|
|
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 |
75% LTV |
6% interest |
$
1,793.67 |
$
7,083.14 |
$
12,221.84 |
$
17,190.66 |
|
|
|
|
|
30 year term |
|
|
|
|
|
|
8 |
Annual Cashflow before Taxes |
|
|
|
$
4,626.33 |
$
12,176.86 |
$
19,878.16 |
$
27,749.34 |
|
|
(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 |
|
|
|
|
$
2,662.69 |
$
6,285.95 |
$
6,132.71 |
$
17,931.16 |
|
(line 8 - line 9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11 |
Annual Taxes Due |
|
|
|
|
$
745.55 |
$
1,760.07 |
$
1,717.16 |
$
5,020.72 |
|
|
(line 10 x 28%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 |
After Tax Cash flow |
|
|
|
|
|
|
|
|
|
|
(line 8 +/1 line 11) |
|
|
|
|
$
3,880.78 |
$
10,416.79 |
$
18,161.00 |
$
22,728.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
13 |
Cash on Cash Return |
|
|
|
26% |
69% |
121% |
152% |
|
|
(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 |
|
|
$
8,080.78 |
$
14,910.79 |
$
22,969.58 |
$
27,873.80 |
|
|
(line 12 + line 14) |
|
|
|
|
|
|
|
|
|
16 |
(convert to %=line 15 / cash invested) |
|
|
54% |
99% |
153% |
186% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes: |
Leveraged/Mortgaged Buyer w loan terms of 15,000 down, 6%
interest rate, 30 year term, Loan Amount $45,000 |
|
|
|
$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 |
|
|
|
|
