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
