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