Investment Opportunity
Hammond, IN 46324
3 Bed 1 Bath Home | Built in 1953
Square Feet | 800 | Initial Market Value | $125,000 | Purchase Price | $125,000 | Downpayment | $31,250 | Loan Origination Fees | $2,109 | Depreciable Closing Costs | $6,250 | Other Closing Costs and Fixup | $0 | Initial Cash Invested | $39,609 | Cost per Square Foot | $156 | Monthly Rent per Square Foot | $1.69 |
Income | Monthly | Annual |
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Gross Rent | $1,350 | $16,200 | Vacancy Losses | ($108) | ($1,296) | Operating Income | $1,242 | $14,904 |
Expenses | Monthly | Annual |
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Property Taxes | ($208) | ($2,500) | Insurance | ($63) | ($750) | Management Fees | ($124) | ($1,490) | Leasing/Advertising Fees | $0 | $0 | Association Fees | $0 | $0 | Maintenance | ($108) | ($1,296) | Other | $0 | $0 | Operating Expenses | ($503) | ($6,036) |
Net Performance | Monthly | Annual |
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Net Operating Income | $739 | $8,868 | - Mortgage Payments | ($623) | ($7,477) | = Cash Flow | $116 | $1,391 | + Principal Reduction | $80 | $954 | + First-Year Appreciation | $625 | $7,500 | = Gross Equity Income | $820 | $9,845 | + Tax Savings | $43 | $521 | = GEI w/Tax Savings | $864 | $10,366 |
| Mortgage Info | First | Second |
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Loan-to-Value Ratio | 75% | 0% | Loan Amount | $93,750 | $0 | Monthly Payment | $623.09 | $0.00 | Loan Type | Amortizing Fixed | | Term | 30 Years | | Interest Rate | 6.990% | 0.000% | Monthly PMI | $0 | |
Financial Indicators | |
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Debt Coverage Ratio | 1.19 | Annual Gross Rent Multiplier | 8 | Monthly Gross Rent Multiplier | 93 | Capitalization Rate | 7.1% | Cash on Cash Return | 4% | Total Return on Investment | 25% | + Tax Benefits: Deductions, Depreciation, 1031 Exchange, etc. |
Assumptions | |
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Real Estate Appreciation Rate | 6% | Vacancy Rate | 8% | Management Fee | 10% | Maintenance Percentage | 8% | *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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