INVESTMENT PROPERTY WORKSHEET

 

This form is designed to assist in estimating the first year benefits of a real estate investment. It does not consider the effect of selling or exchanging the property in the future.  It is not a substitute for legal or tax advice.  Anyone contemplating the purchase of real estate for investment should seek the services of competent legal and tax advisors.  This material isdesigned to provided information about the subject property.  Due to a lack of information, some figures (*) are subjective.  Therefore, the information is done to the best of my ability to protect the prospective investor.  However, the accuracy of the information is not guaranteed. The presenter of this information is not engaged in offering legal or accounting services; and recommends that competent professional assistance be sought if needed.

         SUBJECT PROPERTY:  1531 W 14TH  - Davenport   $ 60,000 Asking Each

OFFER   PRICE          $    60.000     GENERAL DESCRIPTION   DUPLEX UP/DOWN

DOWN PAYMENT    $      6,000     10% DOWN ON OFFER   -  Rents $425  per unit.

FINANCING               $    54,000    INT. RATE 6.5% /30YR.  P&I   $341.32/MO -YR     $ 4,095.80

FINANCING                                      INT. RATE           /30 YR  P&I   $           /MO - YR

 

LAND VALUE             $    6,000       CAN NOT BE DEPRECIATED           DEPRECIATION

BUILDING VALUE    $  54,000                                           RATE    .03485                         $ 1,881.90  

PERSONAL PROPERTY VALUE      3 YEAR                 5 YEAR            TOTAL           $

LAND IMPROVEMENTS                   15 YEAR         Offer to be Written as Itemized by Purchaser

 

ANNUAL RENT          $ 10,200            LESS 5% VACANCY     =      GOI                        $ 9,690.00   

 

ANNUAL OPERATING EXPENS

      REAL ESTATE TAXES         $   1,182.00          *INSURANCE             $    450.00    

    *REPAIRS                                 $      750.00          *UTILITIES                 $

      GARBAGE                               $                           *ADVERTISING         $    100.00

    *MANAGEMENT FEES          $                          *MISCELLANEOUS   $    200.00

                                                                  TOTAL OPERATING EXPENSES                      $ 2,682.00  

 

1)   GROSS OPERATING INCOME                             $    9,690.00   

           MINUS:        OPERATING EXPENSES          - $    2,682.00  

           EQUALS:      NET OPERATING INCOME   = $   7,008.00

           MINUS:         ANNUAL DEBT SERVICE       -  $   4,095.80

           EQUALS:      CASH FLOW BEFORE TAX                                                                $ 2,912.20

 

2)    PRINCIPLE REDUCTION FOR YEAR                                                                          $   603.57  

 

3)   NET OPERATING INCOME                                     $  7,008.00

            MINUS:        INTEREST                                    -   $  3,492.23

            MINUS:        DEPRECIATION                         -    $ 1,881.90  

      TAXABLE INCOME X TAX BRACKET .28%          $ 1,633.87                                           

            EQUALS TAX (PAID) OR SAVED                                                                              $  (457.48)

 

4)   APPRECIATION       8 PURCHSE PRICE  X  2%                                                           $ 1,200.00           

 

RETURN: WITH APPRECIATION .7097 %  WITHOUT APPRECIATION  .5097 %

Cap Rate 11.68    Would offer full price and ask for $1,800 back in closing cost and/or prepaids