|
 |
|
|
|
Cash Flow Comparison
Here is Cash Flow comparison of a typical 3 Bedroom/2 Bath 1,250 SqFt Single Family investment property with a FMV = $160,000:
| Purchase Price: |
$150,000 |
| 20% Down Payment: |
$30,000 |
| Loan Amount: |
$120,000 |
| |
| Lease Option Purchase Price: |
$169,900 (Tenant-Buyer) |
| Lease Option Purchase Spread: |
$19,900 |
| |
Lease Option vs. |
Traditional Landlord |
| Income |
|
|
| Rents |
$1,450 |
$1,250 |
| NON-Refundable Option Fee: |
$5,000 (One-Time) |
|
| Totals |
$6,450 |
$1,250 |
| |
| Expenses |
|
|
| Mortgage |
$798 ($120K @ 7% in 30 yrs) |
$798 |
| Property Taxes |
$145 |
$145 |
| Insurance |
$40 |
$40 |
| Water, Sewer and Garbage |
$0 |
$120 |
| Property Management |
(Optional) |
$100 |
| Maintenace Reserves |
$0 |
$120 |
| Vacancy |
$72 (5%) |
$72; |
| Monthly Totals: |
$1,055 |
$1,395 |
| |
| Monthly Cash Flow |
$395 |
-$145* |
| *Excluding any fix up cost to get unit rent ready each time a tenant moves out. |
| |
12 Month Lease Option |
12 Month Tradiitonal Landlord |
| Total Cash Flow: |
$4,740 |
-1,740 |
| Option Fee/Security deposit |
$5,000 |
|
| Lease Option Purchase Spread: |
$19,900 |
|
| Annual Totals: |
$29,640 |
-$1`,740 |
Lease Option Cash on Cash Return = 98.8%
Can your current investments give you a 98.8% return Secured by Safe Real Estate?
|
|
|
| |
