PRE-LEASED Home - Long-Term Tenant & NO HOA
Birmingham, AL 35206
3bd • 1ba • Built: 1965 • Remodeled: 2022
Immediate cash flow with tenant in place!
| Estimated Square Feet | 1,150 | | Initial Market Value | $160,000 | | Purchase Price | $160,000 | | Downpayment | $40,000 | | Loan Origination Fees | $2,400 | | Depreciable Closing Costs | $4,000 | | Other Costs and Fixup | $0 | | Approximate Cash Invested | $46,400 | | Cost per Square Foot / per Bedroom | $139 / $53,333 | | Monthly Rent per SQFT / per Bedroom | $1.02 / $392 |
| Projected Income | Monthly | Annual |
|---|
| Projected Rent | $1,175 | $14,100 | | Vacancy Losses | ($94) | ($1,128) | | Operating Income | $1,081 | $12,972 |
| Estimated Expenses | Monthly | Annual |
|---|
| Property Taxes | ($87) | ($1,040) | | Insurance | ($56) | ($672) | | Management Fees | ($86) | ($1,032) | | Leasing/Advertising Fees | $0 | $0 | | Association Fees | $0 | $0 | | Maintenance | ($24) | ($282) | | Other (Utilities, Supplies, etc.) | $0 | $0 | | Operating Expenses | ($252) | ($3,026) |
| Net Performance | Monthly | Annual |
|---|
| Net Operating Income | $829 | $9,946 | | - Mortgage Payments | ($625) | ($7,500) | | = Cash Flow | $204 | $2,446 | | + Principal Reduction | $0 | $0 | | + Inflation Induced Debt Destruction® (IIDD) - Beta | $300 | $3,600 | | + First-Year Appreciation | $800 | $9,600 | | = Gross Equity Income | $1,304 | $15,646 |
| | Mortgage Info | First | Second |
|---|
| Loan-to-Value Ratio | 75% | N/A | | Loan Amount | $120,000 | N/A | | Monthly Payment | $625.00 | N/A | | Loan Type | Interest Only Fixed | N/A | | Term | 10 Years | N/A | | Nominal / Real Interest Rate | 6.250% / 3.250% | N/A | | Monthly PMI | $0 | N/A |
| Empowered Investor® Indicators | |
|---|
| Rent-to-Value Ratio™ (RV Ratio™) | 0.7% | | Debt Coverage Ratio | 1.33 | | Annual Gross Rent Multiplier | 11 | | Capitalization Rate | 6.2% | | Cash on Cash Return | 5% | | Return on Investment | 26% | | Return on Investment with IIDD | 34% | | + Tax Benefits: Deductions, Depreciation, 1031 Exchange, etc. |
| Assumptions & Projections | |
|---|
| Projected Appreciation Rate | 6% | | Projected Inflation Rate | 3% | | Vacancy Rate | 8% | | Management Fee | $86 | | Maintenance Percentage | 2% |
| Comments |
|---|
| Renovated & Pre-leased in Birmingham under $200k. Current lease through April 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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