I have done these a little different in that I buy them and rehab them with cash. Then I do a cash out refi after 6 months to pull my money back out. I will show those figures but I ran the number as if it was already fixed up and I just purchased at the appraised value with 20% down.
4900 Trinity Dr.
Purchase $28,500
Rehab $30,000
Rent $825
I ran this one at $65,000 purchase prices but it is worth at least $82,500 to another investor as a turn-key rental.
For the 20 Years Invested
Return (IRR): 27.60% per year
Total Profit when Sold: $154,371.18
Cash on Cash Return: 995.94%
Capitalization Rate: 10.54%
Total Rental Income: $232,498.60
Total Mortgage Payments: $68,915.02
Total Expenses: $48,366.67
Total Net Operating Income: $184,131.93
First Year Income and Expense
Monthly Annual
Income: $825.00 $9,900.00
Mortgage Pay: $287.15 $3,445.75
Vacancy (5%): $41.25 $495.00
Management Fee (8%): $66.00 $792.00
Property Tax: $62.50 $750.00
Total Insurance: $45.83 $550.00
Maintenance Cost: $41.67 $500.00
Cash Flow: $280.60 $3,367.25
(NOI): $571.05 $6,852.60
4900 Trinity Dr.
Purchase $28,500
Rehab $30,000
Rent $825
I ran this one at $65,000 purchase prices but it is worth at least $82,500 to another investor as a turn-key rental.
For the 20 Years Invested
Return (IRR): 27.60% per year
Total Profit when Sold: $154,371.18
Cash on Cash Return: 995.94%
Capitalization Rate: 10.54%
Total Rental Income: $232,498.60
Total Mortgage Payments: $68,915.02
Total Expenses: $48,366.67
Total Net Operating Income: $184,131.93
First Year Income and Expense
Monthly Annual
Income: $825.00 $9,900.00
Mortgage Pay: $287.15 $3,445.75
Vacancy (5%): $41.25 $495.00
Management Fee (8%): $66.00 $792.00
Property Tax: $62.50 $750.00
Total Insurance: $45.83 $550.00
Maintenance Cost: $41.67 $500.00
Cash Flow: $280.60 $3,367.25
(NOI): $571.05 $6,852.60