| Market Value |
$100,000 |
|
| Cost |
$75,000 |
|
| Equity |
$25,000 |
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| |
|
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| Cash flow analysis |
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| Monthly Rents |
$1,000 |
|
| Vacancy (8%) |
($80) |
|
| Property management (10%) |
($92) |
|
| Property taxes / insurance |
($125) |
|
| Repairs (5%) |
($50) |
|
| Net Monthly Cash flow |
$653 |
|
| Net Annual Cash flow |
$7,836 |
|
| Depreciation Benefits (30% tax rate) |
$654 |
|
| Cash flow after taxes |
$8,490 |
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| |
|
|
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| Return on investment analysis |
| Equity |
$25,000 |
|
| Cash flow |
$8,490 |
|
| TOTAL WEALTH INCREASE |
$33,490 |
|
| |
|
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| RETURN ON INVESTMENT |
44.65% |
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| |
|
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| Also buy turn-key with financing |
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|
20% down; 700+ credit score |
|
|
$16k down |
|
|
200+ /month positive cash flow |
|
|
20% + cash flow ROI |
|
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Total ROI 150%+ |
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