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|
Controlling Factors |
|
|
Property
Information |
|
Spring, TX House |
|
|
|
|
|
|
|
|
|
|
Annual Rent Increases |
5.00% |
|
Purchase Price |
$75,000.00 |
|
|
|
|
|
|
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|
|
|
|
|
|
Annual Property Tax Change |
2.00% |
|
Price + Rehab |
$78,800.00 |
|
|
|
|
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|
|
|
|
|
|
|
|
Annual Appreciation Change |
5.00% |
|
Market Value |
$110,000.00 |
|
|
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|
|
|
|
|
|
|
|
Hold Term (years) |
4 |
|
Target Resale Price |
$165,000.00 |
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|
Expense Information |
|
|
Year 1 |
|
|
Year 2 |
|
|
Year 3 |
|
|
Year 4 |
|
|
|
|
|
|
|
|
|
Monthly |
Annual |
|
Monthly |
Annual |
|
Monthly |
Annual |
|
Monthly |
Annual |
|
|
|
|
|
Taxes |
|
|
$232 |
$2,787 |
|
$237 |
$2,843 |
|
$242 |
$2,900 |
|
$246 |
$2,958 |
|
|
|
|
|
Insurance |
|
|
$58 |
$700 |
|
$58 |
$700 |
|
$58 |
$700 |
|
$58 |
$700 |
|
|
|
|
|
Lawn service |
|
|
0 |
$0 |
|
0 |
$0 |
|
0 |
$0 |
|
0 |
$0 |
|
|
|
|
|
Maintenance |
|
|
$0.00 |
$0 |
|
$0.00 |
$0 |
|
$0.00 |
$0 |
|
$0.00 |
$0 |
|
|
|
|
|
Water |
|
|
$0 |
$0 |
|
$0 |
$0 |
|
$0 |
$0 |
|
$0 |
$0 |
|
|
|
|
|
Pest control |
|
|
$0 |
$0 |
|
$0 |
$0 |
|
$0 |
$0 |
|
$0 |
$0 |
|
|
|
|
|
Lease fee |
|
|
$0.00 |
$0 |
|
$0.00 |
$0 |
|
$0.00 |
$0 |
|
$0.00 |
$0 |
|
|
|
|
|
Management fee |
|
|
$0.00 |
$0 |
|
$0.00 |
$0 |
|
$0.00 |
$0 |
|
$0.00 |
$0 |
|
|
|
|
|
HOA Dues |
|
|
$21 |
$250 |
|
$21 |
$250 |
|
$21 |
$250 |
|
$21 |
$250 |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Expenses: |
|
|
$311 |
$3,737 |
|
$316 |
$3,793 |
|
$321 |
$3,850 |
|
$326 |
$3,908 |
|
|
|
|
|
|
|
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|
Income Information |
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Rent |
|
|
$1,000.00 |
$12,000 |
|
$1,050.00 |
$12,600.00 |
|
$1,102.50 |
$13,230.00 |
|
$1,157.63 |
$13,891.50 |
|
|
|
|
|
Vacancy Allowance
(%) |
0.0% |
|
$0 |
$0 |
|
$0 |
$0 |
|
$0 |
$0 |
|
$0 |
$0 |
|
|
|
|
|
Other Income |
|
|
$0 |
$0 |
|
$0 |
$0 |
|
$0 |
$0 |
|
$0 |
$0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Scheduled Gross Income |
|
|
$1,000 |
$12,000 |
|
$1,050.00 |
$12,600.00 |
|
$1,102.50 |
$13,230.00 |
|
$1,157.63 |
$13,891.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI |
|
|
|
$8,263 |
|
|
$8,807 |
|
|
$9,380 |
|
|
$9,984 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Summary |
|
Principle
& Interest |
|
Interest Only |
|
Deferred Interest |
|
|
|
|
|
|
|
|
|
|
|
6.750% |
|
|
7.000% |
|
|
7.90% |
|
|
|
|
|
|
|
|
|
Total Capital Invested |
|
|
|
$14,614.38 |
|
|
$14,614.38 |
|
|
$21,250.00 |
|
|
|
|
|
|
|
|
Borrowed Capital |
|
|
|
$ -
|
|
|
$ - |
|
|
$ - |
|
|
|
|
|
|
|
|
Financing |
|
|
Monthly |
Annual |
|
Monthly |
Annual |
|
Monthly |
Annual |
|
|
|
|
|
|
|
|
Payments |
|
|
$437.80 |
$5,253.64
|
|
$393.75 |
$4,725.00 |
|
$163.32 |
$1,959.85
|
|
|
|
|
|
|
|
|
Mortgage Insurance
(monthly) [PMI] |
|
|
$39.38 |
$473 |
|
$39.38 |
$473 |
|
$0.00 |
$0 |
|
|
|
|
|
|
|
|
Total Payments |
|
|
$477.18
|
$5,726 |
|
$433.13 |
$5,198 |
|
$163.32
|
$1,960 |
|
|
|
|
|
|
|
|
PITI |
|
|
$788.60 |
$9,463.14
|
|
$744.54 |
$8,934.50 |
|
$474.74 |
$5,696.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Expenses |
|
|
$311 |
$3,737 |
|
$311 |
$3,737 |
|
$311 |
$3,737 |
|
|
|
|
|
|
|
|
Total Income |
|
|
$1,000 |
$12,000 |
|
$1,000 |
$12,000 |
|
$1,000 |
$12,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Profit (Loss) |
|
|
$211 |
$2,537 |
|
$255 |
$3,066 |
|
$525 |
$6,303 |
|
|
|
|
|
|
|
|
Return on Capital (Year 1) |
|
|
|
17.359% |
|
|
20.976% |
|
|
29.662% |
|
|
|
|
|
|
|
|
Principle Reduction |
|
|
|
$3,306.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Equity Line |
|
|
|
#DIV/0! |
|
|
#DIV/0! |
|
|
#DIV/0! |
|
|
|
|
|
|
|
|
Deferred Interest |
|
|
|
|
|
|
|
|
|
$15,587.49 |
|
|
|
|
|
|
|
|
Debt to Income |
|
|
|
105% |
|
|
99% |
|
|
63% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income By Year |
|
Year: |
|
Net Inc. |
Year: |
|
Net Inc. |
Year: |
|
Net Inc. |
|
|
|
|
|
|
|
|
|
|
1 |
|
$2,537 |
1 |
|
$3,066 |
1 |
|
$6,303 |
|
|
|
|
|
|
|
|
|
|
2 |
|
$3,081.12 |
2 |
|
$3,609.76 |
2 |
|
$6,847.41 |
|
|
|
|
|
|
|
|
|
|
3 |
|
$3,654.26 |
3 |
|
$4,182.91 |
3 |
|
$7,420.56 |
|
|
|
|
|
|
|
|
|
|
4 |
|
$4,257.77 |
4 |
|
$4,786.41 |
4 |
|
$8,024.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
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|
|
|
Profit Margin By Year |
|
Year: |
|
Net Inc. |
Year: |
|
Net Inc. |
Year: |
|
Net Inc. |
|
|
|
|
|
|
|
|
(Net Income / Gross Revenue) |
|
1 |
|
21% |
1 |
|
26% |
1 |
|
53% |
|
|
|
|
|
|
|
|
|
|
2 |
|
24% |
2 |
|
29% |
2 |
|
54% |
|
|
|
|
|
|
|
|
|
|
3 |
|
28% |
3 |
|
32% |
3 |
|
56% |
|
|
|
|
|
|
|
|
|
|
4 |
|
31% |
4 |
|
34% |
4 |
|
58% |
|
|
|
|
|
|
|
|
Loan Amortization Schedule |
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Interest Schedule |
|
|
|
|
|
|
|
Principle |
|
Interest |
|
|
|
|
Principle |
|
Interest |
|
|
Principle |
|
Interest |
Interest Deferred |
|
Principle Payment @ yr (est.) |
Year: |
Pd. |
|
Pd. |
|
|
|
Year: |
Pd. |
|
Pd. |
|
Year: |
Pd. |
|
Pd. |
|
|
(Annualized) |
1 |
$747.37 |
E |
$4,506.27 |
|
|
|
1 |
$1,129.20 |
E |
$830.64 |
|
1 |
$237.78 |
E |
$4,732.14 |
$3,901.50 |
|
|
2 |
$797.82 |
|
$4,455.83 |
|
|
|
2 |
$1,145.01 |
|
$814.84 |
|
2 |
$256.57 |
|
$4,714.11 |
$3,899.27 |
|
|
3 |
$851.67 |
|
$4,401.97 |
|
|
|
3 |
$1,161.04 |
|
$798.81 |
|
3 |
$276.83 |
|
$4,694.59 |
$3,895.79 |
|
|
4 |
$909.16 |
|
$4,344.49 |
|
|
|
4 |
$1,177.30 |
|
$782.55 |
|
4 |
$298.70 |
|
$4,673.48 |
$3,890.93 |
|
|
5 |
$970.53 |
|
$4,283.12 |
|
|
|
5 |
$1,193.78 |
|
$766.07 |
|
5 |
$322.30 |
|
$4,650.64 |
$3,884.57 |
|
Investment Return |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property Value |
|
$132,000.00 |
|
|
|
|
$132,000.00 |
|
|
$
132,000.00 |
|
|
|
|
|
|
|
|
Remaining Principle |
|
-$64,193.98 |
|
|
|
|
-$67,500.00 |
|
|
-$60,000.00 |
|
|
|
|
|
|
|
|
Interest Deferred |
|
|
|
|
|
|
|
|
|
$15,587.49 |
|
|
|
|
|
|
|
|
Equity |
|
$ 67,806.02 |
|
|
|
|
$ 64,500.00 |
|
|
$
56,412.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Return on Capital Invested |
|
464% |
|
|
|
|
441% |
|
|
265% |
|
|
|
|
|
|
|
|
Equity Return on Borrowed Capital |
|
#DIV/0! |
|
|
|
|
#DIV/0! |
|
|
|
|
|
|
|
|
|
|
|
Net Profit from Rents |
|
$15,420 |
|
|
|
|
$17,535 |
|
|
$28,595 |
|
|
|
|
|
|
|
|
Rent Return on Capital Invested |
|
106% |
|
|
|
|
120% |
|
|
134.57% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit from Investment |
|
$
83,226.02 |
|
|
|
|
$
82,034.58 |
|
|
$
85,007.69 |
|
|
|
|
|
|
|
|
Gross Return on Capital Invested |
|
569% |
|
|
|
|
561% |
|
|
400.04% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule of Net
Income |
Cash Invested |
($14,614.38) |
|
|
|
Cash Invested |
($14,614.38) |
|
Cash Invested |
($21,250.00) |
|
|
|
|
|
|
|
|
|
Year 1 |
$2,537 |
|
|
|
Year 1 |
$3,066 |
|
Year 1 |
$6,303 |
|
|
|
|
|
|
|
|
|
Year 2 |
$3,081.12 |
|
|
|
Year 2 |
$3,609.76 |
|
Year 2 |
$6,847.41 |
|
|
|
|
|
|
|
|
|
Year 3 |
$3,654.26 |
|
|
|
Year 3 |
$4,182.91 |
|
Year 3 |
$7,420.56 |
|
|
|
|
|
|
|
|
|
Year 4 |
$4,257.77 |
|
|
|
Year 4 |
$4,786.41 |
|
Year 4 |
$8,024.06 |
|
|
|
|
|
|
|
|
|
Equity |
$67,806.02 |
|
|
|
Equity |
$64,500.00 |
|
Equity |
$56,412.51 |
|
|
|
|
|
|
|
|
IRR of Investment over 4 Years |
|
48% |
|
|
|
|
49% |
|
|
44% |
|
|
|
|
|
|
|
|
Using Equity, Yearly Net Income and Property
Appreciation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|