Real Estate Investment ProposalPrepared by: Phil Levy, Lic no 01850664                                                    ...
Real Estate Investment ProposalPrepared by: Phil Levy, Lic no 01850664                                                    ...
Real Estate Investment ProposalPrepared by: Phil Levy, Lic no 01850664                                                    ...
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Income Property Investing Example used in 8-2-11 presentation to BNI

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This document was used to present a real income property investing example as part of the Referral Partners Chapter of BNI.

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Income Property Investing Example used in 8-2-11 presentation to BNI

  1. 1. Real Estate Investment ProposalPrepared by: Phil Levy, Lic no 01850664 Investment Opportunity $84,968 Excluding Loan Fees PALMDALE, CA Single Family Residence, 1,546 Square Feet, 3/2 Generates approximately $5,000 in annual cash flow with a Cash on Cash return of 13.6% with 71% financing and a cap rate of 11.5%. Approximately $37,100 needed up front with 29% financing. The above agent/brokerage makes no warranty or representation about the content of this brochure. While the information displayed herein is thought to be accurate, it is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates are used for example only and do not represent the current or future performance of the property. The above agent/brokerage neither practices accounting nor gives advice regarding tax benefits/liabilities or any other tax, accounting or financial consideration, nor does the above agent/brokerage give advice regarding financial investments. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.For Information Contact: Phil Levy, Lic # 01850664Ph: 888.706.5384 8/1/2011 3:40 PMphil@jpscvrealty.com Investment Packagewww.jpscvrealty.com Page 1 of 3
  2. 2. Real Estate Investment ProposalPrepared by: Phil Levy, Lic no 01850664 Investment Financial Portrait Property Specifications Investor Notes • Positive Cash flow from Address: Property Type: Single Family Residence operations and after financing Year Built: 1984 • Convenient to shopping, Beds: 3 schools, restaurants, hospital. Baths: 2 • High distressed property area SqFt: 1,546 has depressed prices. Current List Price: $100,000 CDOM: 51 • Will require clean-up and Offer Price: $70,500 upgrades to flooring, kitchen, possibly repaint exterior • Unusual gray exterior color Downpayment: $16,000 • Needs appliances. Figures Downpayment: $24,000 Annual Cash Flow: $2,267 Annual Cash Flow: in fix-up and include $12,000 $3,019 Cash-on-Cash: 12.32% Cash-on-Cash: 11.44% appliances. Subject to inspection • Crime rate – Palmdale was slightly lower than national average in 2009. • Property is located in a nice gated community. Pro Forma (Monthly) Estimated Monthly Rental Income: $1,500 Taxes: $118 Utilities & Trash: $55 Insurance: $33 Lawn Service: $45 HOA: $73 Maintenance: $100 Property Management: $140 Vacancy Reserve: $125 Estimated Operating Expenses: $688 Estimated Net Operating Income: $812 Monthly Vacancy Carry Cost: $1,128 Estimated Operating Expenses $564 Excluding Vacancy Reserve Debt Service $392 With 71% Financing Total Estimated Carrying Cost $1,128 Recommend 6 times cash reserves The above agent/brokerage makes no warranty or representation about the content of this brochure. While the information displayed herein is thought to be accurate, it is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates are used for example only and do not represent the current or future performance of the property. The above agent/brokerage neither practices accounting nor gives advice regarding tax benefits/liabilities or any other tax, accounting or financial consideration, nor does the above agent/brokerage give advice regarding financial investments. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.For Information Contact: Phil Levy, Lic # 01850664Ph: 888.706.5384 8/1/2011 3:40 PMphil@jpscvrealty.com Investment Packagewww.jpscvrealty.com Page 2 of 3
  3. 3. Real Estate Investment ProposalPrepared by: Phil Levy, Lic no 01850664 Investment Optimization 5-Year Cumulative Cash-On-Cash Return Year 1 Year 2 Year 3 Year 4 Year 5 20% 14.15% 28.29% 42.44% 56.58% 70.73% 25% 13.92% 27.83% 41.75% 55.66% 69.58% 29% 13.57% 27.13% 40.70% 54.27% 67.83% 100% 11.46% 22.93% 34.39% 45.85% 57.32% Acquisition Costs versus Cash-on-Cash Return Cash-on- Down Acquisition Annual Cash Payment Amount Cashflow Return 10% n/a n/a n/a 20% $30,708 $4,344 14.15% 25% $34,233 $4,764 13.92% 29% $37,108 $5,034 13.57% 100% $84,968 $9,740 11.46% Finaning Assumptions: Annual Interest Rate: Varies by pct financed Term of Loan (in years): 15 Min Amount Financed 50,000.00 The above agent/brokerage makes no warranty or representation about the content of this brochure. While the information displayed herein is thought to be accurate, it is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates are used for example only and do not represent the current or future performance of the property. The above agent/brokerage neither practices accounting nor gives advice regarding tax benefits/liabilities or any other tax, accounting or financial consideration, nor does the above agent/brokerage give advice regarding financial investments. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.For Information Contact: Phil Levy, Lic # 01850664Ph: 888.706.5384 8/1/2011 3:40 PMphil@jpscvrealty.com Investment Packagewww.jpscvrealty.com Page 3 of 3

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