Condos/Co-ops
768 sqft. Interior
0 sqft. Exterior
1 Bathroom
1 Door
Property Location
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Disclaimer:
As experts in property purchasing, we offer consultations and detailed analyses of rental income properties. However, the images, financial projections, and examples presented are for illustrative purposes only and do not guarantee returns or the expected profitability. The configurations and features of the properties may vary. We strongly recommend that you consider our guidance, but also conduct your own research and due diligence before making any investment decisions. Trust our expertise, but remember that all investments carry inherent risks. You are solely responsible for your investment decisions. Your trust is our priority.
Comprehensive Financial Details
At Great Front Door, transparency is key. We want you to have a clear understanding of all costs associated with your property investment. Below, we break down the pricing for Rental Income Property to help you make an informed decision
FINANCIAL DETAILS
- Description Amount
- Listing Price: $ XX,XXX
- Cash Due at Closing
- Down Payment: $ 72,000
- Agent Fees: $ 10,800
- Mortgage Fees: $ 2,880
- 1st Year's Insurance: $ 3,600
- 1st Year's Taxes: $ 3,600
- Total Closing Costs: $ 92,880
- Renovation Cost: $ 10,000
- Mortgage While Renovating: $ 1,978
- Property Management Fees: $ 4,260
- Total Initial Investment: $ 109,118
- Investor Considerations
- After Repair Value (ARV): $ 770,000
- Equity after Renovation (EaR): $ 300,882
- Fix and Flip Max Price: $ 529,000
- Max. Cash Available from EaR eligible for Cash Out Refinance: $ 240,705
- Remaining Total Initial Investment after Cash Out Refinance: $ -131,587
RENTAL COMPARISON AND CASH FLOW
- Description Amount
- Monthly Income
- Avg. Monthly Rent ( 1 x 1-bed, 1-bath, 816-sqft rental unit): $ 4,260
- TOTAL Avg. Monthly Rent: $ 4,260
- Monthly Expenses
- Monthly Mortgage Payment: $ 1,978
- Monthly HOA (if any): $ 531
- Monthly Insurance: $ 300
- Monthly Tax: $ 300
- Monthly Maintenance: $ 300
- Monthly Property Management Fees: $ 426
- Total Monthly Payment: $ 3,835
- Monthly Cash Flow: $ 425
- Annual Cash Flow: $ 5,096
- Return of Investment In: 1 month
HOW WOULD I RETURN MY INITIAL INVESTMENT?
- Initial Investment: To acquire this property with listing price of $XX,XXX.XX and maximize the rental potential of this property, you will need an initial investment of approximately $109,118. This includes closing costs totaling $92,880 which is a down payment of $72,000, agent fees of $10,800 and mortgage fees of $2,880. Initial investment also includes your renovation budget of $10,000 and mortgage payments during the renovation over 1 months totaling $1,978.
- After Repair Value (ARV): The property has an After Repair Value (ARV) of $770,000. The maximum price for a Fix and Flip is estimated at $529,000. After completing all renovation costs, the Equity After Renovation stands at $300,882. Since there is positive equity after the renovation, you can perform a Cash Out Refinance with your mortgage assuming the ARV and get 80% of this equity back totaling $240,705 in cash after the renovation. This shortens the original Return of Investment duration because the entire Initial Investment can be cashed out of the property after the renovations and Cash Out Refinance are complete.
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Rental Cash Flow:
This 1-bed, 1-bath, 816-sqft unit property can be Rented at $4,260 per month, totaling to $51,120 annual Rental Income.
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Rental Unit/s: 1-bed with 1-bath Unit
Unit Name Rent Estimate Square Feet $ 4,675 839 $ 4,510 973 $ 3,595 637 Unit Details Unit Name: https://www.zillow.com/apartments/seattle-wa/the-modern/C4jGzC/#unit-2054110496
Rent Estimate: $ 4,675
Square Feet: 839Unit Name: https://www.zillow.com/apartments/seattle-wa/the-confidential/Cgvj9B/#unit-440352850
Rent Estimate: $ 4,510
Square Feet: 973Unit Name: https://www.zillow.com/apartments/seattle-wa/arrive-seattle/9P5xny/#unit-443815802
Rent Estimate: $ 3,595
Square Feet: 637 - Return of Investment: Since there is positive Equity after the Renovation, you can perform a Cash Out Refinance with your mortgage assuming the After Renovation Value of $770,000 and get 80% of the $300,882 in Equity back in cash after the renovation totaling $240,705. This shortens the original Return of Investment duration of 21 years and 1 month to 1 month because the entire Initial Investment of $109,118 which included Closing Costs, Renovation Budget and getting tenants in, can be cashed out of the property after the renovations and Cash Out Refinance are complete. With Total Monthly Expenses amounting to $3,835, including mortgage payments, taxes, insurance, and maintenance, you can anticipate a Monthly Cash flow of approximately $425, resulting in an Annual Cash Flow around $5,096 going forward.
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