Current Opportunities
FOUR PLEX CONVERSIONS
PROFORMA
Purchase Summary - Price
$655,000
Down/Closings
$196,500 (30% down)
Loan
$458,500
Cash flow - Rent
$4020
Total payment
$3996 (piti/assoc.)
Positive
Monthly $ 124 (Includes 10% management)
Market Value (As Town home)
$840,000 ($210K/Unit)
Projected Timeframe – (2-3 years)
Price projection is based on new town homes selling
at $210-230,000 that are smaller than ours.
Investment Summary - Sales Price
$840,000 ($210,000/unit)
Cost of Sale
(6%) $ 50,400
Original
Cost $665,000 (price/closings)
Gross Profit
$124,600*
Return on Investment – Gross Profit
$124,600
- Capital Invested
$196,500
- Gross Return
on Capital - 63.4%*
*All figures are projections and based on criteria
as presented.
*Current sales of market comparables are now at
$235,000
*All data updated 4/16/07
Income
Property
Four Units
Goal – Buy to generate income long term
Price – $655,000
Loan - $458,500
Cash flow - Rent $4100
$3174
7.4% PI payment
$1000
taxes, ins, assoc, management
Monthly cash flow $ (74)
Extra payment/month $ (265) (one payment
per year)
Pays off loan in 244 months
Saves $368,249 on loan
Extra payments $ 64,660 over 244 months
Gross savings $303,711
Cash flow $3100 per month (loan paid
off)
Figures presume NO rent increases
Comparison - $600,000 asset earning 6% pays $3000
monthly.
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