SFH please analyze this report

[Christopher Adkins]

Hi Guys,

Please give me your feedback on this deal. I have a long term renter in place for this property. The tenant screening shows this older gentleman and his wife have a very good rental history. This is a buy and hold and I have a private lender that is willing to loan the money for the purchase over a 5 year period. I have the additional resources to pay it off sooner as almost a cash buy but I would rather finance for the 5 years. Obviously I am losing money in the first 5 years. My goal is to have this home paid off as soon as possible and use it for rental income for the long haul. Your thoughts are appreciated.

Thanks

Chris

Financial Projections

Purchase price 100,000

25,000 down payment

75,000 5 year hard money loan at 5.99 per

500 in repairs the home has been completely rehabbed and has a 2 year warranty

Total Initial Equity: $35,000.00

Gross Rent Multiplier: 8.55

Income-Expense Ratio (2% Rule): 0.95%

Typical Cap Rate: 8.00% Debt Coverage Ratio: 0.48%

ARV based on Cap Rate: $105,287.50

50% Rule Cash Flow Estimates

Total Monthly Income: $975.00

x50% for Expenses: $487.50

Monthly Payment/Interest Payment: $1,449.61

Total Monthly Cashflow using 50% Rule: -$962.11

Analysis Over Time

Year 1 Year 2 Year 3 Year 4 Year 10 Year 20 Year 30

Total Annual Income $11,700.00 $12,051.00 $12,412.53 $12,784.91 $15,265.85 $20,516.02 $27,571.82

Total Annual Expenses $20,672.34 $20,737.88 $20,804.73 $20,872.92 $3,916.32 $4,773.97 $5,819.44

Total Annual Cashflow -$8,972.34 -$8,686.88 -$8,392.20 -$8,088.01 $11,349.53 $15,742.05 $21,752.37

Cash on Cash ROI -32.04% -31.02% -29.97% -28.89% 40.53% 56.22% 77.69%

Property Value $114,950.00 $120,122.75 $125,528.27 $131,177.05 $170,826.64 $265,288.54 $411,984.99

Equity $53,491.64 $73,591.67 $94,688.18 $116,830.72 $170,826.64 $265,288.54 $411,984.99

Loan Balance $61,458.36 $46,531.08 $30,840.10 $14,346.33 $0.00 $0.00 $0.00