13 BED HOME FOR SPECIAL CARE - GRAVENHURST - LIST $647,000 - SOLD

CASH FLOW AND RETURN ON INVESTMENT

Pressick Residence

(Based on 2011 income and operating costs)

 

 

A. FINANCING

Purchase Price                                                  699,000

Down payment 35%                                         245,000

1st Mortgage                                                   $454,000

 

B. CASH FLOW

 

GROSS INCOME                                           $199,504

 

OPERATING EXPENSES

Wages                                      50,804

Food and Supplies                    15,413

Property Taxes                           3,066

Office supplies                           673

Cable/Internet/phone                1,479

Professional fees                       5,702

Alarm & Maintenance               9,608

Electricity/heat                        7,100

Insurance                                 2,869

 

Total Operating                                                          96,714

 

Net Operating Income                                   $102,790

 

1st Mortgage* P&I ($2,627 p.m.)                     31,524

 

Annual Cash Flow                                          $71,266  or Monthly $5,938

 

 

C. 5 YEAR RETURN ON INVESTMENT (R.O.I)

 

Cash Flow        71,266 x 5 = 356,330

Principal paid                            85,870

Total 5 year Income               $442,200                                            

 

442,200(income)/245,000(cash invested) = 180.5% or 36% per year

 

* 3.5%  5year closed with 20 year amortization