Financial Returns
Property Information
- Beds: 4
- Baths: 2
- Sq Feet: 1,654
- Year: 1880
- Monthly Rent: $2,000
- Property Taxes: $1,414
- Annual HOA: $0
It is fully furnished and rented to a construction crew for $1,800 a month from March 1st to the end of December. The price includes $42,000 worth of furnishings. January-February we typically do it as a short term rental, and then March-December we rent it to contractors. The same contracting crew will be back again March 1st and have agreed to pay $2,000 a month.
Older appraisal came in at $160k, so you may need to come to the table with extra money, which is reflected in the financing numbers.
This 4/2 house is conveniently located in a great location right in the heart of town walking distance to St. Ambrose University, Palmer University, Aldi, coffee shops and restaurants. Pretty much everything is new! This renovation turned out great!
Financial Projections
Financing Assumptions
| Loan Amount | $119,394 |
| Financed Rehab Amount | $0 |
| Interest Rate | 6.5% |
| Mortgage (yrs) | 30.0 |
| Mortgage Payment | $755 |
Initial Investment
| Down Payment (34%) | $61,506 |
| Rehab Amount | $0 |
| Est Closing Cost (2%) | $3,618 |
| Points (2%) | $2,388 |
| Total Out Of Pocket | $67,512 |
Property KPI Without Financing
| Annual Cash Flow | $19,900 |
| All In Cost | $186,906 |
| Cap Rate | 10.65% |
Property KPI With Financing
| Annual Cash Flow | $10,845 |
| Total Out Of Pocket | $67,512 |
| Cash On Cash | 16.06% |
Swipe the table to see Year 1 to Year 10 →
| Annual Revenue Increase | 3% | 3% | 3% | 3% | |
| Annual Operating Expense Increase | 3% | 3% | 3% | 3% | |
| Annual Expense Ratio | 15.39% | 15.39% | 15.39% | 15.39% | |
| Monthly | Year 1 | Year 3 | Year 5 | Year 10 | |
|---|---|---|---|---|---|
| Revenues | |||||
| Potential Rental Income | $2,000 | $24,000 | $25,462 | $27,012 | $31,315 |
| Vacancy Rate (2%) | $40 | $480 | $509 | $540 | $626 |
| Gross Rental Income | $1,960 | $23,520 | $24,952 | $26,472 | $30,688 |
| Expenses | |||||
| Estimated Annual Property Taxes | $118 | $1,414 | $1,500 | $1,591 | $1,845 |
| Estimated Annual Homeowners Insurance | $100 | $1,200 | $1,273 | $1,351 | $1,566 |
| Maintenance & Repairs (3%) | $59 | $706 | $749 | $794 | $921 |
| Estimated Annual Prop Mgmt Fee (0%) | $0 | $0 | $0 | $0 | $0 |
| Estimated Annual HOA Dues | $0 | $0 | $0 | $0 | $0 |
| Utilities | $25 | $300 | $318 | $338 | $391 |
| Reserves | $0 | $0 | $0 | $0 | $0 |
| Total Expenses | $302 | $3,620 | $3,840 | $4,074 | $4,723 |
| Returns Without Financing | |||||
| NOI (Cash Available) | $1,658 | $19,900 | $21,112 | $22,398 | $25,966 |
| Net Cashflow | $19,900 | $21,112 | $22,398 | $25,966 | |
| Cap Rate | 10.65% | 11.3% | 11.98% | 13.89% | |
| Returns With Financing | |||||
| NOI (Cash Available) | $1,658 | $19,900 | $21,112 | $22,398 | $25,966 |
| Mortgage | $755 | $9,056 | $9,056 | $9,056 | $9,056 |
| Net Cashflow | $10,845 | $12,057 | $13,342 | $16,910 | |
| Cash On Cash | 16.06% | 17.86% | 19.76% | 25.05% | |
Property Photos
Projections assume 3% annual rent growth and 3% annual expense growth, based on the Turnkey End Buyer strategy. All figures are estimates for information only. Verify independently before investing.