Investment Overview:
This newly built property offers a turnkey opportunity ideal for investors seeking immediate stability and long-term growth. With modern construction, minimal maintenance, and strong rental demand, it provides a dependable income stream from day one. The layout and build quality ensure lasting value, making it suitable for both buy-and-hold and future resale strategies. A solid, low-risk addition to any investment portfolio.
Property Financing
Closing Costs $3,000
Interest Rate 7.50%
Percentage Down 20%
Purchase & Equity
Market or Appraised Value $175,000
Purchase Price $170,000
Initial Equity $5,000
Down Payment 20%
Amount Financed $136,000 80%
Down Payment Amount $34,000 20%
Closing Costs & Fees $3,000 Approximate
Total Cash Investment $37,000
Loan Terms
Interest Rate (30 yr Fixed) 7.75%
Debt Service (P&I) Monthly $974
Debt Service (P&I) Yearly $11,692
Income & Rent
Monthly Rent (GSI) $1,750
Annual Property Tax $1,500 Most are just above or just below this amount
Annual Utilities (owner cost) $0 Tenants pay
Owners Additional Costs $0 Zero in the first year with the warranty
Annual Insurance Premium $1,275
Operating Assumptions
Vacancy Rate (% of GSI) 3%
Maintenance Rate (% of GSI) 3%
Property Mgmt Rate (% of GSI) 8%
Gross Income
Gross Scheduled Income (GSI) $21,000
Less Vacancy Amount -$630
Gross Operating Income (GOI) $20,370
Operating Expenses
Property Management -$1,680
Annual Property Taxes -$1,500 Owner paid
Annual Utilities $0 Tenant pays all
Annual Landscaping $0 Tenant handles
Annual Insurance Premium $1,275 Owner paid
Repairs & Maintenance -$630 Reserves
Total Operating Expenses -$2,535
Net Operating Income & Cash Flow
Net Operating Income $17,835
Less Debt Service -$11,692
Cash Flow $6,143
Cash-On-Cash ROI
Cash-On-Cash ROI from Rent income only-yr 1 16.60%
Cash-On-Cash ROI w/ Depreciation added-yr 1 21.86%
Cash-On-Cash ROI w/ Appreciation added-yr 1 40.77%
Cash-On-Cash ROI w/ Tenant paying down loan-yr 1 47.02%
ROI for additional tax deductions not calculated as it varies for each individual
Projected 10-Year ROI
Total Cash-On-Cash ROI projected in yr 10 489.92%