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 |
| Â Property Tax Rate (Approx.) |
2.3% |
 |
| Â Property Taxes |
$300 |
$3,600 |
| Â Insurance |
$150 |
$1,800 |
| Â Repairs |
$150 |
$1,800 |
| Variable-Cost PM |
Flat Fee |
 |
| Property Management Fee |
$200 |
$2,400 |
| Â Leasing Fee |
80% |
$90.0 |
$1,080 |
| Â HOA |
$0 |
$0 |
| Â Vacancy Rate |
4.0% |
 |
| Â Total Fixed Expenses |
$990 |
$11,880 |
| Â Total Expenses (Fixed + Mortgage) |
$2,054 |
$24,652 |
| Financial Analysis / Deal Attractiveness |
 |
| Years: |
5 |
10 |
| Â Cap Rate |
9.0% |
10.2% |
| Â Net Cash Flow |
$42,926 |
$96,966 |
| Â Equity Increase |
$94,428 |
$208,520 |
| Â Total Gain |
$137,354 |
$305,486 |
| Â |
 |
 |
| Â Average Cash Flow/Year |
$8,585 |
$9,697 |
| Â Average Cash Flow/Month |
$715 |
$808 |
| Â Average Gain/Year |
$27,471 |
$30,549 |
| Â Average ROI |
143.8% |
319.9% |
| Â Annual ROI |
28.8% |
32.0% |
| Â Projected Property Value |
$389,329 |
$473,678 |
| Property Ratings Suggestions |
| Â Item |
 |
 |
 Suggested Criteria (Min.) |
This Property |
FAVORABLE /
INSUFFICIENT |
| Â Schools |
 |
 |
B |
B |
FAVORABLE |
| Â Square Feet |
 |
1000 |
2312 |
FAVORABLE |
| Â Bedrooms |
 |
 |
3 |
4 |
FAVORABLE |
| Â Bathrooms |
 |
2 |
4 |
FAVORABLE |
| Â Year Built |
 |
 |
1970 |
1985 |
FAVORABLE |
| Â Rent/Price (%) |
 |
0.75% |
0.88% |
FAVORABLE |
| Â Average Cash Flow (at year 5) |
$125 |
$715 |
FAVORABLE |
| Â Average ROI (at year 5) |
15% |
28.8% |
FAVORABLE |
