Totally new to the Real Estate and I am really struggling to understand how people make money in real estate. Assume I am buying a property and following are the details:
Price: $310000
Down payment: 25%
Mortgage Term: 30 years
Mortgage Rate: 5.99%
Closing Costs: $15000
HOA: $225/month
Tax: $5000/year
Insurance: $407/Year
If I plan to sell this house in 4 years, what should be the selling cost to breakeven? What all should I include in the cost part? If I include the interest paid, HOA, buying closing costs, selling closing costs and all that, this property should reach $450k for me to even break even? That's more than 7.5% appreciation annually.
I haven't even included the upgrade costs and maintenance cost in this calculations. What am I missing?
How to calculate break-even Price to sell in 4 years?
byu/RexSecundus inrealestateinvesting
Posted by RexSecundus
1 Comment
1- Are you buying a primary residence or renting this place out?
2- Usually 5 ish years is about the break even point for buying being worth it.