Estimated
Cash Flow 12 Identical Units |
|
Fully Occupied |
|
| Purchase Price per unit | $58.533 |
| Purchase Price | $700,000 |
| Rent per Unit | $640 |
| Down Payment | $280,000 |
| Loan Amount | $420,000 |
| Loan/Value % | 60.00% |
| Interest Rate | 6.50% |
| Mortgage Payment/ Mo | ($2,655) |
| Gross Income/mo | $7,680 |
| Gross Income/yr | $93,360 |
| Market Vacancy Reserve @ 3% | $2,765 |
| Gross Operating Income | $90,595 |
| Less Operating Expenses: | |
| Professional Management 6% | $7,469 |
| Resident Manager | |
| Water, Sewer, Trash | $5,040 |
| Gardening | $1,500 |
| Taxes | $8,400 |
| Insurance | $3,500 |
| Utilities - Tel & PGE | $660 |
| Turnover - Repairs | $6,535 |
| Legal, Advertising - Misc | $1,800 |
| Operating Expenses/yr - Total | $34,904 |
| Operating Expenses/yr (% of income) | 37.39% |
| Net Operating Income | $58,456 |
| Less Debt Service | ($31,856) |
| Operating Expenses & Vacancy % of Income | 40% |
| Cap Rate | 8% |
| Gross Multiple | 7.50 |
| Op Profit/yr after mortgage payment | $23,835 |
| Op Profit Cash Flow/mo | $1,986 |
Investors | Single Family Homes | Multi Family Properties
Worksheet courtesy of Larry Hawkins Real Estate in Fresno, CA.
© 2008 Larry Hawkins Real Estate. All rights reserved.