|
PRE-ANALYZED INVESTMENT OPPORTUNITY
THE DEAL:
READ: Under $20,000
EXAMPLE: CONDO WITH
UPSIDE
Two bed, two bath 900+ Sq.ft. Condominium. We create a 6 page financial
and market analysis of these properties which we would be happy to give you on request. If you have EXCEL
we can also e-mail you a detailed financial analysis form you can apply to this
and other
transactions.
|
PROJECTION: PRICE AND FINANCING |
|
PURCHASE PRICE |
220,000 |
100% |
Included 3% non-recurring
closing cost credit. |
|
Down Payment |
5,000 |
|
Deposit
check |
|
Loan: 80% 1st. TD @6.3
Loan: 20% 2nd TD @10.5 |
$176,000
$44,000 |
100% |
No-
pre pay, stated income, 620+ FICO |
|
PROJECTION: FIRST YEAR OPERATING STATEMENT |
|
Annual Gross Rental Income |
$15,600 |
100% |
$1,300 per month rent |
|
Less: expenses including 6% mgt., 5% vacancy, 5% repair &
maintenance. |
$7,020 |
45% |
|
|
NET OPERATING INCOME |
$8,580 |
55% |
|
|
Less: Loan Payments |
$17,604 |
|
|
NET CASH FLOW |
-
$9,024 |
|
|
|
PROJECTION: FIRST YEAR INVESTMENT RECAP |
|
NET CASH FLOW |
-$9,024 |
|
|
Plus: 1st. yr. principal reduction or equity gain |
$2,043 |
|
|
Plus: tax savings - Total depreciation of $7,200 plus negative
cash flow = $14,181 loss x 40% tax rate= $5,672 tax savings. |
$5,672 |
Assume you have 40% Fed & State tax rate |
Negative
cash flow |
-$1,308 |
|
|
2 years later....Property appreciates at 10% per year.
TWO
YEAR
PROJECTION |
|
MARKET VALUE |
$266,200 |
10% x 2 years |
|
Loan balance: reduced to: |
$217,956 |
82% |
|
Equity: |
$48,244 |
18% |
At this point possible
options are: re-finance, sell, exchange, or hold and raise the rent. |
Please call Roy Leonard at 310-293-9914 if this investment opportunity appeals to you.
Staff@SafariRealtors.com
Safari Group Keller Williams Beach Cities
1601 Pacific Coast Highway #265
Hermosa Beach CA, 90254
Home Page
|
