Client - 15 Unit SFH - New Construction
Phoenix, AZ 85018
9 bedrooms 9.5 bathrooms
3 bdrm/ 2.5 bath each unit - Only 3 units vacant
| Square Feet | 27,375 | | Initial Market Value | $9,250,000 | | Purchase Price | $9,250,000 | | Downpayment | $3,237,500 | | Loan Origination Fees | $120,250 | | Depreciable Closing Costs | $277,500 | | Other Costs and Fixup | $0 | | Approximate Cash Invested | $3,635,250 | | Cost per Square Foot | $338 | | Monthly Rent per Square Foot | $1.89 |
| Projected Income | Monthly | Annual |
|---|
| Projected Rent | $51,850 | $622,200 | | Vacancy Losses | ($4,148) | ($49,776) | | Operating Income | $47,702 | $572,424 |
| Estimated Expenses | Monthly | Annual |
|---|
| Property Taxes | ($1,156) | ($13,875) | | Insurance | ($771) | ($9,250) | | Management Fees | ($1,908) | ($22,897) | | Leasing/Advertising Fees | $0 | $0 | | Association Fees | $0 | $0 | | Maintenance | ($1,037) | ($12,444) | | Other (Utilities, Supplies, etc.) | $0 | $0 | | Operating Expenses | ($4,872) | ($58,466) |
| Net Performance | Monthly | Annual |
|---|
| Net Operating Income | $42,830 | $513,958 | | - Mortgage Payments | ($32,568) | ($390,813) | | = Cash Flow | $10,262 | $123,146 | | + Principal Reduction | $0 | $0 | | + First-Year Appreciation | $46,250 | $555,000 | | = Gross Equity Income | $56,512 | $678,146 |
| | Mortgage Info | First | Second |
|---|
| Loan-to-Value Ratio | 65% | 0% | | Loan Amount | $6,012,500 | $0 | | Monthly Payment | $32,567.71 | $0.00 | | Loan Type | Interest Only Fixed | | | Term | 10 Years | | | Interest Rate | 6.500% | 0.000% | | Monthly PMI | $0 | |
| Financial Indicators | |
|---|
| Rent-to-Value Ratio™ (RV Ratio™) | 0.6% | | Debt Coverage Ratio | 1.32 | | Annual Gross Rent Multiplier | 15 | | Capitalization Rate | 5.6% | | Cash on Cash Return | 3% | | Return on Investment | 19% | | + Tax Benefits: Deductions, Depreciation, 1031 Exchange, etc. |
| Assumptions | |
|---|
| Projected Appreciation Rate | 6% | | Vacancy Rate | 8% | | 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.
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