Rob is a fun but responsible single in his mid 20’s. He has a full time job and has already
purchased a Balanced Return type property as his primary residence. His goal is flexibility of
life choices while ensuring financial security.

His plan was simple; use the mortgage qualifying power of his current job to secure his first
cash flow property to free him financially to travel or change careers as opportunities present
themselves. The profits of this new Cash Flow property can be put towards paying down his
new cash flow property, his residence or saving for his next investment.

Rob has a 30 year, fixed rate mortgage @ 5.5% with a monthly PITI of $393.78 with
no prepayment penalties.
A rental CMA of similar properties in the area puts monthly rent at $950.
His profit is $556.22 per month or $6,600 per year!

The ‘For Rent’ sign went up outside the house two days after he closed, he had two
genuine enquiries from teachers in the local area the same day and completed a lease
agreement with one of them for $950 a month. Because he is saving time and money
on repairs he is offering a rental discount of $50 a month if the rent is paid on the first.

Rob’s PITI on his primary residence is $1,345 per month. A rental CMA puts rent on his home
at $1750 per month, a $400 surplus.

The investment of $12,000 into a Cash Flow property at this stage of his life generates
additional income of $550 per month or $6,600 per year. This represents almost a 50% Cash
on Cash return even after factoring in all costs.

Should Rob rent his own residence, he will have an additional $950 per month. This will
assist to free himself financially for whatever opportunities come his way. A second cash flow
property can only further expand his horizons!


(For privacy purposes, client’s names have been changed, but all case study
examples are real people with real property plans referencing real transactions.)