Pre-Leased Property
Memphis, TN 38141
3bd • 2ba • Built: 1987
Client Resale
| Estimated Square Feet | 1,229 | | Initial Market Value | $158,400 | | Purchase Price | $158,400 | | Downpayment | $39,600 | | Loan Origination Fees | $0 | | Depreciable Closing Costs | $6,336 | | Other Costs and Fixup | $10,000 | | Approximate Cash Invested | $55,936 | | Cost per Square Foot / per Bedroom | $129 / $52,800 | | Monthly Rent per SQFT / per Bedroom | $1.05 / $432 |
| Projected Income | Monthly | Annual |
|---|
| Projected Rent | $1,295 | $15,540 | | Vacancy Losses | ($104) | ($1,243) | | Operating Income | $1,191 | $14,297 |
| Estimated Expenses | Monthly | Annual |
|---|
| Property Taxes | ($119) | ($1,426) | | Insurance | ($66) | ($792) | | Management Fees | ($95) | ($1,144) | | Leasing/Advertising Fees | $0 | $0 | | Association Fees | $0 | $0 | | Maintenance | ($104) | ($1,243) | | Other (Utilities, Supplies, etc.) | $0 | $0 | | Operating Expenses | ($384) | ($4,605) |
| Net Performance | Monthly | Annual |
|---|
| Net Operating Income | $808 | $9,692 | | - Mortgage Payments | ($712) | ($8,547) | | = Cash Flow | $95 | $1,145 | | + Principal Reduction | $122 | $1,459 | | + Inflation Induced Debt Destruction® (IIDD) - Beta | $297 | $3,564 | | + First-Year Appreciation | $792 | $9,504 | | = Gross Equity Income | $1,306 | $15,672 |
| | Mortgage Info | First | Second |
|---|
| Loan-to-Value Ratio | 75% | N/A | | Loan Amount | $118,800 | N/A | | Monthly Payment | $712.27 | 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™) | 0.8% | | Debt Coverage Ratio | 1.13 | | Annual Gross Rent Multiplier | 10 | | Capitalization Rate | 6.1% | | Cash on Cash Return | 2% | | Return on Investment | 22% | | Return on Investment with IIDD | 28% | | + 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 3/3/2027 |
*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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