Fully renovated 3 Bed / 2 Bath home in a prime rental area. This property comes tenant-ready, offering investors immediate rental income with no repairs needed.
๐ฐ Investment Summary
Gross Potential Rent: $3,000/month or $36,000 annually
Less Vacancy (2%): โ$720
Effective Gross Income: $35,280
๐งพ Operating Expenses
Property Management (10% of gross): $3,600
Property Taxes: $2,500
Repairs & Maintenance: $0
Insurance and Utilities: $1,200
Total Operating Expenses: $7,300
Net Operating Income (NOI): $27,980
๐ฆ Debt Service (Mortgage & Interest)
Loan Amount: $202,400
Interest Rate: 7.00%
Loan Term: 30 years
Monthly Payment: approximately $1,346.58
Annual Debt Service: around $16,159
Cash Flow Before Taxes (CFBT): $27,980 โ $16,159 = $11,821
๐ Depreciation Deduction
Depreciable Basis (80% of Purchase Price): $202,400
Depreciation Period: 27.5 years
Annual Depreciation: $7,360
๐ Return Metrics
Return on Cost (NOI รท Purchase Price): 27,980 รท 253,000 = 11.1%
Initial Equity (20% down): $50,600
Cash-on-Cash Return (CFBT รท Equity): 11,821 รท 50,600 = 23.4%
