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New Construction Rental Property Sold by the Alabama Property Team for $266k

New Construction SFR Rental Property sold by the Alabama Property Team for $266K.

Property Type:

New Construction
Purchase Price: $266,000
Gross Rent: $1,795
Cap Rate (year 1): 6.9
Cash Flow (year 1): $4,774
3
2
1,613 SQ. FT
Loan type? 75% LTV 30-year @ 5.500% with 0 Pts
?Purchase Price:$266,000
Down payment:$66,500
?Purchase cost:$7,980
?Total cash invested:$74,480
?Estimated cash flow (year 1)
?Gross rent:$1,795
?Principal & interest:$1,133
Taxes:$206
HOA:n/a
Insurance:$58
Property management:$0
Total monthly cost:$1,397
?Monthly cashflow (year 1):$398
?annual cashflow:$4,774

Buy & Hold Projections

?Appreciation:
3%
?Income Increase:
2%
?Expense Increase:
2%
?Selling Costs:
6%
Cash Flow & EquityYear 1Year 5Year 10Year 30
?Cash flow:$4,774$4,191$6,040$15,582
?Total equity:$77,167$123,908$192,813$645,652
Investment returnsYear 1Year 5Year 10Year 30
?Cap Rate (Purchase Price):7%7%7%11%
?Cash on Cash Return:6%6%8%21%
?Return on Equity:6%3%3%2%
?Internal Rate of Return (IRR):-12%12%13%11%
?Return on Investment:-12%68%192%1,065%

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