Rental Project
Chandler, AZ
Bedrooms: 2, Bathrooms: 2.0, Sqft: 1000
Brought to you by:
REI/kit
(855) 234-FLIP
info@reikit.com
Deal Summary
Initial Investment
Purchase Price | $98,000 | |
Purchase Costs | $1,300 | |
Rehab Costs | $0 | |
Rehab Contingency () | $0 | |
Construction Holding Costs | $0 | |
Total Project Costs | $99,300 | |
Financing | ($74,475) | |
Cash out of Pocket | $24,825 |
Property Value
After Repair Value (ARV) | $98,000 | |
Annual Appreciation Rate | 2.00% | |
Value at Project End | $163,995 |
Project Timing
Construction Time | 0.0 Months | |
Rental During Rehab? | Yes | |
Income Starts in Month | 1 | |
Total Project Length | 27 Years |
Financial KPIs
Cash Flow (Year 1) | ($2,708) | |
Cash-On-Cash Return (Year 1) | -10.91% | |
Internal Rate of Return (Project) | 4.24% |
Monthly Cash Flow (Starting Month 1)
Income
Gross Scheduled Rents | $900 | |
Scheduled Other Income | $0 | |
Vacancy Loss | ($75) | |
Effective Monthly Income | $825 |
Expenses
Property Taxes | ($33) | |
Property Management | ($0) | |
Utilities | ($213) | |
CapExUsing average monthly | ($217) | |
Total Expenses | ($463) |
Cash Flow
Effective Monthly Income | $825 | |
Expenses | ($463) | |
Loan PaymentDoes not include origination | ($389) | |
Monthly Cash Flow | ($26) |
Cash-on-Cash Analysis (Year 1)
Income & Expenses
Income (12 Months)
Gross Scheduled Rents | $10,800 | |
Gross Other Income | $0 | |
Vacancy Loss | ($896) | |
Effective Total Income | $9,904 |
Expenses
Property Taxes | ($400) | |
Property Management | $0 | |
Utilities | ($2,550) | |
CapExUsing actual | ($5,000) | |
Total Expenses | ($7,950) |
Financing
Purchase loan | ($4,662) | |
Total Mortgage PaymentIncludes all financing costs | ($4,662) |
Cash-on-Cash Analysis
Cash Flow (Year 1)
Total Income | $9,904 | |
Expenses | ($7,950) | |
Mortgage Payment | ($4,662) | |
Total Cash Flow | ($2,708) |
Initial Investment
Purchase Price | $98,000 | |
Purchase Costs | $1,300 | |
Rehab Costs | $0 | |
Rehab Contingency (0%) | $0 | |
Construction Holding Costs | $0 | |
Total Cash Needed | $99,300 | |
Purchase Financing | ($74,475) | |
Cash out of Pocket | $24,825 |
Cash-on-Cash Return
Year 1 Cash Flow / Cash out of Pocket
-10.91%
Annual Performance
| Project Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Income | |||||||||||||||||||||||||||
| Scheduled Gross Rents | $10,800 | $11,124 | $11,458 | $11,801 | $12,155 | $12,520 | $12,896 | $13,283 | $13,681 | $14,092 | $14,514 | $14,950 | $15,398 | $15,860 | $16,336 | $16,826 | $17,331 | $17,851 | $18,386 | $18,938 | $19,506 | $20,091 | $20,694 | $21,315 | $21,954 | $22,613 | $23,291 |
| Scheduled Other Income | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Sch. Gross Income | $10,800 | $11,124 | $11,458 | $11,801 | $12,155 | $12,520 | $12,896 | $13,283 | $13,681 | $14,092 | $14,514 | $14,950 | $15,398 | $15,860 | $16,336 | $16,826 | $17,331 | $17,851 | $18,386 | $18,938 | $19,506 | $20,091 | $20,694 | $21,315 | $21,954 | $22,613 | $23,291 |
| Vacancy Loss | ($896) | ($923) | ($951) | ($980) | ($1,009) | ($1,039) | ($1,070) | ($1,102) | ($1,136) | ($1,170) | ($1,205) | ($1,241) | ($1,278) | ($1,316) | ($1,356) | ($1,397) | ($1,438) | ($1,482) | ($1,526) | ($1,572) | ($1,619) | ($1,668) | ($1,718) | ($1,769) | ($1,822) | ($1,877) | ($1,933) |
| Effective Gross Income | $9,904 | $10,201 | $10,507 | $10,822 | $11,147 | $11,481 | $11,825 | $12,180 | $12,546 | $12,922 | $13,310 | $13,709 | $14,120 | $14,544 | $14,980 | $15,429 | $15,892 | $16,369 | $16,860 | $17,366 | $17,887 | $18,424 | $18,976 | $19,546 | $20,132 | $20,736 | $21,358 |
| Operating Expenses | |||||||||||||||||||||||||||
| Property Taxes | ($400) | ($408) | ($416) | ($424) | ($433) | ($442) | ($450) | ($459) | ($469) | ($478) | ($488) | ($497) | ($507) | ($517) | ($528) | ($538) | ($549) | ($560) | ($571) | ($583) | ($594) | ($606) | ($618) | ($631) | ($643) | ($656) | ($669) |
| Property Management | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Utilities & Expenses | ($2,550) | ($2,601) | ($2,653) | ($2,706) | ($2,760) | ($2,815) | ($2,872) | ($2,929) | ($2,988) | ($3,047) | ($3,108) | ($3,171) | ($3,234) | ($3,299) | ($3,365) | ($3,432) | ($3,501) | ($3,571) | ($3,642) | ($3,715) | ($3,789) | ($3,865) | ($3,942) | ($4,021) | ($4,102) | ($4,184) | ($4,267) |
| Total OpEx | ($2,950) | ($3,009) | ($3,069) | ($3,131) | ($3,193) | ($3,257) | ($3,322) | ($3,389) | ($3,456) | ($3,526) | ($3,596) | ($3,668) | ($3,741) | ($3,816) | ($3,892) | ($3,970) | ($4,050) | ($4,131) | ($4,213) | ($4,298) | ($4,384) | ($4,471) | ($4,561) | ($4,652) | ($4,745) | ($4,840) | ($4,937) |
| Net Operating Income | $6,954 | $7,192 | $7,438 | $7,691 | $7,953 | $8,224 | $8,503 | $8,792 | $9,089 | $9,396 | $9,714 | $10,041 | $10,379 | $10,728 | $11,088 | $11,459 | $11,843 | $12,238 | $12,647 | $13,068 | $13,503 | $13,952 | $14,416 | $14,894 | $15,387 | $15,896 | $16,421 |
| Capital Expenditures | |||||||||||||||||||||||||||
| Replacements | ($5,000) | ($0) | ($0) | ($0) | ($0) | ($9,937) | ($0) | ($0) | ($0) | ($0) | ($19,504) | ($0) | ($0) | ($0) | ($0) | ($12,113) | ($0) | ($0) | ($0) | ($0) | ($8,916) | ($0) | ($0) | ($0) | ($0) | ($14,765) | ($0) |
| Net Income After Expenses | $1,954 | $7,192 | $7,438 | $7,691 | $7,953 | ($1,713) | $8,503 | $8,792 | $9,089 | $9,396 | ($9,790) | $10,041 | $10,379 | $10,728 | $11,088 | ($654) | $11,843 | $12,238 | $12,647 | $13,068 | $4,588 | $13,952 | $14,416 | $14,894 | $15,387 | $1,131 | $16,421 |
| Financing | |||||||||||||||||||||||||||
| Principal | ($1,149) | ($1,205) | ($1,264) | ($1,325) | ($1,389) | ($1,457) | ($1,527) | ($1,602) | ($1,679) | ($1,761) | ($1,846) | ($1,936) | ($2,030) | ($2,128) | ($2,232) | ($2,340) | ($2,454) | ($2,573) | ($2,698) | ($2,829) | ($2,966) | ($3,110) | ($3,261) | ($3,419) | ($3,585) | ($3,759) | ($3,942) |
| Interest + Fees | ($3,513) | ($3,457) | ($3,398) | ($3,337) | ($3,273) | ($3,205) | ($3,135) | ($3,060) | ($2,983) | ($2,901) | ($2,816) | ($2,726) | ($2,632) | ($2,534) | ($2,430) | ($2,322) | ($2,208) | ($2,089) | ($1,964) | ($1,833) | ($1,696) | ($1,552) | ($1,401) | ($1,243) | ($1,077) | ($903) | ($720) |
| Total Payment | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) | ($4,662) |
| Performance | |||||||||||||||||||||||||||
| Cash Flow | ($2,708) | $2,530 | $2,776 | $3,029 | $3,291 | ($6,375) | $3,841 | $4,130 | $4,427 | $4,734 | ($14,452) | $5,379 | $5,717 | $6,066 | $6,426 | ($5,316) | $7,181 | $7,576 | $7,985 | $8,406 | ($74) | $9,290 | $9,754 | $10,232 | $10,725 | ($3,531) | $11,759 |
| Property Value | $98,000 | $99,960 | $101,959 | $103,998 | $106,078 | $108,200 | $110,364 | $112,571 | $114,823 | $117,119 | $119,461 | $121,851 | $124,288 | $126,773 | $129,309 | $131,895 | $134,533 | $137,224 | $139,968 | $142,767 | $145,623 | $148,535 | $151,506 | $154,536 | $157,627 | $160,779 | $163,995 |
| Cap Rate | 1.99% | 7.19% | 7.29% | 7.40% | 7.50% | -1.58% | 7.70% | 7.81% | 7.92% | 8.02% | -8.20% | 8.24% | 8.35% | 8.46% | 8.57% | -0.50% | 8.80% | 8.92% | 9.04% | 9.15% | 3.15% | 9.39% | 9.51% | 9.64% | 9.76% | 0.70% | 10.01% |
| Gross Rent Multiplier (GRM) | 9.07 | 8.99 | 8.90 | 8.81 | 8.73 | 8.64 | 8.56 | 8.48 | 8.39 | 8.31 | 8.23 | 8.15 | 8.07 | 7.99 | 7.92 | 7.84 | 7.76 | 7.69 | 7.61 | 7.54 | 7.47 | 7.39 | 7.32 | 7.25 | 7.18 | 7.11 | 7.04 |
| Operating Expense Ratio (OER) | 29.79% | 29.50% | 29.21% | 28.93% | 28.65% | 28.37% | 28.09% | 27.82% | 27.55% | 27.28% | 27.02% | 26.76% | 26.50% | 26.24% | 25.98% | 25.73% | 25.48% | 25.23% | 24.99% | 24.75% | 24.51% | 24.27% | 24.03% | 23.80% | 23.57% | 23.34% | 23.11% |
| Debt Service Ratio (DSCR) | 0.42 | 1.54 | 1.60 | 1.65 | 1.71 | -0.37 | 1.82 | 1.89 | 1.95 | 2.02 | -2.10 | 2.15 | 2.23 | 2.30 | 2.38 | -0.14 | 2.54 | 2.63 | 2.71 | 2.80 | 0.98 | 2.99 | 3.09 | 3.19 | 3.30 | 0.24 | 3.52 |
| Outstanding Loans | ($73,424) | ($72,223) | ($70,965) | ($69,645) | ($68,261) | ($66,811) | ($65,289) | ($63,694) | ($62,021) | ($60,268) | ($58,429) | ($56,500) | ($54,478) | ($52,358) | ($50,135) | ($47,804) | ($45,360) | ($42,798) | ($40,111) | ($37,293) | ($34,339) | ($31,241) | ($27,993) | ($24,587) | ($21,016) | ($17,271) | ($13,345) |
| Equity | $24,576 | $27,737 | $30,994 | $34,353 | $37,817 | $41,389 | $45,075 | $48,877 | $52,801 | $56,852 | $61,033 | $65,350 | $69,809 | $74,415 | $79,174 | $84,091 | $89,173 | $94,426 | $99,857 | $105,474 | $111,284 | $117,294 | $123,513 | $129,949 | $136,611 | $143,508 | $150,650 |
| Rolling Income After Expenses | $1,954 | $9,145 | $16,583 | $24,274 | $32,228 | $30,515 | $39,018 | $47,810 | $56,899 | $66,295 | $56,505 | $66,546 | $76,925 | $87,652 | $98,740 | $98,086 | $109,929 | $122,167 | $134,814 | $147,883 | $152,471 | $166,423 | $180,839 | $195,732 | $211,119 | $212,250 | $228,672 |
| Rolling Loan Interest & Fees | ($3,513) | ($6,970) | ($10,368) | ($13,705) | ($16,978) | ($20,183) | ($23,318) | ($26,379) | ($29,361) | ($32,263) | ($35,078) | ($37,804) | ($40,437) | ($42,970) | ($45,400) | ($47,722) | ($49,931) | ($52,020) | ($53,984) | ($55,817) | ($57,513) | ($59,065) | ($60,466) | ($61,709) | ($62,785) | ($63,688) | ($64,408) |
| Acquisition & Disposition | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) | ($105,180) |
| Profit From Sale Includes sale profit and rolling income | ($8,739) | ($3,044) | $2,994 | $9,387 | $16,148 | $13,351 | $20,884 | $28,822 | $37,180 | $45,972 | $35,708 | $45,412 | $55,596 | $66,276 | $77,469 | $77,079 | $89,351 | $102,191 | $115,619 | $129,653 | $135,400 | $150,713 | $166,699 | $183,380 | $200,781 | $204,162 | $223,078 |
Purchase Costs
| Name | Type | Cost | |
| Inspection | $ Amount | $300 | |
| Closing | $ Amount | $1,000 | |
| Total Purchase Costs: | $1,300 | ||
Sale Costs
| Name | Type | Cost | |
| Commission | 5.00 % of Sale | $4,900 | |
| Closing Costs | 1.00 % of Sale | $980 | |
| Total Sale Costs: | $5,880 | ||
OpEx: Utilities & Periodic Costs
Annual Expense Growth Rate: 2.0%
| Name | Setup ($) | Amount ($/period) | Cost |
| Property Taxes | $0 | $400/ Year | $14,138 |
| Insurance | $0 | $450/Year | $15,905 |
| HOA | $0 | $175/Month | $74,223 |
| Total OpEx Costs: | $104,266 | ||
CapEx (Replacements)
Annual Expense Growth Rate: 2.0%
| Name | Initial ($) | Replacement Cost ($) | Lifespan (Yrs) | Age (Yrs) | Cost |
| Paint | $2,000 | $2,000 | 5 | 0 | $15,591 |
| Flooring | $3,000 | $3,000 | 5 | 0 | $23,386 |
| Water Heater | $0 | $1,500 | 10 | 5 | $5,714 |
| Countertops | $0 | $1,000 | 10 | 0 | $2,705 |
| Cabinets | $0 | $5,000 | 20 | 10 | $13,525 |
| HVAC | $0 | $5,000 | 20 | 10 | $13,525 |
| Appliances | $0 | $2,500 | 10 | 5 | $9,523 |
| Total CapEx Costs: | $70,235 | ||||
Loans
| Name | Amount Financed ($) | Rate (%) | Points | Fees | Term | Total of Payments |
| Purchase loan. An amortized purchase loan for the financing of purchase costs | $74,475 | 4.75% | 0.00 | $0 | 27 Years | $125,874 |
| Total Payments: | $125,874 | |||||