Texas Cash Cow Investments Analysis Form ( 1ST YEAR )

Property Address 807 Edd Road Asking/Offer Price $115,000

Mortgage 30 year fixed rate, 25% down Number of Units 1
Current 1st Mort $86,250 Interest Rate 5.375% Payment $0 Appraised Value $119,500
Current 2nd Mort $0 Interest Rate 0.000% Payment $0
T otal Equity $28,750 Total $0
$115,000
Unit Mix Annu al Op erating Expenses
Number of Units FT/2 Beds Baths Cur Rent Mkt Rent Real Estate Taxes $2,022
1 1621 4 2 $1,250 $1,250 Insurance $925
$0 Water and Sewer $0
$0 T rash Removal $0
$0 Electric $0
$0 Gas $0
T otal Gross In come Oil $0
Gross Rental Income ( Total Monthly X 12 ) $15,000 Legal (eviction part of management fee) $0
Subtract Vacancy (10%)5% - $750 Management Fees 0% $0
Net Yearly Rental Income = $14,250 Repairs and Maintenances 10% 0% $0
Labor - $50.00 a unit $0
Other Income + $0 Snow Removal (no NEED)
T otal Gross In come = $14,250 Maint. (includes 350 for appliance Contract)
T otal Annual Operating Expenses - $2,947 Other = Finders Fee???????
Net Operating Income = $11,303 T otal Annual Operating Expense = $2,947

Sales Price $115,000 Down Payment 25% Down Payment $28,750

1st Lien Loan T o Value 75% 2nd Lien LTV 0% Total Loan To Value 75%

Closing Cost $4,475 Closing Cost $0 Total Acquisition Cost $33,225

1st Mortgage
Rate 5.375% Balance $86,250 Terms 30 Payment $483
2nd Mortgage
Rate 0.000% Balance $0 Terms 15 Payment $0
x 12
Total Monthly Debt Service $483

Total Annual Debt Service $5,796

Summary

Total Annual In come $14,250 Amortization (loan pay down) 1st $1,189
+ +
Total Annual Operating Expense $2,947 Amortization (loan pay down) 2nd $0
- +
Total Annual Debt Service $5,796 Net Income = $1,189
Cash Flow = $5,507

Cap Rate 9.83% Cash on Cash Return 16.58%

Net Operating Income/Asking, Offer Price Cash Fl ow/Acquisition Cost

Return on Investment 20.15% Gro ss Rent Multiplier 7.67%

Equity in property after purchase $33,250

(Down payment and appraised Value)

5 Year Appreciation Levels and Principal reduction with nominal 3% a year appreciation

1st year 2nd year 3rd year 4th year 5th year
$34,439 $38,958 $44,186 $ 48,811.55 $ 54,225.86
 Texas Cash Cow Investments Analysis Form ( 2nd - 5th Year )

Property Address 807 Edd Road Asking/Offer Price $115,000

Mortgage 30 year fixed rate, 25% down Number of Units 1
Current 1st Mort $86,250 Interest Rate 5.375% Payment $0 Appraised Value $119,500
Current 2nd Mort $0 Interest Rate 0.000% Payment $0
Total Equity $28,750 Total $0
$115,000
Unit Mix Annual Operating Expenses
Number of Units FT/2 Beds Baths Cur Rent Mkt Rent Real Estate Taxes $2,022
1 1621 4 2 $1,250 $1,250 Insurance $925
$0 Water and Sewer $0
$0 Trash Removal $0
$0 Electric $0
$0 Gas $0
Total Gross Income Oil $0
Gross Rental Income ( Total Monthly X 12 ) $15,000 Legal (eviction part of management fee) $0
Subtract Vacancy (10%)5% - $750 Management Fees 8% $1,200
Net Yearly Rental Income = $14,250 Repairs and Maintenances 10% 0% $0
Labor - $50.00 a unit $0
Other Income + $0 Snow Removal (no NEED)
Total Gross Income = $14,250 Maint. (includes 350 for applianc e Contract) $500
Total Annual Operating Expenses - $4,647 Other = Finders Fee???????
Net Operating Income = $9,603 Total Annual Operating Expense = $4,647

Sales Price $115,000 Down Payment 25% Down Payment $28,750

1st Lien Loan To Value 75% 2nd Lien LTV 0% Total Loan To Value 75%

Closing Cost Closing Cost $0 Total Acquisition Cost $28,750

1st Mortgage
Rate 5.375% Balance $86,250 Terms 30 Payment $483
2nd Mortgage
Rate 0.000% Balance $0 Terms 15 Payment $0
x 12
Total Monthly Debt Service $483

Total Annual Debt Service $5,796

Summary

Total Annual Income $14,250 Amortization (loan pay down) 1st $1,189
+ +
Total Annual Operating Expense $4,647 Amortization (loan pay down) 2nd $0
- +
Total Annual Debt Service $5,796 Net Income = $1,189
Cash Flow = $3,807

Cap Rate 8.35% Cash on Cash Return 13.24%

Net Operati ng Income/Aski ng, Offer Price Cash Fl ow/Acquisition Cost

Return on Investment 17.38% Gross Rent Multiplier 7.67%

Equity in property after purchase $33,250

(Down payment and appraised Value)

5 Year Appreciation Levels and Principal reduction with nominal 3% a year appreciation

1st year 2nd year 3rd year 4th year 5th year
$34,439 $38,958 $44,186 $ 48,811.55 $ 54,225.86