Detailed rental analysis for 3314 Frayser View Dr, assessing income, expenses, cash flow, and investment returns
Line Item Amount
Gross Potential Rent (12 ร $1,355) $16,260.00
Less: Vacancy (2% of $16,260) $325.20
Effective Gross Income ($16,260 – $325.20) $15,934.80
Operating Expenses
Property Management (10% of $16,260) $1,626.00
Property Taxes ($2,500) $2,500.00
Repairs / Maintenance ($0 assumed) $0.00
Insurance, Utilities, etc. ($1,000) $1,000.00
Total Operating Expenses ($1,626 + $2,500 + $0 + $1,000) $5,451.20
Net Operating Income (NOI) ($15,934.80 – $5,451.20) $10,483.60
Debt Service (Mortgage P&I)
Loan amount (80% of $135,500) $108,400.00
Interest rate 8%
Term 30 years
Monthly payment (calculated from 8% / 30 yrs) $795.40
Annual debt service ($795.40 ร 12) $9,544.80
Cash Flow Before Taxes (CFBT) ($10,483.60 – $9,544.80) $938.80
Depreciation Deduction
Depreciable basis (80% of $135,500) $108,400.00
Depreciation period 27.5 years
Annual depreciation ($108,400 รท 27.5) $3,942.91
Return on Cost (NOI รท Purchase Price) ($10,483.60 รท $135,500) 7.74%
Cash-on-Cash Return
Initial equity (20% of $135,500) $27,100.00
Year-1 CFBT / equity ($938.80 รท $27,100) 3.46%
