7 Town-homes
Property Specifications |
1 |
 Bedrooms |
4 |
 Bathrooms |
3 |
 Square Feet |
1873 |
 Year Built |
2013 |
 Garage Size |
2 |
 Schools Rating (on scale of A-F) |
B |
Purchase Assumptions |
My Offer |
Offer used for analysis |
$310,000 |
Suggested offer (low) |
$300,000 |
Suggested offer (high) |
$310,000 |
Asking |
$336,000 |
Market Value (after improvements) |
$330,000 |
Improvements (lower) |
$3,500 |
Improvements (upper) |
$6,500 |
Closing Costs |
$3,100 |
Mortgage Costs |
$3,100 |
Other Fees At Closing |
$0 |
Total Cost |
$321,200 |
Financing Assumptions |
 |
 Down Payment (%) |
25% |
 Down Payment Amount |
$77,500 |
 Financed Amount |
$232,500 |
 Interest Rate |
3.50% |
 Mortgage Term (Years) |
30 |
 Monthly Mortgage Payment |
$1,044 |
 Cash Outlay (Total Out of Pocket) |
$88,700 |
Financial Assumptions |
Monthly |
Yearly |
Rent (upper) |
$2,200 |
$2,300 |
$27,600 |
Rent (lower) |
$2,100 |
$25,200 |
 Property Tax Rate (Approx.) |
2.2% |
 |
 Property Taxes |
$416.67 |
$5,000 |
 Insurance |
$115 |
$1,380 |
 Repairs |
$65 |
$780 |
Variable-Cost PM |
Flat Fee |
 |
Property Management Fee |
$100 |
$1,200 |
 Leasing Fee |
80% |
$73.3 |
$880 |
 HOA |
$17 |
$204 |
 Vacancy Rate |
4.0% |
 |
 Total Fixed Expenses |
$871 |
$10,452 |
 Total Expenses (Fixed + Mortgage) |
$1,915 |
$22,980 |
Financial Analysis / Deal Attractiveness |
 |
 |
 |
 |
Years: |
5 |
10 |
15 |
20 |
 Cap Rate |
4.6% |
5.6% |
6.6% |
7.7% |
 Net Cash Flow |
$20,352 |
$49,343 |
$87,870 |
$136,928 |
 Equity Increase |
$95,450 |
$210,963 |
$350,770 |
$519,992 |
 Total Gain |
$115,802 |
$260,306 |
$438,640 |
$656,919 |
 |
 |
 |
 |
 |
 |
 Average Cash Flow/Year |
$4,070 |
$4,934 |
$5,858 |
$6,846 |
 Average Cash Flow/Month |
$339 |
$411 |
$488 |
$571 |
 Average Gain/Year |
$23,160 |
$26,031 |
$29,243 |
$32,846 |
 Average ROI |
130.6% |
293.5% |
494.5% |
740.6% |
 Annual ROI |
26.1% |
29.3% |
33.0% |
37.0% |
 Projected Property Value |
$401,495 |
$488,481 |
$594,311 |
$723,071 |
Property Ratings Suggestions |
 Item |
 |
 |
 Suggested Criteria (Min.) |
This Property |
FAVORABLE / INSUFFICIENT |
 Schools |
 |
 |
B |
B |
FAVORABLE |
 Square Feet |
 |
1000 |
1873 |
FAVORABLE |
 Bedrooms |
 |
 |
3 |
4 |
FAVORABLE |
 Bathrooms |
 |
 |
2 |
3 |
FAVORABLE |
 Year Built |
 |
 |
1970 |
2013 |
FAVORABLE |
 Rent/Price (%) |
 |
0.70% |
0.74% |
FAVORABLE |
 Average Cash Flow (at year 5) |
$125 |
$339 |
FAVORABLE |
 Average ROI (at year 5) |
15% |
26.1% |
FAVORABLE |