Seville

Undisclosed Tract- Contact Shevy Akason for details: 949-769-1599

Purchase Price= $130,000
Rent= $1600/month

Cap rate=                         8%               
Cash on cash return=        23.6%  
Initial investment=            $26,000


Shevy Akason and Associates Principles:

1) Cap rate of 8%+ using todays numbers, and not less than 5.5% using worst case scenarios
2) We use 5% vacancy as todays baseline, and 10% vacancy to calculate worst case scenario
3) We use todays rental numbers to calculate expected rent and account for rental deprecation of 12.5% to account for worst case scenario
4) We use an interest rate of 5% for those that are buying as a primary residence and 6.5% for investors
5) We account for lost income in downpayment of 2%
6) We Calculate 1%/year of the purchase price for maintenance reserves

nidsclosed tract: Contact Shevy Akason   949-769-1599 

Based upon todays numbers=
Monthly Costs

HOA=               $76
Taxes=             $396.5 (Estimated)
Maintenance=   $117
Insurance=       $60
                       $649.5*12= $7794
*If you hire a property manager your expenses will be higher


Today's market rent= $1600*12=  $19,200-5% vacancy= $18240

Today's Cap rate= $18240-  $7794= $10,446/ $130,000= 8%

tal cost of ownership using IHB calculator= $1007.66*12= $12,091

 $18,240(Gross income)- $12,091 (total cost of ownership) = $6140/ $26,000(initial cash investment)= 23.6%

RentVsOwnulator™