|
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| THE
RENTAL ALTERNATIVE |
|
|
|
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|
|
|
| The
true cost (or what should concern you) |
|
|
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|
|
|
| |
|
|
$
100,000.00 |
Your |
$
100,000.00 |
Your |
$
100,000.00 |
Your |
$
100,000.00 |
|
| |
|
|
building |
building |
building |
building |
building |
building |
building |
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| |
|
|
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| |
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|
Year
1 |
|
Year
2 |
|
Year
3 |
|
Year
4 |
|
| Expenses |
|
|
|
|
|
|
|
|
|
|
| Principle,
Interest, Tax and Insurance |
$
10,200.00 |
|
$
10,400.00 |
|
$
10,600.00 |
|
$
10,900.00 |
|
| (Insurance
increases added) |
|
|
|
|
|
|
|
|
| Yearly
maintenance |
|
$
1,500.00 |
|
$
1,600.00 |
|
$
1,700.00 |
|
$
1,800.00 |
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| |
|
|
|
|
|
|
|
|
|
|
| Vacancy
allowance at 7% |
$
714.00 |
|
$
728.00 |
|
$
742.00 |
|
$
763.00 |
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| |
|
|
|
|
|
|
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| Refurbishment
on vacancy |
$
1,850.00 |
|
$
1,850.00 |
|
$
1,850.00 |
|
$
1,850.00 |
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| |
|
|
|
|
|
|
|
|
|
|
| Collection
agents fee |
|
$
1,020.00 |
|
$
1,040.00 |
|
$
1,060.00 |
|
$
1,090.00 |
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| |
|
|
|
|
|
|
|
|
|
|
| Total
Expenses |
|
$
15,284.00 |
|
$
15,618.00 |
|
$
15,952.00 |
|
$
16,403.00 |
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| |
|
|
|
|
|
|
|
|
|
|
| Gross
Income |
|
|
|
|
|
|
|
|
|
| Rental
for best in class building |
$
12,000.00 |
|
$
12,500.00 |
|
$
12,850.00 |
|
$
13,100.00 |
|
| (Yearly
rental Increase) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Annual
out of pocket cash |
$
(3,284.00) |
|
$
(3,118.00) |
|
$
(3,102.00) |
|
$
(3,303.00) |
|
| |
|
|
|
|
|
|
|
|
|
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| Other
income |
|
|
|
|
|
|
|
|
|
| Passive
- loan paydown, |
|
$
1,200.00 |
|
$
1,250.00 |
|
$
1,300.00 |
|
$
1,350.00 |
|
| Inclu.
interest and tax refund |
|
|
|
|
|
|
|
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| |
|
|
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|
|
|
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| Estimated
appreciation |
|
$
3,000.00 |
|
$
3,090.00 |
|
$
3,092.70 |
|
$
3,092.78 |
|
| (San
Antonio 3% to 4% ) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Income |
|
|
$
12,916.00 |
|
$
13,722.00 |
|
$
14,140.70 |
|
$
14,239.78 |
|
| |
|
|
|
|
|
|
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|
|
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| Net
Profit/Loss |
|
$
(2,368.00) |
|
$
(1,896.00) |
|
$
(1,811.30) |
|
$
(2,163.22) |
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