New Construction and Leased
Lincoln, AL 35096
3 BR 2 BA 2 Car Gar Built in 2020
Square Feet1,801
Initial Market Value$183,000
Purchase Price$183,000
Downpayment$45,750
Loan Origination Fees$3,088
Depreciable Closing Costs$4,575
Other Closing Costs and Fixup$0
Initial Cash Invested$53,413
Cost per Square Foot$102
Monthly Rent per Square Foot$0.77
IncomeMonthlyAnnual
Gross Rent$1,395$16,740
Vacancy Losses($84)($1,004)
Operating Income$1,311$15,736
ExpensesMonthlyAnnual
Property Taxes($101)($1,208)
Insurance($67)($805)
Management Fees($105)($1,259)
Leasing/Advertising Fees$0$0
Association Fees$0$0
Maintenance($28)($335)
Other$0$0
Operating Expenses($301)($3,607)
Net PerformanceMonthlyAnnual
Net Operating Income$1,011$12,129
- Mortgage Payments($912)($10,947)
= Cash Flow$99$1,182
+ Principal Reduction$116$1,397
+ First-Year Appreciation$915$10,980
= Gross Equity Income$1,130$13,559
+ Tax Savings$83$998
= GEI w/Tax Savings$1,213$14,558
Mortgage InfoFirstSecond
Loan-to-Value Ratio75%0%
Loan Amount$137,250$0
Monthly Payment$912.21$0.00
Loan TypeAmortizing Fixed
Term30 Years
Interest Rate6.990%0.000%
Monthly PMI$0
Financial Indicators
Debt Coverage Ratio1.11
Annual Gross Rent Multiplier11
Monthly Gross Rent Multiplier131
Capitalization Rate6.6%
Cash on Cash Return2%
Total Return on Investment25%
+ Tax Benefits: Deductions, Depreciation, 1031 Exchange, etc.
Assumptions
Real Estate Appreciation Rate6%
Vacancy Rate6%
Management Fee8%
Maintenance Percentage2%
Comments
* One year limited builder's warranty included
* Tenant moved in May 14, 2020
* Appreciation, Vacancy and Maintenance Assumptions provided by JasonHartman.com
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.