No pause in distributions.

Average weekly wages were at $1574, 7% higher than the national average.EditSignEmplyemnt was positive across nearly all categories, most notably in Education and Health services.EditSignAverage spending distribution remained lower than overall US, and despite the rapid growth in the City over the last 3 years, spending on housing costs is still lower than the national average by 11%.EditSignReal estate activity, unlike most markets, is remaining more energetic than most markets.

Tenants save money when using a shared meter, so there's plenty of room for error when calculating how to distribute the charges.

For further details on this parameter, please consult our user guide.We have allocated a budget of $15,000 for renovations / refurbishments.The purchase price of a 2-bedroom / 2-bathroom unit in this area is $498,000, with 5% of this price allocated for closing costs.A turnover cost of $175 per booking has been factored in, with no rental management fee assumed, indicating that you will manage bookings and cleaning services independently.The mortgage rate is set at a fixed 7% per year, with an 80% loan-to-value ratio (LTV) and a 20-year term.For the remaining parameters in our financial model, please refer to the image above.Taking these values into account, below are the results of the financial case study.Some insights:The results show the anticipated performance of a 2-bedroom / 2-bathroom unit in the southwestern area of Okaloosa Island, Florida.Expected gross revenue amounts to $78,240, derived from 47 bookings with an average stay of 5 days at an average daily rate of $325 (inclusive of cleaning fees).Total yearly expenses add up to $68,014, encompassing various costs from private mortgage insurance (PMI) to property taxes and annual loan repayments.The cash required for this deal totals $139,550, incorporating the 20% down payment for the mortgage, 5% closing costs, and the $15,000 renovations budget.Pre-tax net revenue stands at $10,226, representing a 7.33% cash-on-cash (CoC) return.The annual return on investment (ROI) is 1.9%, excluding value appreciation.

The correct valuation is what the market is willing to pay for it.You didn't provide any information on what cap rate you applied to your calculation or how you derived your NOI, all of which could play significant factors in the discrepancy.

If the distribution will merely be return of other LP's capital, that's a red flag.

REIMBURSEMENT CLAUSE:3.1 Payment Plan:Party 1 will be reimbursed 100% of the invested capital in a 10-year period (cash flow from rentals will be divided 70:30 or in the most convenient way for both parties, then cash flow will resume to a 50:50 split).3.2 Invested Capital:Party 1 shall be reimbursed 100% of the invested capital before any further distribution of profits.4.

What many investors are learning is that this leads to terrible outcomes including paused distributions and loss of principal invested.You are technically correct that debt will always multiply returns.

Fourth, getting funds out of a 401K is a bit tricky; typically you have to quit, you might get an in-service distribution, other? 

Tax Assessment – tax assessment for the property in question shows Land @ $48,920 and Improvement @ $174,300 (or a 22%/78% distribution from the total tax assessed value of $223,220).Wouldn’t be fair to use the $174,300 valuation as the basis for the CSS?