Property Analysis

CASH NEEDED
$ 29,300
CASH FLOW
$ 211/mo
CAP RATE
7.2%
COC
8.6%

Purchase & rehab

Purchase Price:
$ 105,000
Amount Financed
- $ 84,000
Down Payment:
=  $ 21,000
Purchase Costs:
+ $ 3,000
Rehab Costs:
+ 5,300
Total Cash Needed
= $ 29,300

Financing (Purchase)

Loan Amount:
$ 85,680
Loan to Cost:
80 %
Loan to Value:
67,2 %
Loan Type:
Amortizing, 30 Year
Interest Rate:
4.25 %

Valuation

After Repair Value:
$ 125,000
Price Per Square Meter:
$ 100
Rehab Per Square Meter:
$ 5

Cash flow (Year 1)

Gross Rent:
$ 1,150
Vacancy:
- $ 58
5% of Rent
Operating Income:
=  $ 1,092
Operating Expenses:
- $ 460
42.1% of Income
Net Operating Income:
= $ 29,300
Loan Payments:
- $ 421
Cash Flow:
= $ 211
Post-Tax Cash Flow:
$ 169

Investment returns (Year1)

Cap Rate (Purchase Price):
7.2 %
Cap Rate (Market Value):
6.1 %
Cash on Cash Return:
8.6 %
Return on Equity:
5.7 %
Return on Investment:
47.4 %
Internal Rate of Return:
47.4 %

Financial ratios (At purchase)

Rent to Value:
1.1 %
Gross Rent Multiplier:
7.61
Equity Multiple:
1.47
Break Even Ratio:
76.6 %
Debt Coverage Ratio:
1.5
Debt Yield:
9 %

Purchase criteria

Purchase Price  less than $250,000
Total Cash Needed  less than $50,000
Price Per Square Meter  less than $100
Passes 1% Rule
Fails 2% Rule
Passes 50% Rule
Cash Flow greater than $150