So the question is, how do you go about purchasing a TIC as an investment property? We're here to help, take a look at the example below. Here's an example of a TIC (Tenants in common or co-op apartment) purchased as an investment property.
Location: 1528 Julia Street, Berkeley, California 94703
Price: $330,000
2 br 1 ba 715 sqft
Type of propert: TIC
Listing Type: Resale
Status: For Sale
Year Built: 1963
Price/sqft: $462
Lot Size: 4,496 sqft
Days on Market: More than 30 days
ZIP Code: 94703
Neighborhood: South Berkeley
Additional Info: Prior sale history, Assessor records
This is a great opportunity to own a condo in Berkeley at a TIC price....Read more at postlets.com
Remember: TICs require you to come to agreement with other members of the tenancy in common, therefore, there is the potential for one member to pull out suddenly, not be able to afford their mortgage payment, and this would then affect the groups mortgage payment. So you have to be selective and trust the other tenancy owners.
TICs are often the way to go when living in a big city like New York or San Francisco, and as an investor, a good way to get into a quality market like this. Perhaps you have a goal of sole ownership of the property at some point.
Rough Numbers:
Down payment:
Loan amount:
Property tax rate:
Expenses: % of gross earnings
Appreciation:
Loan amount:
Interest rate:
Loan term:
Annual tax:
Annual insurance:
Monthly Principal + Interest:
Monthly tax:
Monthly insurance:
Total monthly payment:
Interest payment per year:
Mortgage payments for the year:
Principal payments for the year:
Per year appreciation growth:
Gross income:
Operating expenses (managing property, landscaping, insurance, property taxes, painting - there are fixed and variable expenses):
Loan payments:
Cash flow =
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