Pre-Leased Property
Memphis, TN 38141
3bd • 2ba • Built: 1983
Client Resale
| Estimated Square Feet | 1,469 | | Initial Market Value | $195,000 | | Purchase Price | $195,000 | | Downpayment | $48,750 | | Loan Origination Fees | $0 | | Depreciable Closing Costs | $7,800 | | Other Costs and Fixup | $10,000 | | Approximate Cash Invested | $66,550 | | Cost per Square Foot / per Bedroom | $133 / $65,000 | | Monthly Rent per SQFT / per Bedroom | $0.98 / $482 |
| Projected Income | Monthly | Annual |
|---|
| Projected Rent | $1,445 | $17,340 | | Vacancy Losses | ($116) | ($1,387) | | Operating Income | $1,329 | $15,953 |
| Estimated Expenses | Monthly | Annual |
|---|
| Property Taxes | ($146) | ($1,755) | | Insurance | ($81) | ($975) | | Management Fees | ($106) | ($1,276) | | Leasing/Advertising Fees | $0 | $0 | | Association Fees | $0 | $0 | | Maintenance | ($116) | ($1,387) | | Other (Utilities, Supplies, etc.) | $0 | $0 | | Operating Expenses | ($449) | ($5,393) |
| Net Performance | Monthly | Annual |
|---|
| Net Operating Income | $880 | $10,559 | | - Mortgage Payments | ($877) | ($10,522) | | = Cash Flow | $3 | $37 | | + Principal Reduction | $150 | $1,796 | | + Inflation Induced Debt Destruction® (IIDD) - Beta | $366 | $4,388 | | + First-Year Appreciation | $975 | $11,700 | | = Gross Equity Income | $1,493 | $17,921 |
| | Mortgage Info | First | Second |
|---|
| Loan-to-Value Ratio | 75% | N/A | | Loan Amount | $146,250 | N/A | | Monthly Payment | $876.84 | 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 | 1.00 | | Annual Gross Rent Multiplier | 11 | | Capitalization Rate | 5.4% | | Cash on Cash Return | 0% | | Return on Investment | 20% | | Return on Investment with IIDD | 27% | | + 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 12/12/2026 |
*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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