|
|
| I. Property |
|
* Purchase Price: |
$
|
II. Financing |
* 1st loan: |
$
|
* Principal & Interest per month on 1st loan: |
$
|
* 2nd loan: |
$
|
* Principal & Interest per month on 2nd loan: |
$
|
= Total Financed Amount: |
$
|
| III. Initial Investment |
Down payment: |
$
|
* + Closing cost: |
$
|
= Total Initial Investment: |
$
|
IV. Annual Income |
* Monthly rent: |
$
|
* - Annual vacancy rate: |
%
|
* + Other Income: |
$
|
= Annual Gross Income: |
$
|
V. Depreciation
|
Purchase price: |
$
|
* - Land value: |
$
|
= Inprovement value: |
$
|
* Depreciation class:
27.5 yrs for residential rental properties
39 yrs for non-residential rental properties
|
|
VI. Net Operating Income
|
Gross Income: |
$
|
* - Annual operating expenses: |
$
|
= Net Operating Income (NOI): |
$
|
VII. Principal Reduction |
Annual debt service: |
$
|
* - Annual interst paid: |
$
|
= Principal reduction: |
$
|
VIII. Annual Appreciation |
Purchase price: |
$
|
* x Annual appreciation rate: |
%
|
= Annual Appreciation: |
$
|
IX. Cash flow before taxes (CFBT) |
NOI: |
$
|
- Debt Service (DS): |
$
|
= CFBT: |
|
X. Tax Savings/Liability |
NOI: |
$
|
- Annual interest payment: |
$
|
- Depreciation: |
$
|
= Taxable Income/loss: |
$
|
* x Tax bracket (Fed + State) |
%
|
= Tax savings if negative/ tax liablity if positive: |
|
XI. Cash flow after taxes (CFAT) |
CFBT: |
|
- Tax savings/ tax liablity: |
|
= CFAT: |
|
XII. Indicators |
ROI = (CFAT + Principal reduction + Appreciation)/ Initial Investment: |
%
|
Cap Rate = NOI/Purchase price: |
%
|
Cash on cash = CFBT/Cash Invested: |
%
|
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