Birnamwood Analysis

Property Information   Expense Information  
Address: Birnamwood    
After Rehab Value: $110,000 Management Fee (%): 0.00%
Purchase Price: $78,000 Annual Maintenance:  $                              -  
Estimated Rehab costs: $7,700 Vacancy Rate: 0%
Seller Contribution: $0.00 Pest Control  $                              -  
Base Costs $85,700
Estimated spread after rehab $24,300 Refi Information  
Spread %: 77.91%    
    Initial Purchase Price Rectangular Callout: The Amount of Cash Left Invested after Refi
 $                              -  
Yearly Taxes: $2,953 Current Debt  $                              -  
Yearly HOA: $200 Current Equity 0%
Yearly Rental Insurance: $700 Target Equity 0%
Monthly Lease Amount: $1,000 Equity Cash Out  $                              -  
Target Appreciation: 50% Initial Investment  $                              -  
Target Sale Price: $165,000 Cash Invested After Refi $0.00
Financing Options   Prin.+Int. Int. Only Deferred Int.  
           
% Down Payment 10% $7,800 $7,800 $15,600  
1st Mortgage Amnt   $70,200 $70,200 $62,400  
Interest Rate   6.750% 7.000% 1.400% 7.90% <-- Annual Rate
Term (years)   30 10 40  
Monthly Payment   $455.32 $409.50 $169.85 $429.20
           
           
2nd Mortgage Amnt    $                            -    $                             -    $                              -    
Interest Rate   7.0000% 7.0000% 7.0000%  
Term          
Monthly Payment   $0.00 $0.00 $0.00  
Total Payment   $455.32 $409.50 $169.85  
Closing Costs Estimate---> Prin. + Int. Int. Only Deferred Int. Cash Purchase
Origination Fee %: Enter % 1.0% 1.0% 1.0%  
Origination Fees: Auto Fill $702 $702 $624  
Other Title Costs: Escrow fee, etc. $350 $350 $350 $350
Title Policy -Owner: includes mortgage policy if needed $225 $225 $225 $0
Doc & Closing Costs: depends on lender $1,250 $1,250 $500 $250
Mortgage Insurance: .7% Mtg if DP>10%, .9% Mtg if DP<10% $40.95 $40.95 $0.00  
Survey, Appraisal & Inspection: 375, 400, 200 $775 $775 $775 $375
Totals   $3,343 $3,343 $2,474 $975
Controlling Factors Property Information Birnamwood
Annual Rent Increases 5.00% Purchase Price $78,000.00
Annual Property Tax Change 2.00% Price + Rehab $85,700.00
Annual Appreciation Change 5.00% Market Value $110,000.00
Hold Term (years) 4 Target Resale Price $165,000.00
Expense Information Year 1 Year 2 Year 3 Year 4
Monthly Annual Monthly Annual Monthly Annual Monthly Annual
  Taxes $246 $2,953 $251 $3,012 $256 $3,072 $261 $3,134
  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 $17 $200 $17 $200 $17 $200 $17 $200
Total Expenses: $321 $3,853 $326 $3,912 $331 $3,972 $336 $4,034
Income Information
  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 $8,147 $8,688 $9,258 $9,858
Investment Summary   Principle & Interest    Interest Only   Deferred Interest  
    6.750%     7.000%     7.90%    
Total Capital Invested       $18,842.95     $18,842.95     $25,774.00  
Borrowed Capital        $          -        $             -        $              -    
Financing     Monthly Annual   Monthly Annual   Monthly Annual  
Payments     $455.32 $5,463.79   $409.50 $4,914.00   $169.85 $2,038.24  
  Mortgage Insurance (monthly) [PMI]     $40.95 $491   $40.95 $491   $0.00 $0  
Total Payments     $496.27 $5,955   $450.45 $5,405   $169.85 $2,038  
PITI     $817.35 $9,808.19   $771.53 $9,258.40   $490.94 $5,891.24  
                     
Total Expenses     $321 $3,853   $321 $3,853   $321 $3,853  
Total Income     $1,000 $12,000   $1,000 $12,000   $1,000 $12,000  
                     
Net Profit (Loss)     $183 $2,192   $228 $2,742   $509 $6,109  
Return on Capital (Year 1)       11.632%     14.550%     23.701%  
Principle Reduction       $3,438.26              
Return on Equity Line       #DIV/0!     #DIV/0!     #DIV/0!  
Deferred Interest                   $16,210.99  
Debt  to Income       109%     103%     65%  
                     
Net Income By Year   Year:   Net Inc. Year:   Net Inc. Year:   Net Inc.  
  1   $2,192 1   $2,742 1   $6,109  
  2   $2,732.75 2   $3,282.54 2   $6,649.70  
  3   $3,302.51 3   $3,852.30 3   $7,219.46  
  4   $3,902.56 4   $4,452.35 4   $7,819.51  
                     
Profit Margin By Year   Year:   Net Inc. Year:   Net Inc. Year:   Net Inc.  
(Net Income / Gross Revenue)   1   18% 1   23% 1   51%  
  2   22% 2   26% 2   53%  
  3   25% 3   29% 3   55%  
  4   28% 4   32% 4   56%  
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 $777.27 E $4,686.53       1 $1,174.37 E $863.87 1 $247.29 E $4,921.43 $4,057.56
2 $829.73   $4,634.06       2 $1,190.81   $847.43 2 $266.83   $4,902.67 $4,055.24
3 $885.74   $4,578.05       3 $1,207.49   $830.76 3 $287.91   $4,882.38 $4,051.62
4 $945.52   $4,518.27       4 $1,224.39   $813.85 4 $310.65   $4,860.42 $4,046.57
5 $1,009.35   $4,454.44       5 $1,241.53   $796.71 5 $335.19   $4,836.67 $4,039.95
Investment Return                      
Property Value    $132,000.00          $132,000.00      $ 132,000.00  
Remaining Principle   -$66,761.74         -$70,200.00     -$62,400.00  
Interest Deferred                   $16,210.99  
Equity    $ 65,238.26          $ 61,800.00      $  53,389.01  
                     
Equity Return on Capital Invested   346%         328%     207%  
Equity Return on Borrowed Capital   #DIV/0!         #DIV/0!        
Net Profit from Rents   $14,095         $16,294     $27,797  
Rent Return on Capital Invested   75%         86%     107.85%  
                     
Gross Profit from Investment    $  79,333.49          $  78,094.39      $  81,186.43  
Gross Return on Capital Invested   421%         414%     314.99%  
                     
Schedule of Net Income  Cash Invested ($18,842.95)       Cash Invested ($18,842.95)   Cash Invested ($25,774.00)  
Year 1 $2,192       Year 1 $2,742   Year 1 $6,109  
Year 2 $2,732.75       Year 2 $3,282.54   Year 2 $6,649.70  
Year 3 $3,302.51       Year 3 $3,852.30   Year 3 $7,219.46  
Year 4 $3,902.56       Year 4 $4,452.35   Year 4 $7,819.51  
Equity $65,238.26       Equity $61,800.00   Equity $53,389.01  
IRR of Investment over 4 Years   37%         38%     34%  
Using Equity, Yearly Net Income and Property Appreciation