INVESTMENT PROPERTY. I am from the UK where we have a buy to let agreement with our lenders. What do you have in the US for property investors?

Asked by Dmcr, Boston, MA Tue Jun 19, 2012

What % interest is payable deposit on, say $400,000.00 property V how much return could I expect?

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NBT, , Boston, MA
Wed Jun 20, 2012
Your deposit on the investment property would depend on the owner occupant ratio of the building as well as your relationship with the lender. Depending on these factors it could range from the low 15% range to the high 30% range. Your ROI and ability to profit on rental income is highly related to the rental market in the local area. If you are looking in Boston, you are in luck, because the rental market here is close to 100% occupancy. The main benefit is that you get an appreciating asset (higher value on resale) while having a steady stream of income. To give you an idea I have a $400k condo in Beacon Hill with a mortgage payment of $1600+ $300 condo fee. The rental value of the property is around $2500. So you are looking at around $600/month profit on a similar property.
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Louis Wolfs…, Agent, Needham, MA
Tue Jun 19, 2012
Typical deposit on investment property is 25 - 30%

Returns are based on many factors. Location, type of property (apartments, office, retail, industrial) and financing.

I have buyers that buy at a 5 - 6 cap rate for prime apartment properties. One could expect a 6 - 8 cap for prime retail properties. One can buy Walgreens NNN leased properties at a 7 cap.
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