| RENTAL PROPERTY CASH RETURN ANALYSIS | ||||||||||
| $60,000 Rental Property Investment | ||||||||||
| 1 Yr Return | 3 Yr Return | 5 Yr Return | 7 Yr Return | |||||||
| 1 | Gross Annual Rent | 800 | /mo rent | $ 9,600.00 | $ 28,800.00 | $ 48,000.00 | $ 67,200.00 | |||
| 2 | Vacancies & Uncollected Rent 5% factor | $ 480.00 | $ 1,440.00 | $ 2,400.00 | $ 3,360.00 | |||||
| (line 1 x 5%) | ||||||||||
| 3 | Net Annual Rental | $ 9,120.00 | $ 27,360.00 | $ 45,600.00 | $ 63,840.00 | |||||
| (line 1 - line 2) | ||||||||||
| 4 | Annual Repairs, Maintenance, Utilities, Property MGT | $ 1,200.00 | $ 3,600.00 | $ 6,000.00 | $ 8,400.00 | |||||
| (Est $100/mo repairs, $0/ mo gardner,wtr/tr,electrical, gas) | ||||||||||
| 5 | Annual Property Taxes and Insurance | $ 1,500.00 | $ 4,500.00 | $ 7,500.00 | $ 10,500.00 | |||||
| 6 | Net Operating Income (before Mortgage Interest) | $ 6,420.00 | $ 19,260.00 | $ 32,100.00 | $ 44,940.00 | |||||
| (line 3 minus (line 4 + line 5)) | ||||||||||
| 7 | Annual Mortgage Interest | $ - | $ - | $ - | $ - | |||||
| 8 | Annual Cashflow before Taxes | $ 6,420.00 | $ 19,260.00 | $ 32,100.00 | $ 44,940.00 | |||||
| (line 6 - line 7) | ||||||||||
| 9 | Depreciation | 60000 | Rental Investment | $ 1,963.64 | $ 5,890.91 | $ 13,745.45 | $ 9,818.18 | |||
| (Sales Price + Improvements) | ||||||||||
| (Minues Land Value = 10%) | ||||||||||
| (Building Value / 27.5%) | ||||||||||
| 10 | Tax Loss or Gain | $ 4,456.36 | $ 13,369.09 | $ 18,354.55 | $ 35,121.82 | |||||
| (line 8 - line 9) | ||||||||||
| 11 | Annual Taxes Due | $ 1,247.78 | $ 3,743.35 | $ 5,139.27 | $ 9,834.11 | |||||
| (line 10 x 28%) | ||||||||||
| 12 | After Tax Cash flow | |||||||||
| (line 8 +/1 line 11) | $ 5,172.22 | $ 15,516.65 | $ 26,960.73 | $ 35,105.89 | ||||||
| 13 | Cash on Cash Return | 9% | 26% | 45% | 59% | |||||
| (line 12 / cash invested "downpayment + repairs") | ||||||||||
| 14 | Projected 1 Year Gain in value in Sales Price | $ 4,200.00 | $ 4,494.00 | $ 4,808.58 | $ 5,145.18 | |||||
| (Sales Price * 7% appreciation factor) | ||||||||||
| 15 | Projected After Tax Return after 1 year | $ 9,372.22 | $ 20,010.65 | $ 31,769.31 | $ 40,251.07 | |||||
| (line 12 + line 14) | ||||||||||
| 16 | (convert to %=line 15 / cash invested) | 16% | 33% | 53% | 67% | |||||
| Notes: | All Cash Buyer, $800/mo rents, estimated tax rate 28% and estimated sales appreciation | |||||||||
| of 7%. Property Management included | ||||||||||
| Net Growth Realty makes no representation or warranty express, implied or otherwise. | ||||||||||
| No parties shall be bound to any terms, conditions or agreements whatsoever contained herein. | ||||||||||
| The information provided is based on estimations and assumptions as so noted | ||||||||||