Do you own (and live in) a townhouse in the City of Harrisonburg?


Do you own (and live in) a townhouse in the City of Harrisonburg?
By Scott Rogers • May 19, 2011
Do you like playing Monopoly? If you bought a townhouse between 2000 and 2005 in the City of Harrisonburg (perhaps in Liberty Square, Beacon Hill, Avalon Woods or Harmony Heights) I would encourage you to check with a lender to see if you can buy a second townhouse. I have many clients who bought two-level townhomes between 2000 and 2005 and bought them for anywhere between $100K and $125K. As a result, their mortgage payments are somewhere in the neighborhood of $700/month including principal, interest, taxes, insurance, and homeowners association dues. ($115K purchase price, 100% financing at 4.5% over 30 years) That townhouse can very likely be rented in the current market for $850/month to $900/month. There continue to be isolated opportunities to buy re-sale townhouses in these same neighborhoods for around $125K to $140K. The new mortgage payment could thus be around $800/month including principal, interest, taxes, insurance, and homeowners association dues. ($135K purchase price, 96.5% financing at 4.75% over 30 years) Monthly cash flow now: Mortgage payment (etc) = -$700 Total cost = $700/month Monthly cash flow after acquiring a second townhouse: Mortgage payment (etc) on 1st townhouse = -$700 Rental income from 1st townhouse = +$850 Mortgage payment (etc) on 2nd townhouse = -$800 Total cost = $650/month You'll actually lower your monthly costs by $50 by acquiring a second townhouse. Furthermore your tenant will be paying off your first mortgage for you, and you will own approximately $270K of real estate instead of only $135K. So, what do you say? Are you ready to invest? Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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