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PROPERTY ADDRESS
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Assumptions and Summary
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Property
Beds / Baths 3/1
Last sold price / year
$43,200 / 2014
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Sq. Ft. 973 Days on market 85
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Asking $80,000.00 Year built1973
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Price / Sq. Ft. $82.22
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Listing URL zillow.com/
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Comments {notes}
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Purchase
Purchase price $77,000.00 LoanLoan fee $3,500.00
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Purchase price + seller credit
 $77,000.00
Finance loan fee as seller credit
 N
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Down payment %25.00%
Seller credit cap
2.00%
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Down payment $19,250.00 Seller credit -
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Depreciable basis $61,600.00 Escrow $3,606.22
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Inspection $350.00 Loan amount $57,750.00
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R&R $1,890.00
Loan interest rate
3.63%
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Initial investment $24,990.00 Loan term 360
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Initial cash cost $28,596.22
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Initial cash cost per person
 $9,532.07 Property taxCurrent tax $1,829.45
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Implied current taxable value
 $25,554.55
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Operating
Vacancy (months) 1 Current millage 72
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Rent increase1.00%
Pro forma taxable value
 $38,500.00
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Management fee / month $25.00
Pro forma millage
 72
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Annual maintenance $800.00 Pro forma tax $2,756.22
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Annual insurance $850.00
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Income tax
Marginal tax rate
10.00%
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Cash flow
Monthly rental income $1,200.00 Cap gain rate15.00%
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Monthly loan payment $(263.37)
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Monthly escrow payment $(300.52)Exit
Annual appreciation
2.00%
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Monthly CFADS $636.11
Exit selling costs
8.00%
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Average cash on cash16.10%
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MacroInflation rate3.00%
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IRR
Pretax discount rate12.00%
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Aftertax discount rate10.00%
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Pretax IRR20.55%
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Post tax IRR18.39%
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Operating P&L and Cash Flows
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Operating Income
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Rental Income
MonthlyUnitsYear 1Year 2Year 3Year 4Year 5Year 6Year 7
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Unit 1 $1,200.00 1 $14,400.00 $14,544.00 $14,689.44 $14,836.33 $14,984.70 $15,134.54 $15,285.89
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Unit 2 1 - - - - - - -
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Unit 3 1 - - - - - - -
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Unit 4 1 - - - - - - -
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Other Income
PriceQuantity
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Laundry $0.75 - - - - - - - -
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Late Fees $25.00 - - - - - - - -
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Parking $15.00 - - - - - - - -
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Total Potential Income
 $14,400.00 $14,544.00 $14,689.44 $14,836.33 $14,984.70 $15,134.54 $15,285.89
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Vacancy Allowance
 $1,200.00 $1,212.00 $1,224.12 $1,236.36 $1,248.72 $1,261.21 $1,273.82
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Forecasted Income
 $13,200.00 $13,332.00 $13,465.32 $13,599.97 $13,735.97 $13,873.33 $14,012.07
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Operating Expenses
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Management fees
 $275.00 $275.00 $275.00 $275.00 $275.00 $275.00 $275.00
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Maitenance & repair
 $800.00 $824.00 $848.72 $874.18 $900.41 $927.42 $955.24
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Grounds maintenance
 - - - - - - -
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Water & sewage
 - - - - - - -
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Trash collection
 - - - - - - -
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Taxes $2,756.22 $2,838.90 $2,924.07 $3,011.79 $3,102.14 $3,195.21 $3,291.06
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Fees & permits
 $100.00 $103.00 $106.09 $109.27 $112.55 $115.93 $119.41
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Insurance $850.00 $875.50 $901.77 $928.82 $956.68 $985.38 $1,014.94
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Turnover costs
 - $500.00 $500.00 $500.00 $500.00 $500.00 $500.00
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Major repairs
 $800.00 $800.00 $800.00 $800.00 $800.00 $800.00 $800.00
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Total Operating Expenses
 $5,581.22 $6,216.40 $6,355.64 $6,499.06 $6,646.78 $6,798.94 $6,955.66
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Operating Income
 $7,618.79 $7,115.60 $7,109.68 $7,100.91 $7,089.19 $7,074.39 $7,056.41
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Pretax Cash Flows
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Initial Investment
 $(24,990.00)
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Operating Income
 $7,618.79 $7,115.60 $7,109.68 $7,100.91 $7,089.19 $7,074.39
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Loan payments
 $(3,160.44) $(3,160.44) $(3,160.44) $(3,160.44) $(3,160.44) $(3,160.44)
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Sales proceeds / Refinance
 $92,345.32
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Selling costs
 $(7,387.63)
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Loan repayment
 $(49,262.39)
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Total Pretax Cash Flows
 $(24,990.00) $4,458.35 $3,955.16 $3,949.24 $3,940.47 $3,928.75 $39,609.27
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Cash on Cash Return
17.84%15.83%15.80%15.77%15.72%15.66%
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Pretax IRR (Years 1-7)
20.55%
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Pretax NPV
 $7,777.03
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Taxable Income
91
Operating Income
 $7,618.79 $7,115.60 $7,109.68 $7,100.91 $7,089.19 $7,074.39
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Loan interest
 $(2,075.53) $(2,035.54) $(1,994.08) $(1,951.09) $(1,906.52) $(1,860.30)
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Building depreciation
 $(2,240.00) $(2,240.00) $(2,240.00) $(2,240.00) $(2,240.00) $(2,240.00)
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Loan fee amortization
 $(116.67) $(116.67) $(116.67) $(116.67) $(116.67) $(116.67)
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Taxable Income (loss)
 $3,186.59 $2,723.39 $2,758.93 $2,793.15 $2,826.01 $2,857.43
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Tax expense (savings)
 $318.66 $272.34 $275.89 $279.32 $282.60 $285.74
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Aftertax operating cash flows
 $4,139.69 $3,682.82 $3,673.35 $3,661.16 $3,646.15 $3,628.22
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