Live From The Field
Purchase Assumptions |
My Offer |
Per Door |
Offer used for analysis |
$320,000 |
$160,000 |
Suggested offer (low) |
$320,000 |
$160,000 |
Suggested offer (high) |
$320,000 |
$160,000 |
Asking |
$320,000 |
$160,000 |
Market Value (after improvements) |
$320,000 |
 |
Improvements (lower) |
$6,500 |
$3,250 |
Improvements (upper) |
$8,500 |
$4,250 |
Closing Costs |
$4,000 |
$2,000 |
Mortgage Costs |
$4,000 |
$2,000 |
Other Fees At Closing |
$0 |
$0 |
Total Cost |
$335,500 |
$2,000 |
Purchase Assumptions |
My Offer |
Per Door |
Offer used for analysis |
$320,000 |
$160,000 |
Suggested offer (low) |
$320,000 |
$160,000 |
Suggested offer (high) |
$320,000 |
$160,000 |
Asking |
$320,000 |
$160,000 |
Market Value (after improvements) |
$320,000 |
 |
Improvements (lower) |
$6,500 |
$3,250 |
Improvements (upper) |
$8,500 |
$4,250 |
Closing Costs |
$4,000 |
$2,000 |
Mortgage Costs |
$4,000 |
$2,000 |
Other Fees At Closing |
$0 |
$0 |
Total Cost |
$335,500 |
$2,000 |
Financial Assumptions |
Monthly |
Yearly |
Rent (upper) |
$2,700 |
$2,800 |
$33,600 |
Rent (lower) |
$2,600 |
$31,200 |
 Property Tax Rate (Approx.) |
2.3% |
 |
 Property Taxes |
$300 |
$3,600 |
 Insurance |
$150 |
$1,800 |
 Repairs |
$150 |
$1,800 |
Variable-Cost PM |
Flat Fee |
 |
Property Management Fee |
$200 |
$2,400 |
 Leasing Fee |
80% |
$90.0 |
$1,080 |
 HOA |
$0 |
$0 |
 Vacancy Rate |
4.0% |
 |
 Total Fixed Expenses |
$990 |
$11,880 |
 Total Expenses (Fixed + Mortgage) |
$2,054 |
$24,652 |
Financial Analysis / Deal Attractiveness |
 |
Years: |
5 |
10 |
 Cap Rate |
9.0% |
10.2% |
 Net Cash Flow |
$42,926 |
$96,966 |
 Equity Increase |
$94,428 |
$208,520 |
 Total Gain |
$137,354 |
$305,486 |
 |
 |
 |
 Average Cash Flow/Year |
$8,585 |
$9,697 |
 Average Cash Flow/Month |
$715 |
$808 |
 Average Gain/Year |
$27,471 |
$30,549 |
 Average ROI |
143.8% |
319.9% |
 Annual ROI |
28.8% |
32.0% |
 Projected Property Value |
$389,329 |
$473,678 |
Property Ratings Suggestions |
 Item |
 |
 |
 Suggested Criteria (Min.) |
This Property |
FAVORABLE / INSUFFICIENT |
 Schools |
 |
 |
B |
B |
FAVORABLE |
 Square Feet |
 |
1000 |
2312 |
FAVORABLE |
 Bedrooms |
 |
 |
3 |
4 |
FAVORABLE |
 Bathrooms |
 |
2 |
4 |
FAVORABLE |
 Year Built |
 |
 |
1970 |
1985 |
FAVORABLE |
 Rent/Price (%) |
 |
0.75% |
0.88% |
FAVORABLE |
 Average Cash Flow (at year 5) |
$125 |
$715 |
FAVORABLE |
 Average ROI (at year 5) |
15% |
28.8% |
FAVORABLE |