Investment Duplex Cost, Payment, & Profit Scenarios
Option #1
Construction-Perm Duplex Loan 5/6 ARM Interest Only After Completion:
Property Value Prior to Construction = $321,000.00
Estimated Value After Construction = Minimum $335,000.00 *Assuming 5% Appreciation
Loan Amount: $272,850.00
Total Out of Pocket Up Cost = $5,000.00 (Deposit to Builder and Closing Cost)
Payment Based On 7.0% Interest Only (*Includes, Tax on Unimproved Land, & Mortgage Insurance) = $1,776.69
*Profit / Equity Before Completion = $43,700.00
*Profit/ Equity After Completion = $57,700.00 + $1,476.00(projected 12mon rental income of $1,900.00 per month ) - $1,779.69 = $123.31 per month. *cash flow
Total = $59,176.00
Option #2
After Completion Refinance Into An Option ARM:
Estimated Value After Construction = Minimum $335,000 *Assuming 5% Appreciation
Loan Amount: $279,100.00
Closing Costs & Prepaid Items =$5,198.00
Payment Based On 2.25% Option Payment (*Includes, Tax on Unimproved Land, & Mortgage Insurance) = $1,208.08
Profit / Equity = $55,900.00 + $8,303 (Projected 12mon. Rental Income Based Off of $1,900.00 per month - $1,208.08 = $691.92 per month *cash flow
Total = $64,203.00
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