Pre-Leased Property
Memphis, TN 38133
3bd • 2ba • Built: 1976
Client Resale
| Estimated Square Feet | 1,427 | | Initial Market Value | $175,000 | | Purchase Price | $175,000 | | Downpayment | $43,750 | | Loan Origination Fees | $0 | | Depreciable Closing Costs | $7,000 | | Other Costs and Fixup | $10,000 | | Approximate Cash Invested | $60,750 | | Cost per Square Foot / per Bedroom | $123 / $58,333 | | Monthly Rent per SQFT / per Bedroom | $0.91 / $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 | ($131) | ($1,575) | | Insurance | ($73) | ($875) | | 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 | ($403) | ($4,837) |
| Net Performance | Monthly | Annual |
|---|
| Net Operating Income | $788 | $9,460 | | - Mortgage Payments | ($787) | ($9,443) | | = Cash Flow | $1 | $17 | | + Principal Reduction | $134 | $1,612 | | + Inflation Induced Debt Destruction® (IIDD) - Beta | $328 | $3,938 | | + First-Year Appreciation | $875 | $10,500 | | = Gross Equity Income | $1,339 | $16,066 |
| | Mortgage Info | First | Second |
|---|
| Loan-to-Value Ratio | 75% | N/A | | Loan Amount | $131,250 | N/A | | Monthly Payment | $786.91 | 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 | 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 |
|---|
| Tenant is Month to Month |
*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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