Client - 15 Unit SFH - New Construction
Phoenix, AZ 85018
3 bdrm/ 2.5 bath each unit - Only 3 units vacant
| General Information | |
|---|---|
| Square Feet | 27,375 |
| Initial Market Value | $9,250,000 |
| Purchase Price | $9,250,000 |
| Downpayment | $2,775,000 |
| Loan Origination Fees | $129,500 |
| Depreciable Closing Costs | $277,500 |
| Other Closing Costs and Fixup | $0 |
| Initial Cash Invested | $3,182,000 |
| Cost per Square Foot | $338 |
| Monthly Rent per Square Foot | $1.89 |
| Income | Monthly | Annual |
|---|---|---|
| Gross Rent | $51,850 | $622,200 |
| Vacancy Losses | ($2,593) | ($31,110) |
| Operating Income | $49,258 | $591,090 |
| Expenses | Monthly | Annual |
|---|---|---|
| Property Taxes | ($1,156) | ($13,875) |
| Insurance | ($771) | ($9,250) |
| Management Fees | ($1,970) | ($23,644) |
| Leasing/Advertising Fees | $0 | $0 |
| Association Fees | $0 | $0 |
| Maintenance | ($1,037) | ($12,444) |
| Other | $0 | $0 |
| Operating Expenses | ($4,934) | ($59,213) |
| Net Performance | Monthly | Annual |
|---|---|---|
| Net Operating Income | $44,323 | $531,877 |
| - Mortgage Payments | ($35,073) | ($420,875) |
| = Cash Flow | $9,250 | $111,002 |
| + Principal Reduction | $0 | $0 |
| + First-Year Appreciation | $46,250 | $555,000 |
| = Gross Equity Income | $55,500 | $666,002 |
| + Tax Savings | $4,807 | $57,686 |
| = GEI w/Tax Savings | $60,307 | $723,688 |
| Mortgage Info | First | Second |
|---|---|---|
| Loan-to-Value Ratio | 70% | 0% |
| Loan Amount | $6,475,000 | $0 |
| Monthly Payment | $35,072.92 | $0.00 |
| Loan Type | Interest Only Fixed | |
| Term | 10 Years | |
| Interest Rate | 6.500% | 0.000% |
| Monthly PMI | $0 |
| Financial Indicators | |
|---|---|
| Debt Coverage Ratio | 1.26 |
| Annual Gross Rent Multiplier | 15 |
| Monthly Gross Rent Multiplier | 178 |
| Capitalization Rate | 5.8% |
| Cash on Cash Return | 3% |
| Total Return on Investment | 21% |
| + Tax Benefits: Deductions, Depreciation, 1031 Exchange, etc. | |
| Assumptions | |
|---|---|
| Real Estate Appreciation Rate | 6% |
| Vacancy Rate | 5% |
| Management Fee | 4% |
| Maintenance Percentage | 2% |
| Comments |
|---|
| No Pool. Blinds included. Appliances included. Washer/Dryer included in each unit. 15 units in 7 buildings. PM is 4% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.