Scenario 3 – Investment Loan 25% downpayment 75% loan 30 yr fixed @ 5%
(example, market rates may vary)
Cash Flow Analysis
Property type: Single Family Residence
Purchase Price: $145,000 (may vary)
Down Payment: $36,250 (25%)
Loan Amount: $108,750
Mortgage Pmt: $584 (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: $898/mo
Rental Comps: $1295/month (estimate, rate may vary)
Monthly cash flow: $1,295-$898=$397
Yearly cash flow: $4,764
1st Year Principal Reduction: $1,604
ROI = cash flow/down payment $4,764/$36,250=13.1%
ROI w/ principal reduction included (yearly cash flow+1st Year Principal Reduction)/down payment=
6,368/$36,250=17.5%
