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Metrics
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Fill in Blue Boxes with assumptions or actuals.
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Sale Price$399,000.00Market Rate Pro Forma5 Year Debt Paydown Summary
Does it qualify for a commercial loan?
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Debt Coverage Ratio Required:
1.25
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Market RatesItem$/Mo.Mortgage CalculatorYearFigure
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# of Rooms$/Week$/MonthTotalGross Rents $ 7,577.50 Sale Price $ 399,000.00 Total Debt Paydown1$3,165.15AssumptionPro FormaActual
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Standard Bedrooms10.00$175.00$757.75$7,577.50PadSplit Fee $ 606.20 Loan to Value Ratio80.00%ROI on Paydown13.97%Gross Rents $ 90,930.00 $ 90,930.00
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Premium Bedrooms$0.00$0.00Property Taxes $ 443.33 Down Payment $ 79,800.00 Total Debt Paydown2$3,398.18Vacancy10.00% $ 9,093.00 $ 9,093.00
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Primary Bedrooms$0.00$0.00Insurance $ 150.00 Closing Costs $ - ROI on Paydown24.26%Prop Mgmt12.00% $ 10,911.60 $ 7,274.40
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Guest House$0.00$0.00Owner-Paid Utilities + Cleaning $ 850.00 Principal $ 319,200.00 Total Debt Paydown3$3,648.37Cash Reserves3.00% $ 2,727.90 $ 2,727.90
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Gross Income$7,577.50Vacancy Reserve $ 757.75 Interest Rate7.13%ROI on Paydown34.57%Taxes (actual) $ 5,320.00 $ 5,320.00
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Maintenance Reserve $ 530.43 Term (Years) 30Total Debt Paydown4$3,916.97Insurance (actual) $ 1,800.00 $ 1,800.00
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Total Operating Expenses $ 3,337.71 Monthly Mortgage $ 2,150.51 ROI on Paydown44.91%Maintenance + Utilities15.00% $ 13,639.50 $ 16,565.10
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ExpensesMortgage + RenoMonthly NOI $ 4,239.79 Monthly Net $ 2,089.28 Total Debt Paydown5$4,205.35Total Expenses $ 43,492.00 $ 42,780.40
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Annualized NOI $ 50,877.50 Annualized Net $ 25,071.39 ROI on Paydown55.27%NOI $ 47,438.00 $ 48,149.60
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Property Tax/Yr $ 5,320.00 Downpayment (%)20.00%Capitalization Rate12.75%Annualized ROI31.42%Mortgage $ 25,806.11 $ 25,806.11
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Insurance/Mo $ 150.00 Interest Rate (%)7.125%Cash on Cash Return21.28%IRR20%
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Gas & Electric/Mo $ 400.00 Loan Term (Years)30
Five Year Tax Deduction Summary
Debt Coverage Ratio1.841.87
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Water/Sewer/Garb $ 200.00 Closing Costs $ -
Improved Value: Assessed Value Ratio (%)
80.00%Net Profit $ 21,631.89 $ 22,343.49
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Internet $ 100.00 Renovation Costs $ 30,000.00 Marginal Tax Rate22.00%
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Cleaning $ 150.00 Furnishing Costs $ 8,000.00 Rent Growth CalculatorCash Flow Calculator
Average Annualized % Appreciation
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Landscape/Pool $ - Months in holding0Rent Growth Rate:3.50%Cash Flow Growth Rate3.50%YearFigureAssumed Rate:3.50%
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PadSplit fee (%)8%Holding Costs $ - Market Rent (Year 1): $ 7,577.50 Initial Investment-$117,800.00Depreciation (Straight Line)1 $ 11,607.27
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Vacancy (%)10%Downpayment Total $ 79,800.00 Total Interest Paid 1 $ 22,640.96 End of Year:Est. ValueAnnual Gain% Gain
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Maintenance (%)7%ARV $ 450,000.00 End of Year:Market RentYearAnnual Cash FlowTotal Deductions1 $ 34,248.24 1 $ 465,750.00 $ 66,750.00 83.65%
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1 $ 7,577.50 Year 1$25,071.39Depreciation (Straight Line)2 $ 11,607.27 2 $ 482,051.25 $ 16,301.25 20.43%
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Total Cash Needed to Fund
$ 117,800.00 2 $ 7,842.71 Year 2$25,948.88Total Interest Paid 2 $ 22,407.93 3 $ 498,923.04 $ 16,871.79 21.14%
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(Initial Investment + Holding)
3 $ 8,117.21 Year 3$26,857.10Total Deductions2 $ 34,015.21 4 $ 516,385.35 $ 17,462.31 21.88%
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4 $ 8,401.31 Year 4$27,797.09Depreciation (Straight Line)3 $ 11,607.27 5 $ 534,458.84 $ 18,073.49 22.65%
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5 $ 8,695.36 Year 5$28,769.99Total Interest Paid 3 $ 22,157.75
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Total Return (% of initial investment)
6 $ 8,999.69 Year 6$29,776.94Total Deductions3 $ 33,765.02
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Year123457 $ 9,314.68 Year 7$30,819.13Depreciation (Straight Line)4 $ 11,607.27
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Source of Gain8 $ 9,640.70 Year 8$31,897.80Total Interest Paid 4 $ 21,889.14
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Cash flow21.28%22.03%22.80%23.60%24.42%9 $ 9,978.12 Year 9$33,014.23Total Deductions4 $ 33,496.42
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Debt Paydown3.97%4.26%4.57%4.91%5.27%10 $ 10,327.35 Year 10$34,169.73Depreciation (Straight Line)5 $ 11,607.27
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Tax Savings9.44%9.38%9.31%9.23%9.16%11 $ 10,688.81 Total Interest Paid 5 $ 21,600.76
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Appreciation83.65%20.43%21.14%21.88%22.65%12 $ 11,062.92 Total Deductions5 $ 33,208.04
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Total ROI118.34%56.09%57.82%59.62%61.50%13 $ 11,450.12 Avg Yearly Tax Savings $ 7,424.25
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Total $ Return94,433.6044,761.0546,141.9847,578.7849,073.9614 $ 11,850.88 % Annual ROI on Tax Savings9.30%
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15 $ 12,265.66
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16 $ 12,694.96
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17 $ 13,139.28
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Long Term Rental Calculator18 $ 13,599.15
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Gross Income19 $ 14,075.12
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Expected Rent$2,500.00$30,000.0020 $ 14,567.75
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Annual Cost
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Average Vacancy5.00%$1,500.00
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Property management fees
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Monthly Fee$200.00$2,400.00
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Leasing Fee 50% one month's rent50%$1,250.00
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General Maintenance5%$1,500.00
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22.63
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Turnover costs
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(Vacancy Rate / 1 month x Cost)
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Deep clean ($500)$300.12
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Carpet clean ($500)$300.12
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General Maintenance ($1000)$600.24
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Total Annual Costs$7,850.48
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Annual Gross Income$22,149.52
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Annual Mortgage Payments$25,806.11
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Annual Net Income-$3,656.59
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