Investment Property Analysis Sheet

Provided by Joe Massey of Castle & Cooke Mortgage

Direct: 303-809-7769 - Email: [email protected] - Website: http://jmassey.castlecookemortgage.com

Instructions: 1 - Work your way down this sheet inputting the appropriate information in to each highlighted tab.
2 - Be sure to input the correct number of units for your subject property (SFR through Four-Plex)
Latest Revision Date: 3 - Please note that certain lines have comments to provide additional help for you
December 1st, 2017 4 - Once the highlighted cells are completed, you can view your results on the Cash-Flow Tab and What-If Tab

Property Address 411 Maddock

Number of Units 2

WARNING - Borrower needs more down payment!

Down Payment Percentage 20%
Minimum Down Payment on Multi-Unit is 25%.
Purchase Price $ 329,000
Acquisition Costs $ 2,500
Loan Costs $ 4,027
Down Payment $ 65,800
Mortgage Balance $ 263,200
Initial Repair Costs $ -
Total Initial Investment $ 72,327

Mortgage Interest Rate 4.375%

Mortgage Term (years) 30
Extra Principal per Month 0

MONTHLY Rental Income Per Unit

Unit #1
Unit #2 $ 850
Unit #3
Unit #4
Total Rental Income $ 850

Vacancy Factor 7%

Annual Rent Increase 2%

Annual Appreciation Rate 6.0%

ANNUAL Operating Expenses Comments/Footnotes On Expenses

Real Estate Taxes 2640
Property Insurance 1476
Property Management $ - Standard 10% of gross rents for Property Management
Repairs and Maintenance $ 1,500 Generally a minimum of 5% for repairs/maintenance
Utilities (If paid by owner)
- Water and Sewer
- Trash
- Electric
Landscaping
HOA Dues
Other
Other
Other
Other
Other

What If Scenarios
What if you got a discount on the purchase price… What percentage? 5%
What if you lowered expenses…. What percentage? 5%
What if you increased rents… What percentage? 5%

This sheet is for informational purposes only. This is not a commitment, approval or guarantee to lend. The figures included in this worksheet are entirely
dependent on the information that you input. These figures and calculations are considered accurate, but not guaranteed. Joe Massey and Castle & Cooke
Mortgage do not represent, warrant or guarantee these numbers. All information is for preliminary analysis and calculations only. Please contact your tax
advisor, CPA, financial planner, attorney, insurance agent, real estate agent or other properly licensed professional for additional information as needed.
Cash Flow Analysis for 411 Maddock

Number of Units 2

Cash Investment Breakdown

Purchase Price $ 329,000
Mortgage $ 263,200
Down Payment $ 65,800
Estimated Finance and Acquisition Costs $ 6,527
Repair Costs $ -
Total Cash Investment $ 72,327

Annual Cash Flow Statement

Annual Income
Annual Rental Income $ 10,200 $850 per month
- Vacancy 7% $ (714)
Expected Annual Rental Income $ 9,486

Annual Expenses Comments/Footnotes

Real Estate Taxes $ 2,640 -
Property Insurance $ 1,476 -
Property Management $ - Standard 10% of gross rents for Property Management
Repairs and Maintenance $ 1,500 Generally a minimum of 5% for repairs/maintenance
Utilities (If paid by owner) $ - -
Water and Sewer $ - -
Trash $ - -
Electric $ - -
Landscaping $ - -
HOA Dues $ - -
Other $ - -
Other $ - -
Other $ - -
Other $ - -
Other $ - -
Total Annual Expenses $ 5,616

Net Operating Income $ 3,870

Less: Annual Mortgage Payments $ (15,769) $263,200 @ 4.375% = $1,314.12 per month

Annual Cash Flow Before Taxes $ (11,899)

Cash-on-Cash Rate of Return -16% -$11,899 ÷ $72,327 = -16%

CAP Rate 1.2% $3,870 ÷ $329,000 = 1.2%

GRM - Gross Rent Multiplier 387.1 $329,000 ÷ $850 = 387.1

5 Year After-Tax Return 7.5% 5 Year After Tax Cash-flows + 5 Year Exit - Capital Gains

This sheet is for informational purposes only. This is not a commitment, approval or guarantee to lend. The figures included in this worksheet are entirely dependent on
the information that you input. These figures and calculations are considered accurate, but not guaranteed. Joe Massey and Castle & Cooke Mortgage do not represent,
warrant or guarantee these numbers. All information is for preliminary analysis and calculations only. Please contact your tax advisor, CPA, financial planner, attorney,
insurance agent, real estate agent or other properly licensed professional for additional information as needed.
Cash Flow Analysis for 411 Maddock Cash Investment Breakdown
Purchase Price $ 329,000
Number of Units 2 Mortgage $ 263,200
Down Payment $ 65,800
Estimated Finance and Acquisition Costs $ 6,527
Repair Costs $ -
Total Cash Investment $ 72,327
Annual Cash Flow Statement

Annual Income Year 1 Year 2 Year 3 Year 4 Year 5

Annual Rental Income $ 10,200 $ 10,404 $ 10,612 $ 10,824 $ 11,041
- Vacancy 7% $ (714) $ (728) $ (743) $ (758) $ (773)
Expected Annual Rental Income $ 9,486 $ 9,676 $ 9,869 $ 10,067 $ 10,268

Annual Expenses
Real Estate Taxes $ 2,640 $ 2,798 $ 2,966 $ 3,144 $ 3,333
Property Insurance $ 1,476 $ 1,520 $ 1,566 $ 1,613 $ 1,661
Property Management $ - $ - $ - $ - $ -
Repairs and Maintenance $ 1,500 $ 1,545 $ 1,591 $ 1,639 $ 1,688
Utilities (If paid by owner) $ - $ - $ - $ - $ -
Water and Sewer $ - $ - $ - $ - $ -
Trash $ - $ - $ - $ - $ -
Electric $ - $ - $ - $ - $ -
Landscaping $ - $ - $ - $ - $ -
HOA Dues $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Total Annual Expenses $ 5,616 $ 5,864 $ 6,124 $ 6,396 $ 6,682

Net Operating Income $ 3,870 $ 3,812 $ 3,746 $ 3,670 $ 3,585

Less: Annual Mortgage Payments $ (15,769) $ (15,769) $ (15,769) $ (15,769) $ (15,769)

Annual Cash Flow Before Taxes $ (11,899) $ (11,957) $ (12,024) $ (12,099) $ (12,184)

Property Value at End of Year $ 348,740 $ 369,664 $ 391,844 $ 415,355 $ 440,276

Mortgage Balance at End of Year $ 258,859 $ 254,325 $ 249,588 $ 244,639 $ 239,470
Total Equity $ 89,881 $ 115,340 $ 142,257 $ 170,716 $ 200,806
Equity + Cash Flow $ 77,981 $ 103,382 $ 130,233 $ 158,617 $ 188,622
Annual Rate of Return 7.8% 18.7% 20.6% 22.6% 24.8%

Cumulative Cash Flow $ (11,899) $ (23,857) $ (35,881) $ (47,980) $ (60,164)

Cash on Cash Rate of Return -16.5% -33.0% -49.6% -66.3% -83.2%

Cumulative Cash and Equity Gain $ 5,654 $ 19,156 $ 34,049 $ 50,409 $ 68,316
Rate of Return on Initial Cash Investment 7.8% 26.5% 47.1% 69.7% 94.5%

This sheet is for informational purposes only. This is not a commitment, approval or guarantee to lend. The figures included in this worksheet are entirely dependent on the information that you input.
These figures and calculations are considered accurate, but not guaranteed. Joe Massey and Castle & Cooke Mortgage do not represent, warrant or guarantee these numbers. All information is for
preliminary analysis and calculations only. Please contact your tax advisor, CPA, financial planner, attorney, insurance agent, real estate agent or other properly licensed professional for additional
information as needed.
Cash Flow Analysis for 411 Maddock Cash Investment Breakdown
Purchase Price $ 329,000
Number of Units 2 Mortgage $ 263,200
Down Payment $ 65,800
Estimated Finance and Acquisition Costs $ 6,527
Repair Costs $ -
Total Cash Investment $ 72,327
Annual Cash Flow Statement

Annual Income Year 1 Year 2 Year 3 Year 4 Year 5

Annual Rental Income $ 10,200 $ 10,404 $ 10,612 $ 10,824 $ 11,041
- Vacancy 7% $ (714) $ (728) $ (743) $ (758) $ (773)
Expected Annual Rental Income $ 9,486 $ 9,676 $ 9,869 $ 10,067 $ 10,268

Annual Expenses
Real Estate Taxes $ 2,640 $ 2,798 $ 2,966 $ 3,144 $ 3,333
Property Insurance $ 1,476 $ 1,520 $ 1,566 $ 1,613 $ 1,661
Property Management $ - $ - $ - $ - $ -
Repairs and Maintenance $ 1,500 $ 1,545 $ 1,591 $ 1,639 $ 1,688
Utilities (If paid by owner) $ - $ - $ - $ - $ -
Water and Sewer $ - $ - $ - $ - $ -
Trash $ - $ - $ - $ - $ -
Electric $ - $ - $ - $ - $ -
Landscaping $ - $ - $ - $ - $ -
HOA Dues $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Total Annual Expenses $ 5,616 $ 5,864 $ 6,124 $ 6,396 $ 6,682

Net Operating Income $ 3,870 $ 3,812 $ 3,746 $ 3,670 $ 3,585

Less: Annual Mortgage Payments $ (15,769) $ (15,769) $ (15,769) $ (15,769) $ (15,769)

Annual Cash Flow Before Taxes $ (11,899) $ (11,957) $ (12,024) $ (12,099) $ (12,184)

Property Value at End of Year $ 348,740 $ 369,664 $ 391,844 $ 415,355 $ 440,276

Mortgage Balance at End of Year $ 258,859 $ 254,325 $ 249,588 $ 244,639 $ 239,470
Total Equity $ 89,881 $ 115,340 $ 142,257 $ 170,716 $ 200,806
Equity + Cash Flow $ 77,981 $ 103,382 $ 130,233 $ 158,617 $ 188,622
Annual Rate of Return 7.8% 18.7% 20.6% 22.6% 24.8%

Cumulative Cash Flow $ (11,899) $ (23,857) $ (35,881) $ (47,980) $ (60,164)

Cash on Cash Rate of Return -16.5% -33.0% -49.6% -66.3% -83.2%

Cumulative Cash and Equity Gain $ 5,654 $ 19,156 $ 34,049 $ 50,409 $ 68,316
Rate of Return on Initial Cash Investment 7.8% 26.5% 47.1% 69.7% 94.5%

This sheet is for informational purposes only. This is not a commitment, approval or guarantee to lend. The figures included in this worksheet are entirely dependent on the information that you input.
These figures and calculations are considered accurate, but not guaranteed. Joe Massey and Castle & Cooke Mortgage do not represent, warrant or guarantee these numbers. All information is for
preliminary analysis and calculations only. Please contact your tax advisor, CPA, financial planner, attorney, insurance agent, real estate agent or other properly licensed professional for additional
information as needed.
Cash Flow Analysis for 411 Maddock Cash Investment Breakdown
Purchase Price $ 329,000
Number of Units 2 Mortgage $ 263,200
Down Payment $ 65,800
Estimated Finance and Acquisition Costs $ 6,527
Repair Costs $ -
Total Cash Investment $ 72,327
Annual Cash Flow Statement

Annual Income Year 1 Year 2 Year 3 Year 4 Year 5

Annual Rental Income $ 10,200 $ 10,404 $ 10,612 $ 10,824 $ 11,041
- Vacancy 7% $ (714) $ (728) $ (743) $ (758) $ (773)
Expected Annual Rental Income $ 9,486 $ 9,676 $ 9,869 $ 10,067 $ 10,268

Annual Expenses
Real Estate Taxes $ 2,640 $ 2,798 $ 2,966 $ 3,144 $ 3,333
Property Insurance $ 1,476 $ 1,520 $ 1,566 $ 1,613 $ 1,661
Property Management $ - $ - $ - $ - $ -
Repairs and Maintenance $ 1,500 $ 1,545 $ 1,591 $ 1,639 $ 1,688
Utilities (If paid by owner) $ - $ - $ - $ - $ -
Water and Sewer $ - $ - $ - $ - $ -
Trash $ - $ - $ - $ - $ -
Electric $ - $ - $ - $ - $ -
Landscaping $ - $ - $ - $ - $ -
HOA Dues $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Total Annual Expenses $ 5,616 $ 5,864 $ 6,124 $ 6,396 $ 6,682

Net Operating Income $ 3,870 $ 3,812 $ 3,746 $ 3,670 $ 3,585

Less: Annual Mortgage Payments $ (15,769) $ (15,769) $ (15,769) $ (15,769) $ (15,769)

Annual Cash Flow Before Taxes $ (11,899) $ (11,957) $ (12,024) $ (12,099) $ (12,184)

Property Value at End of Year $ 348,740 $ 369,664 $ 391,844 $ 415,355 $ 440,276

Mortgage Balance at End of Year $ 270,759 $ 278,181 $ 285,468 $ 292,619 $ 299,634
Total Equity $ 77,981 $ 91,483 $ 106,376 $ 122,736 $ 140,643
Equity + Cash Flow $ 77,981 $ 91,483 $ 106,376 $ 122,736 $ 140,643
Annual Rate of Return 7.8% 26.5% 47.1% 69.7% 94.5%

Cumulative Cash Flow $ - $ - $ - $ - $ -

Cash on Cash Rate of Return 0.0% 0.0% 0.0% 0.0% 0.0%

Cumulative Cash and Equity Gain $ 5,654 $ 19,156 $ 34,049 $ 50,409 $ 68,316
Rate of Return on Initial Cash Investment 7.8% 26.5% 47.1% 69.7% 94.5%

This sheet is for informational purposes only. This is not a commitment, approval or guarantee to lend. The figures included in this worksheet are entirely dependent on the information that you input.
These figures and calculations are considered accurate, but not guaranteed. Joe Massey and Castle & Cooke Mortgage do not represent, warrant or guarantee these numbers. All information is for
preliminary analysis and calculations only. Please contact your tax advisor, CPA, financial planner, attorney, insurance agent, real estate agent or other properly licensed professional for additional
information as needed.
"What-If" Analysis for 411 Maddock
What If… What If… What If… What If…

Actual from Cash …we purchased the …we increased …we decreased …we purchased at a discount,
Description Flow Analysis property at a discount rents. expenses increased rents and
decreased expenses

Cash Investment Breakdown

Purchase Price $ 329,000 $ 312,550.00 $ 329,000 $ 329,000 $ 312,550
Mortgage $ 263,200 $ 250,040.00 $ 263,200 $ 263,200 $ 250,040
Down Payment $ 65,800 $ 62,510.00 $ 65,800 $ 65,800 $ 62,510
Estimated Prepaid Costs $ 2,500 $ 2,500.00 $ 2,500 $ 2,500 $ 2,500
Estimated Fincnace Costs $ 4,027 $ 4,100.40 $ 4,027 $ 4,027 $ 4,100
Repair Costs $ - $ - $ - $ - $ -
Total Cash Investment $ 72,327 $ 69,110 $ 72,327 $ 72,327 $ 69,110

Annual Cash Flow Statement

Annual Income
Annual Rental Income $ 10,200 $ 10,200 $ 10,710.00 $ 10,200 $ 10,710.00
- Vacancy $ (714) $ (714) $ (750) $ (714) $ (750)
Expected Annual Rental Income $ 9,486 $ 9,486 $ 9,960 $ 9,486 $ 9,960

Annual Expenses
Real Estate Taxes $ 2,640 $ 2,640 $ 2,640 $ 2,640 $ 2,640
Property Insurance $ 1,476 $ 1,476 $ 1,476 $ 1,402 $ 1,402
Property Management $ - $ - $ - $ - $ -
Repairs and Maintenance $ 1,500 $ 1,500 $ 1,500 $ 1,425 $ 1,425
Utilities (If paid by owner) $ - $ - $ - $ - $ -
Water and Sewer $ - $ - $ - $ - $ -
Trash $ - $ - $ - $ - $ -
Electric $ - $ - $ - $ - $ -
Landscaping $ - $ - $ - $ - $ -
HOA Dues $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Total Annual Expenses $ 5,616 $ 5,616 $ 5,616.00 $ 5,467.20 $ 5,467.20

Net Operating Income $ 3,870 $ 3,870 $ 4,344 $ 4,019 $ 4,493

Less: Annual Mortgage Payments $ (15,769) $ (14,981) $ (15,769) $ (15,769) $ (14,981)

Annual Cash Flow Before Taxes $ (11,899) $ (11,111) $ (11,425) $ (11,751) $ (10,488)

Cash-on-Cash Rate of Return -16% -16% -16% -16% -15%

CAP Rate 1.2% 1.2% 1.3% 1.2% 1.4%

This sheet is for informational purposes only. This is not a commitment, approval or guarantee to lend. The figures included in this worksheet are entirely dependent on the information that you input. These figures and calculations are considered accurate, but not guaranteed. Joe Massey and
Castle & Cooke Mortgage do not represent, warrant or guarantee these numbers. All information is for preliminary analysis and calculations only. Please contact your tax advisor, CPA, financial planner, attorney, insurance agent, real estate agent or other properly licensed professional for
additional information as needed.