That’s a lot of money and so many get people get afraid of that totally understandable, but let me walk you through this. Now that we’ve got the seller into contract, we have already been speaking with the bank about a loan modification and it’s looking incredibly promising. Ultimately, this deal is going to be a deal that cost me $80,000 which is still a very, very scary number. On this particular deal. I have a lender bringing me $81,000 That lender is charging me 10% interest that would be $8,100 for the year, divide that by 12 payments $675 a month for $675 a month, I’m bringing in a private money lender to cover all of my costs to get into this deal.
I also have multiple things to consider. I’ve got a cover that got to cover the principal, the interest, the taxes and the insurance. The monthly payment on this deal is all in $2,500 a month including the H O a $2,500 a month my private money lender as we already came up with is $675 a month. The next thing that I’ve got to worry about is I’ve got to have a management fee, because I’m gonna have somebody else manage the property for me, Noah Hoffman manages all of my Airbnbs He is amazing.
We love Noah Hoffman and we’ll bring him on a future episode with you guys in the future. The management fee on this property will be about $1,000 a month somebody breaks a lamp somebody screws up my this somebody screws up that whatever I’m gonna have a miscellaneous budget of about $700 a month and then I’m gonna have utilities and some buffering here have another $1,000 A month Okay, so my total costs every single month to maintain this property utilities cleaning miscellaneous oh my gosh somebody peed on the rug and then gonna pay Noah Hoffman to manage the property it’s gonna go up on his account not mine. I don’t even have an Airbnb account.
That’s how disconnected from managing these Airbnb is I am and then I’m going to make a monthly payment to the underlying sub two mortgage, the mortgage. I never qualified for the mortgage. I never called the bank about the mortgage. I never had to worry about ever, ever even applying for showing tax records, bank accounts, none of that stuff. My total cost to get into this deal every single month with no money out of my pocket. $5,875 a month is what my cost is to be the owner of this property.
We’ve done so many examples for you guys on lower end deals that didn’t cost this much money but I’m just showing you one of the three deals I’m actively doing outside of Arizona I have three deals right now in escrow that our seller finance are subject to we have two more that are coming under contract tomorrow. These are just the outside of state ones not including the ones in Arizona this deal I get it it’s 50 $175 But the beautiful thing about this is that it will bring in $11,000 a month in on Airbnb average. Every single month now there’s going to be months that are 15 grand, there’s going to be months where it’s $7,000 the average monthly income of this property is $11,000.
And what does that mean after all my costs after all my management after all my payments are made after everything is done taking out that 5875 I will net $5,125 every single month from a deal that I didn’t have to qualify for. I didn’t have to apply for I didn’t have to cold call. I didn’t even have to really do much. Jamario is the one that brought the deal to the table. He’s the one that followed up with the seller. This is the beautiful thing about creative finance. I didn’t have to talk to the bank. I didn’t have to go to a bank. I didn’t have to use my credit. I can close escrow on this house tomorrow with $0 in my bank, I will buy a $700,000 house in Atlanta Georgia, five bed five bath that will net me $5,125 Every single month.