Estimated
Cash Flow 14 Identical Units |
|||
Current Rents |
Future Rents |
Future Rents |
|
| Rent per unit per/mo | $600 |
$700 |
$800 |
| Purchase Price ($85k per unit) | $1,190,000 |
$1,190,000 |
$1,190,000 |
| Down Payment (30%) | $357,000 |
$357,000 |
$357,000 |
| Closing Costs | $11,900 |
$11,900 |
$11,900 |
| Loan Costs | $12,330 |
$12,330 |
$12,330 |
| Loan Amount | $857,230 |
$857,230 |
$857,230 |
| Loan/Value % | 72.04% |
72.04% |
72.04% |
| Interest Rate | 5.00% |
5.00% |
5.00% |
| Mortgage Payment/ Mo | ($4,602) |
($4,602) |
($4,602) |
| Gross Income/mo | $8,400 |
$9,800 |
$11,200 |
| Gross Income/yr | $100,800 |
$117,600 |
$134,400 |
| Market Vacancy Reserve @ 3% | $3,024 |
$3,528 |
$4,032 |
| Gross Operating Income | $97,776 |
$114,072 |
$130,368 |
| Less Operating Expenses: | |||
| Professional Management 8% | $8,064 |
$9,408 |
$10,752 |
| Resident Manager | $1,800 |
$1,800 |
$1,800 |
| Water, Sewer, Trash | $4,800 |
$4,800 |
$4,800 |
| Gardening | $1,020 |
$1,020 |
$1,020 |
| Taxes | $14,280 |
$14,280 |
$14,280 |
| Insurance | $3,570 |
$3,570 |
$3,570 |
| Utilities | $1,190 |
$1,190 |
$1,190 |
| Repairs | $3,024 |
$3,528 |
$4,032 |
| Operating Expenses/yr - Total | $37,748 |
$39,596 |
$41,444 |
| Operating Expenses/yr (% of income) | 37.45% |
33.67% |
30.84% |
| Net Operating Income | $63,052 |
$78,004 |
$92,956 |
| Less Debt Service | ($55,222) |
($55,222) |
($55,222) |
| Operating Expenses & Vacancy % of Income | 40% |
37% |
34% |
| Cap Rate | 5.30% |
6.55% |
7.81% |
| Gross Multiple | 11.81 |
10.12 |
8.85 |
| Op Profit/yr after mortgage payment | $4,806 |
$19,254 |
$33,702 |
| OP Profit Cash Flow/mo | $401 |
$1,605 |
$2,809 |
| Cash Flow/yr (% of Down Payment) | 1.3% |
5.4% |
9.4% |
Investors | Single Family Homes | Multi Family Properties
Worksheet courtesy of Larry Hawkins Real Estate in Fresno, CA.
© 2010 Larry Hawkins Real Estate. All rights reserved.