 per square foot X 1620)
-$137 Rental Management Fee ( 10% of $1377)
$1240 Net Rental Income

$1240 Net Rental Income
-$664 Investor Monthly Expenses
$576 Total Monthly Cash Flow


Mortgage Option #2--"Interest Only" Rate of 6.5%
$113 Positive Monthly Cash Flow
 
$130,000 Sales Price
-$13,000 Deposit (10%)
$117,000 Total Mortgage

Investor Monthly Expenses:
$663 Mortgage Payment
+$74 Home Assoc Fee
+$390 Taxes and Insurance
$1127 Total Monthly Expense

Rental Income:
$1377 Monthly rent (.85 per square foot X 1620)
-$137 Rental Management Fee ( 10% of $1377)
$1240 Net Rental Income

$1240 Net Rental Income
-$1127 Investor Monthly Expenses
$113 Net Rental Income