Scenario 2 – Investment Loan 20% downpayment 80% loan 30 yr fixed @ 5%
(example, market rates may vary)
Cash Flow Analysis
Propert type: Single Family Residence
Purchase Price: $145,000 (may vary)
Down Payment: $29,000 (20%)
Loan Amount: $116,000
Mortgage Pmt: $623 (assuming 30yr fixed at 5%, market rates may vary)
Taxes: $126/mo
Insurance: $35/mo (estimate, rate may vary)
HOA fee: $41/mo (estimate, rate may vary)
Property Management: $112/mo $(assuming an 8% fee)
Total Monthly Expense: $937/mo
Rental Comps: $1395/month (estimate, rate may vary)
Monthly cash flow: $1,395-$937=$458
Yearly cash flow: $5,496
1st Year Principal Reductions: $1,711
ROI = cash flow/down payment $5,496/$29,000=19%
ROI w/ principal reduction included (yearly cash flow+1st Year Principal Reduction)/down payment=
7,207/$29,000=25%
Share this post
