Pre-Leased Property
Memphis, TN 38128
3bd • 2ba • Built: 1964
Client Resale
| Estimated Square Feet | 1,401 | | Initial Market Value | $176,000 | | Purchase Price | $176,000 | | Downpayment | $44,000 | | Loan Origination Fees | $0 | | Depreciable Closing Costs | $7,040 | | Other Costs and Fixup | $10,000 | | Approximate Cash Invested | $61,040 | | Cost per Square Foot / per Bedroom | $126 / $58,667 | | Monthly Rent per SQFT / per Bedroom | $0.92 / $430 |
| Projected Income | Monthly | Annual |
|---|
| Projected Rent | $1,290 | $15,480 | | Vacancy Losses | ($103) | ($1,238) | | Operating Income | $1,187 | $14,242 |
| Estimated Expenses | Monthly | Annual |
|---|
| Property Taxes | ($132) | ($1,584) | | Insurance | ($73) | ($880) | | Management Fees | ($95) | ($1,139) | | Leasing/Advertising Fees | $0 | $0 | | Association Fees | $0 | $0 | | Maintenance | ($103) | ($1,238) | | Other (Utilities, Supplies, etc.) | $0 | $0 | | Operating Expenses | ($403) | ($4,842) |
| Net Performance | Monthly | Annual |
|---|
| Net Operating Income | $783 | $9,400 | | - Mortgage Payments | ($791) | ($9,497) | | = Cash Flow | ($8) | ($97) | | + Principal Reduction | $135 | $1,621 | | + Inflation Induced Debt Destruction® (IIDD) - Beta | $330 | $3,960 | | + First-Year Appreciation | $880 | $10,560 | | = Gross Equity Income | $1,337 | $16,044 |
| | Mortgage Info | First | Second |
|---|
| Loan-to-Value Ratio | 75% | N/A | | Loan Amount | $132,000 | N/A | | Monthly Payment | $791.41 | 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 | 0.99 | | Annual Gross Rent Multiplier | 11 | | Capitalization Rate | 5.3% | | Cash on Cash Return | 0% | | Return on Investment | 20% | | Return on Investment with IIDD | 26% | | + 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 9/14/2025 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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