Considering the political leaning of the current occupant of the real White House, it’s doubtful that AIPIS founder and CEO Jason Hartman would accept an invitation to spend time there but another white house has caught his attention. While many previous discussions have been related to single family residential (SFR) investments, let us not forget that sometimes you can also find a heck of a multi-unit deal.

The white house we’re talking about is actually a 16 unit apartment building in Groveport, Ohio, that sells for $1,040,000. Before you call the ambulance to take you to the hospital for medical treatment regarding a heart condition you instantly developed upon hearing of the availability of a million dollar property, let us assure you that it doesn’t mean you have to plop down one million dollars to get in on this deal. In fact, even if you had a million dollars sitting around and wanted to plow it into this deal, we’d suggest you don’t because the rising inflation rate over the next 30 years would kill your overall profit.

With decent credit, you would only need a $260,000 down payment to control this apartment building. Gross rents minus vacancies will amount to about $130,000 the first year. Subtract operating expenses and mortgage payments and you’re looking at a positive cash flow of $16,596 from your investment in the first year. As Jason Hartman would say, “That deal makes sense the day you buy it.”

Based on historical figures, you can expect the property to gain about $20,000 in appreciation the first year of ownership. Chances are, that number is not going to do anything but get better. Finance the whole thing with a fixed interest rate mortgage that runs for at least 30 years and you are on your way to the world of financial independence. According to the AIPIS model, you should refinance this “white house” after seven years, and plow the equity into the purchase of new income properties that also make sense the day you buy them. This is how the wealthy get to be that way in America today.

See all the details of Jason Hartman’s “white house” here.

The AIPIS Team