@Wayne Brooks The numbers are tight and I wasn't sure if I wanted to share them with everyone. But it's a learning experience and for my current situation it helps me get one step closer to my financial goals.
Here is my 2-year plan and numbers:
Currently, I am in debt: I have 0% interest on my current credit cards and have 18 and 21 months (two different cards) to pay it off before the interest is jacked up. That is going to cost me $700/mo (after 18/mo I pay $300/mo) to get this all paid off.
When I move into one of the units, I will be paying half what I normally pay in rent, saving me $900. That money is going to pay off my debt. The extra income, the building brings in will be set aside for repairs, vacancy loss, and savings to buy another building. I have two years to go before I have no car payment and no credit card debt.
Once I move out of the unit, I will rent it at market value, hopefully, it will be higher rent at that point. If I feel the market has increased at any point, I will have an appraisal done and hopefully, remove the PMI.
The owner is paying for closing cost and pre-paid fees/expenses.
I don't know what the trash or water bill will be...I am guessing on those numbers.
| Purchase Price | $350,000.00 |
| down payment | 12,250.00 |
| Loan Amount | 337,750.00 |
| Loan Payments/ Yr @ 3.25% 30yr | $17,833.20 |
| loan payments/monthly | 1,486.10 |
| Water, Sewer, Gas | 1920 |
| Lawn Maintance | 300 |
| Trash | 360 |
| Insurance | 3600 |
| PMI | 2844 |
| Taxes | 3,852.00 |
| Operating Expense (OE) | $12,876.00 |
| OE per month | $1,073.00 |
| Rent Roll |
| Apt 1 | 800 |
| Apt 2 | 800 |
| Apt 3 | 750 |
| Apt 4 | 850 |
| GPI per month | $3,200.00 |
| (GPI) Gross Potential Income | $38,400.00 |
| Vacancy Loss 10% | 3,840.00 |
| Effective Gross Income | $34,560.00 |
| other income W&D | $600.00 |
| GOI | $35,160.00 |
| (NOI) Net operating income | $25,524.00 |
| NOI monthly | $2,127.00 |
| RRA 10% (replacement reserves account) | $2,552.40 |
| BTCF (Before Tax Cash Flow) | $5,138.40 |
| BTCF monthly | $428.20 |
| CAP RATE | 7.3% |
| Cash on Cash Return (%) | 41.9% |
| DCR (Debt Coverage Ratio) | 1.43 |
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