Pre-Leased Property
Memphis, TN 38128
3bd • 2ba • Built: 1964
Client Resale
| Estimated Square Feet | 1,527 | | Initial Market Value | $156,700 | | Purchase Price | $156,700 | | Downpayment | $39,175 | | Loan Origination Fees | $0 | | Depreciable Closing Costs | $6,268 | | Other Costs and Fixup | $10,000 | | Approximate Cash Invested | $55,443 | | Cost per Square Foot / per Bedroom | $103 / $52,233 | | Monthly Rent per SQFT / per Bedroom | $0.74 / $375 |
| Projected Income | Monthly | Annual |
|---|
| Projected Rent | $1,125 | $13,500 | | Vacancy Losses | ($90) | ($1,080) | | Operating Income | $1,035 | $12,420 |
| Estimated Expenses | Monthly | Annual |
|---|
| Property Taxes | ($118) | ($1,410) | | Insurance | ($65) | ($784) | | Management Fees | ($83) | ($994) | | Leasing/Advertising Fees | $0 | $0 | | Association Fees | $0 | $0 | | Maintenance | ($90) | ($1,080) | | Other (Utilities, Supplies, etc.) | $0 | $0 | | Operating Expenses | ($356) | ($4,267) |
| Net Performance | Monthly | Annual |
|---|
| Net Operating Income | $679 | $8,153 | | - Mortgage Payments | ($705) | ($8,455) | | = Cash Flow | ($25) | ($303) | | + Principal Reduction | $120 | $1,443 | | + Inflation Induced Debt Destruction® (IIDD) - Beta | $294 | $3,526 | | + First-Year Appreciation | $784 | $9,402 | | = Gross Equity Income | $1,172 | $14,068 |
| | Mortgage Info | First | Second |
|---|
| Loan-to-Value Ratio | 75% | N/A | | Loan Amount | $117,525 | N/A | | Monthly Payment | $704.62 | N/A | | Loan Type | Amortizing Fixed | N/A | | Term | 30 Years | N/A | | Nominal / Real Interest Rate | 6.000% / 3.000% | N/A | | Monthly PMI | $0 | N/A |
| Empowered Investor® Indicators | |
|---|
| Rent-to-Value Ratio™ (RV Ratio™) | 0.7% | | Debt Coverage Ratio | 0.96 | | Annual Gross Rent Multiplier | 12 | | Capitalization Rate | 5.2% | | Cash on Cash Return | -1% | | Return on Investment | 19% | | Return on Investment with IIDD | 25% | | + Tax Benefits: Deductions, Depreciation, 1031 Exchange, etc. |
| Assumptions & Projections | |
|---|
| Projected Appreciation Rate | 6% | | Projected Inflation Rate | 3% | | Vacancy Rate | 8% | | Management Fee | 8% | | Maintenance Percentage | 8% |
| Comments |
|---|
| Leased through 6/30/2026 Rent Zestimate: $1,400/mo |
*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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