| Rental Property Analysis - Commercial Project (Example) |
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| Purchase Price: |
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$1,250,000 |
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| Down Payment: |
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$600,000 |
48.00% |
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| Loan Amount |
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$650,000 |
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| Interest Rate on Loan: |
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6.50% |
Annual |
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| Term of Loan: |
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360 |
mos |
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| No. of Units |
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1 |
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| Sq Ft of Occupied Space |
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4000 |
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| Value of Occupied Space |
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$600,000 |
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| Sq Ft of Land |
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20000 |
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| Value of Land |
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$1,000,000 |
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| Total Value of Land and Bldg |
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$1,600,000 |
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| Improvement Ratio: |
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60% |
Building to Prop Ratio |
| No. Yrs. of Depreciation: |
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39.5 |
27 yrs resid, 39.5 Comm. |
| Rent per Unit per month |
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$8,000 |
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| Gross Potential Income - Calculated |
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$96,000 |
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| Gross Potential Income - Stated |
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$96,000 |
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| Gross Operating Income - Stated |
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$90,000 |
annual |
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| Vacancy/Collection losses: |
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6.25% |
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--------- |
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| Property taxes : |
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$17,600 |
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| Insurance: |
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$2,500 |
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| Electricity: |
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$0 |
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| Gas: |
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$0 |
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| Oil: |
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$0 |
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| Water: |
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$2,400 |
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| Trash: |
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$0 |
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| Management: |
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$5,400 |
6.00% |
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| Repairs/Maintenance: |
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$9,000 |
10.00% |
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| Advertising: |
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$0 |
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| Telephone: |
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$0 |
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| Other: |
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$1,494 |
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| Landscaping |
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$960 |
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Interest / mo |
| P&I - Principal & Interest Payment - Monthly |
$4,086.31 |
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0.54% |
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| Cap Impr - Capital Improvements: |
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$380,000.00 |
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| Annual Increase of Income: |
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3.00% |
% |
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| Annual Increase of Expenses: |
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4.00% |
% |
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| Annual Appreciation Rate: |
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3.00% |
% |
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| Investor's Tax Bracket: |
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30.00% |
% |
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| Capital Gain Tax Rate: |
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35.00% |
% |
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| CGT Rate on Recaptured Depreciation |
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25.00% |
% |
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| Approx. Buying Costs: |
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3.00% |
% |
of total |
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| Approx. Sales Costs: |
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5.30% |
% |
of total |
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| Calculations |
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| GPI - Gross Potential Income (Fully Occupied) |
$96,000 |
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| GOI - Gross Operating Income |
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$90,000 |
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| GRM - Gross Rental Multiplier (Market Value/GOI) |
17.78 |
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| Expenses - Total Operating Expenses |
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$39,354 |
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| NOI - Net Operating Income (GOI - Annual Expenses) |
$50,646 |
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| Cap Rate - Capitalization Rate (NOI/Market Value) |
3.17% |
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| CFBT -Cash Flow Before Taxes (NOI - P&I*12 - Cap Impr) |
-$378,390 |
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| Net Rental Yield (GOI - Expenses)/Purchase Price |
4.05% |
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| Cash on Cash Investor Yield (GOI - Expenses)/Down Payment |
8.44% |
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| Rental Analysis Example |
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