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Acquisition
Purchase Price$495,000
Closing Costs2.5%
Financing
Mortgage Rate7.00%
Remodel Budget (Upfront)
Remodel Costs$52,000
Rental Income
Market Rent$3,600/mo
Operating Expenses
HOA$300/mo
Property Tax1.25%
Insurance$100/mo
Total Upfront
$559,375
all-cash purchase + reno
Monthly Cash Flow
+$2,684
after all expenses
Break-Even
17y 5m
month 209 (cash flow only)
Cap Rate
5.76%
on total cost basis
Cost & Income Breakdown
Purchase price$495,000
Closing costs$12,375
Remodel budget$52,000
Total Upfront Cost$559,375
Gross monthly rent$3,600
− HOA$300
− Property tax$516
− Insurance$100
− Mortgage P&I$0 (cash)
Net Monthly Cash Flow+$2,684
Month-by-Month Cumulative Position
Cash flow only
Break-even hit
YearRentExpensesNet CFCumulative CFPosition vs Upfront
Yr 2$3,600$916+$2,684$64,425−$494,950
Yr 4$3,600$916+$2,684$128,850−$430,525
Yr 6$3,600$916+$2,684$193,275−$366,100
Yr 8$3,600$916+$2,684$257,700−$301,675
Yr 10$3,600$916+$2,684$322,125−$237,250
Yr 12$3,600$916+$2,684$386,550−$172,825
Yr 14$3,600$916+$2,684$450,975−$108,400
Yr 16$3,600$916+$2,684$515,400−$43,975
Yr 17 (mo 209)$3,600$916+$2,684$561,034+$1,659
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