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Controlling Factors[1] |
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|
Property
Information |
|
DR Horton New Homes |
|
|
Annual Rent Increases |
5.00% |
|
Purchase Price |
$110,000.00 |
|
|
Annual Property Tax Change |
2.00% |
|
Price + Rehab |
|
$102,600.00 |
|
|
Annual Appreciation Change |
5.00% |
|
Market Value |
|
$118,000.00 |
|
|
Hold Term (years) |
4 |
|
Target Resale Price |
$177,000.00 |
|
|
|
|
|
|
|
|
Expense Information |
|
|
Year 1 |
|
Year 2 |
|
Year 3 |
|
Year 4 |
|
|
|
Monthly |
Annual |
|
Monthly |
Annual |
|
Monthly |
Annual |
|
Monthly |
Annual |
|
|
Taxes |
|
|
$267 |
$3,200 |
|
$272 |
$3,264 |
|
$277 |
$3,329 |
|
$283 |
$3,396 |
|
|
Insurance |
|
|
$75 |
$900 |
|
$75 |
$900 |
|
$75 |
$900 |
|
$75 |
$900 |
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Expenses: |
|
|
$363 |
$4,350 |
|
$368 |
$4,414 |
|
$373 |
$4,479 |
|
$379 |
$4,546 |
|
|
|
Income Information |
|
|
|
|
|
|
Base Rent |
|
|
$1,195.00 |
$14,340 |
|
$1,254.75 |
$15,057.00 |
|
$1,317.49 |
$15,809.85 |
|
$1,383.36 |
$16,600.34 |
|
|
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 |
|
|
$1,195 |
$14,340 |
|
$1,254.75 |
$15,057.00 |
|
$1,317.49 |
$15,809.85 |
|
$1,383.36 |
$16,600.34 |
|
|
|
NOI |
|
$9,990 |
|
$10,643 |
|
$11,331 |
|
$12,054 |
|
|
|
Investment Summary |
|
Principle &
Interest |
|
Interest Only |
|
Deferred Interest |
|
|
|
|
|
|
8.125% |
|
|
7.750% |
|
|
7.90% |
|
|
|
Total Capital Invested |
|
|
$7,080.00
|
|
$7,080.00
|
|
$6,330.00
|
|
|
|
Borrowed Capital |
|
|
$
11,000.00 |
|
$
11,000.00 |
|
$
11,000.00 |
|
|
|
Financing |
|
|
Monthly |
Annual |
|
Monthly |
Annual |
|
Monthly |
Annual |
|
|
|
Payments |
|
|
$745.06 |
$8,940.77
|
|
$660.00
|
$7,920.00 |
|
$358.15 |
$4,297.84
|
|
|
|
Mortgage Insurance
(monthly) [PMI] |
|
$0.00 |
$0 |
|
$0.00 |
$0 |
|
$0.00 |
$0 |
|
|
|
Total Payments |
|
|
$745.06
|
$8,941 |
|
$660.00 |
$7,920 |
|
$358.15
|
$4,298 |
|
|
|
PITI |
|
$1,107.56 |
$13,290.77
|
|
$1,022.50
|
$12,270.00 |
|
$720.65 |
$8,647.84
|
|
|
|
|
|
|
|
|
|
Total Expenses |
|
$363 |
$4,350 |
|
$363 |
$4,350 |
|
$363 |
$4,350 |
|
|
|
Total Income |
|
$1,195 |
$14,340 |
|
$1,195 |
$14,340 |
|
$1,195 |
$14,340 |
|
|
|
|
|
|
|
|
Net Profit (Loss) |
|
$87
|
$1,049
|
|
$173 |
$2,070 |
|
$474
|
$5,692
|
|
|
|
Return on Capital (Year 1)[2] |
|
14.820% |
|
29.237% |
|
89.924% |
|
|
|
Principle Reduction |
|
|
|
$3,427.30 |
|
|
|
|
|
|
Return on Equity Line |
|
9.54% |
|
18.82% |
|
51.75% |
|
|
|
Deferred Interest |
|
|
|
$16,407.78 |
|
|
|
Debt to Income[3] |
|
124% |
|
114% |
|
80% |
|
|
|
|
|
|
|
|
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|
|
|
|
Net Income By Year |
|
Year: |
|
Net Inc. |
Year: |
|
Net Inc. |
Year: |
|
Net Inc. |
|
|
|
|
|
1 |
|
$1,049 |
1 |
|
$2,070 |
1 |
|
$5,692 |
|
|
|
|
|
2 |
|
$1,702.23 |
2 |
|
$2,723.00 |
2 |
|
$6,345.16 |
|
|
|
|
|
3 |
|
$2,389.80 |
3 |
|
$3,410.57 |
3 |
|
$7,032.73 |
|
|
|
|
|
4 |
|
$3,113.71 |
4 |
|
$4,134.48 |
4 |
|
$7,756.64 |
|
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|
|
|
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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 |
|
7% |
1 |
|
14% |
1 |
|
40% |
|
|
|
|
|
2 |
|
11% |
2 |
|
18% |
2 |
|
42% |
|
|
|
|
|
3 |
|
15% |
3 |
|
22% |
3 |
|
44% |
|
|
|
|
|
4 |
|
19% |
4 |
|
25% |
4 |
|
47% |
|
|
|
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 |
$759.19 |
E |
$8,181.58 |
|
1 |
$1,456.91 |
E |
$2,840.93 |
|
1 |
$348.75 |
E |
$6,940.48 |
$4,099.54 |
|
|
2 |
$820.87 |
|
$8,119.90 |
|
2 |
$1,486.04 |
|
$2,811.79 |
|
2 |
$376.30 |
|
$6,914.02 |
$4,102.23 |
|
|
3 |
$887.57 |
|
$8,053.20 |
|
3 |
$1,515.76 |
|
$2,782.07 |
|
3 |
$406.02 |
|
$6,885.40 |
$4,103.33 |
|
|
4 |
$959.68 |
|
$7,981.09 |
|
4 |
$1,546.08 |
|
$2,751.76 |
|
4 |
$438.10 |
|
$6,854.44 |
$4,102.68 |
|
|
5 |
$1,037.65 |
|
$7,903.12 |
|
5 |
$1,577.00 |
|
$2,720.84 |
|
5 |
$472.71 |
|
$6,820.94 |
$4,100.10 |
|
Investment Return |
|
|
|
|
|
Property Value |
|
$141,600.00 |
|
|
$141,600.00 |
|
$ 141,600.00 |
|
|
|
Remaining Principle |
|
-$95,572.70 |
|
|
-$99,000.00 |
|
-$99,000.00 |
|
|
|
Interest Deferred |
|
|
|
|
|
|
$16,407.78 |
|
|
|
Equity |
|
$ 46,027.30 |
|
|
$ 42,600.00 |
|
$
26,192.22 |
|
|
|
|
|
|
|
|
Equity Return on Capital Invested |
|
650% |
|
|
602% |
|
414% |
|
|
|
Equity Return on Borrowed Capital |
|
418% |
|
|
387% |
|
|
|
|
|
Net Profit from Rents |
|
$8,255 |
|
|
$12,338 |
|
$26,827 |
|
|
|
Rent Return on Capital Invested |
|
117% |
|
|
174% |
|
423.80% |
|
|
|
|
|
|
|
|
Gross Profit from Investment[4] |
|
$
54,282.27 |
|
|
$
54,938.05 |
|
$
53,018.91 |
|
|
|
Gross Return on Capital Invested[5] |
|
767% |
|
|
776% |
|
837.58% |
|
|
|
|
|
|
|
|
Schedule of Net Income |
Cash Invested |
($7,080.00) |
|
|
Cash Invested |
($7,080.00) |
|
Cash Invested |
($6,330.00) |
|
|
|
Year 1 |
$1,049 |
|
|
Year 1 |
$2,070 |
|
Year 1 |
$5,692 |
|
|
|
Year 2 |
$1,702.23 |
|
|
Year 2 |
$2,723.00 |
|
Year 2 |
$6,345.16 |
|
|
|
Year 3 |
$2,389.80 |
|
|
Year 3 |
$3,410.57 |
|
Year 3 |
$7,032.73 |
|
|
|
Year 4 |
$3,113.71 |
|
|
Year 4 |
$4,134.48 |
|
Year 4 |
$7,756.64 |
|
|
|
Equity |
$46,027.30 |
|
|
Equity |
$42,600.00 |
|
Equity |
$26,192.22 |
|
|
|
IRR of Investment over 4 Years |
|
58% |
|
|
65% |
|
104% |
|
|
|
Using Equity, Yearly Net Income and
Property Appreciation |
|
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