Over the last several years it has become increasingly difficult to find single family homes in Bellingham that produce positive cash flow. However, with the downturn in the real estate market there are now some opportunities to purchase these investments. Over the last year local real estate prices have fallen while rental rates have increased. The equilibrium of positive cash flow has finally balanced out on entry level properties.

There are currently 8 homes for sale in Bellingham that “make sense”. For a home to make sense, I look for homes that would produce positive cash flow with a 20% down payment. In Bellingham, rental rates are typically based on the number of bedrooms. If you place a home for rent in Bellingham today, you should expect to receive $400 (on average) per bedroom. Therefore a 3 bedroom home would rent for $1,200. At a purchase price of $220,000, you would need $44,000 (20%) down payment and would pay $1,112.44 a month in principle and interest at 6.5% interest on a 30 year note. When you add in tax and insurance, you are going to be very close to $1,200 in monthly expenses.

Based on these numbers, it seems clear that a 3 bedroom home priced at $220,000 is the point of even cash flow. Therefore you need to target 3 bedroom homes in Bellingham that are priced under $220,000 to create positive cash flow. I have found 8 homes in Bellingham that currently fit the criteria. Because I do not represent the sellers of these properties I cannot advertise, which homes I am talking about. If you would like to learn more e-mail me at Ryan (at) SolutionsTeam.net, or call my cell number at 360-319-0040.