Prepared By     Key Investment Criteria Client Name     Max Offer  $       425,000   Property Address     Down Payment  $                 -    Number of Units 12   Cash Flow (Per 100K) $88.30   List Price  $     425,000 % of List Price   Cash Flow (Monthly)  $         375.29   Offer Price  $     425,000 100%   Total Cash In  $    10,000.00   ARV/Appraised Value  $     450,000   Debt Service CR 1.16 Pref >1.2 Discount (%,$) 0%  $                 -     Debt Yield Ratio 7.65% Pref >10% Purchase Price (Max Offer Price)  $     425,000     Cap Rate 7.47% Pref >8% Percent Down 0%     LTV 1.00 Pref <.75 Down Payment Amount  $               -      Rent/Price Ratio 1.35% Pref 1.25% Amount Financed  $     425,000     COC ROI Year 1 218.0%   Interest Rate 5.20%     (Exp+Int)/Income 84%   Costs of Repairs  $         5,000     Gross Rent Multiplier 6.3 Pref <9 Closing Costs  $         5,000     COC Return 45.0% Pref >10% Total Cost  $     435,000     Break Even Ratio 93% Pref <85% Length of Mortgage (Years) 30     Expense Ratio 53% ~50% Payment Monthly Annual   ARV-Total Cost  $         15,000   Monthly Mortgage Payment $2,333.72  $      28,004.65   % Investment of ARV 96% Pref <75%     10 year Return 65% $284,164 Rental Income Monthly Annual   15 Year Return 113% $490,037 Unit A (10 unit Apt)  $    4,550.00  $      54,600.00   20 Year Return 172% $748,269 Unit B (Duplex)  $    1,250.00  $      15,000.00       Unit C  $               -   $                  -    DSCR greater than 1.45 1.16 Unit D  $               -   $                  -    Standardized Cashflow >180 $88.30 Gross Rental Income  $    5,800.00  $      69,600.00   LTV less than .76 1.00 Vacancy Rate 8%     ROI year 1 greater than 20% 218.0% Net Rental Income  $    5,336.00  $      64,032.00   Expense ratio between 45 and 55% 53%     Positive initial equity  $     15,000 Expenses Monthly  Annual   15 year return greater than 115% 113% Property Management Fees  $           320.16  $       3,841.92 6.0% Total Cash In Less than 50K  $     10,000 Leasing Costs  $                  -    $                  -  0% DYR greater than 9%   7.65% Maintenance Reserve  $           750.00  $       9,000.00         Utilities  $           375.00  $            4,500         PropertyTaxes   $           640.17  $       7,682.00     Insurance  $           325.00  $       3,900.00       Other (Snow, Lawn Care, Trash, etc)  $           216.67  $       2,600.00     Total Expenses  $    2,626.99  $      31,523.92               Net Operating Income  $    2,709.01  $      32,508.08                   Mortgage Payment  $    2,333.72  $      28,004.65         Total Cash In (Downpayment + Repairs)   $   10,000.00           Net Cash Flow  $       375.29  $       4,503.43                   Investment Analysis         Appreciation Rate (20 YR AVG = 4.4%) 2.5%           Rent Appreciation (20 YR AVG = 3.1%) 2.5%         Cost to Sell Property 0.0%        

Certainly there's terms on the loan we have to honor but he's in the same boat utilizing agency financing as a preferred buyer.

Some people utilize a seller's concession to assist with the payment of closing costs. 

Before I did that, as a young professional I rented room shares from other people so instead of signing a $1000+ lease for an apartment and having to furnish it and pay for utilities, I’d rent a furnished room in a house within 10 mins walking of my job for $500-600 utilities included.

When I'm analyzing a potential deal, I've been factoring leasing fee (1/12th rent per month) + PM Fee + 7.5% CapEx + 7.5% Repairs + Principle + Interest + Taxes/month + Insurance/mo + Vacancy (10%)... going with the thought that tenants in single family rentals will be responsible for mowing the lawn and all utilities.  

I have a good amount of experience with development locally and if you are buying mostly land then I could see how a title search(along with zoning, utilities, ect.) might be more important with tax deeds than an existing SFR. 

This includes utilities.

Labor, as you know, and materials are going up in price by quite a bit.

There are programs that utilize the operating statements and rent rolls instead of Schedule E's.

We will target C to B multifamily apartments, while utilizing the BRRRR strategy to build equity.