2 Houses on 1 Parcel
Mobile, AL 36605
2BR, 1BA each Home- Built 1982
Square Feet1,658
Initial Market Value$105,000
Purchase Price$105,000
Downpayment$26,250
Loan Origination Fees$788
Depreciable Closing Costs$5,250
Other Closing Costs and Fixup$0
Initial Cash Invested$32,288
Cost per Square Foot$63
Monthly Rent per Square Foot$0.78
IncomeMonthlyAnnual
Gross Rent$1,300$15,600
Vacancy Losses($104)($1,248)
Operating Income$1,196$14,352
ExpensesMonthlyAnnual
Property Taxes($79)($945)
Insurance($105)($1,260)
Management Fees($96)($1,148)
Leasing/Advertising Fees$0$0
Association Fees$0$0
Maintenance($104)($1,248)
Other$0$0
Operating Expenses($383)($4,601)
Net PerformanceMonthlyAnnual
Net Operating Income$813$9,751
- Mortgage Payments($399)($4,788)
= Cash Flow$414$4,963
+ Principal Reduction$106$1,270
+ First-Year Appreciation$525$6,300
= Gross Equity Income$1,044$12,533
+ Tax Savings$0$0
= GEI w/Tax Savings$1,044$12,533
Mortgage InfoFirstSecond
Loan-to-Value Ratio75%0%
Loan Amount$78,750$0
Monthly Payment$399.01$0.00
Loan TypeAmortizing Fixed
Term30 Years
Interest Rate4.500%0.000%
Monthly PMI$0
Financial Indicators
Debt Coverage Ratio2.04
Annual Gross Rent Multiplier7
Monthly Gross Rent Multiplier81
Capitalization Rate9.3%
Cash on Cash Return15%
Total Return on Investment39%
Total ROI with Tax Savings39%
Assumptions
Real Estate Appreciation Rate6%
Vacancy Rate8%
Management Fee8%
Maintenance Percentage8%
Comments
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.