Investment Property Analysis Sheet

Provided by Joe Massey of Castle & Cooke Mortgage

Direct: 303-809-7769 - Email: jmassey@castlecookemortgage.com - Website: http://jmassey.castlecookemortgage.com

Instructions: 1 - Work your way down this sheet inputting the appropriate information in to each highlighted tab.
2 - Be sure to input the correct number of units for your subject property (SFR through Four-Plex)
Latest Revision Date: 3 - Please note that certain lines have comments to provide additional help for you
December 1st, 2017 4 - Once the highlighted cells are completed, you can view your results on the Cash-Flow Tab and What-If Tab

Property Address 507 S L St

Number of Units 3

WARNING - Borrower needs more down payment!

Down Payment Percentage 13%
Minimum Down Payment on Multi-Unit is 25%.
Purchase Price $ 535,000
Acquisition Costs $ 2,500
Loan Costs $ 15,359
Down Payment $ 69,550
Mortgage Balance $ 465,450
Initial Repair Costs $ 1,000.00
Total Initial Investment $ 88,409

Mortgage Interest Rate 4.375%

Mortgage Term (years) 30
Extra Principal per Month 0

MONTHLY Rental Income Per Unit

Unit #1 $ 1,800
Unit #2 $ -
Unit #3 $ 1,200
Unit #4
Total Rental Income $ 3,000

Vacancy Factor 7%

Annual Rent Increase 2%

Annual Appreciation Rate 6.0%

ANNUAL Operating Expenses Comments/Footnotes On Expenses

Real Estate Taxes 8616 Unit 1: 3/2 (sep, 900 sf), Unit 2: 3/2 (900 sf $1600), Unit 3: 2/1 (650 sf)
Property Insurance 2400
Property Management $ - Standard 10% of gross rents for Property Management
Repairs and Maintenance $ 1,800 Generally a minimum of 5% for repairs/maintenance
Utilities (If paid by owner)
- Water and Sewer
- Trash
- Electric
Landscaping
HOA Dues
Other
Other
Other
Other
Other

What If Scenarios
What if you got a discount on the purchase price… What percentage? 5%
What if you lowered expenses…. What percentage? 5%
What if you increased rents… What percentage? 5%

This sheet is for informational purposes only. This is not a commitment, approval or guarantee to lend. The figures included in this worksheet are entirely
dependent on the information that you input. These figures and calculations are considered accurate, but not guaranteed. Joe Massey and Castle & Cooke
Mortgage do not represent, warrant or guarantee these numbers. All information is for preliminary analysis and calculations only. Please contact your tax
advisor, CPA, financial planner, attorney, insurance agent, real estate agent or other properly licensed professional for additional information as needed.
Cash Flow Analysis for 507 S L St

Number of Units 3

Cash Investment Breakdown

Purchase Price $ 535,000
Mortgage $ 465,450
Down Payment $ 69,550
Estimated Finance and Acquisition Costs $ 17,859
Repair Costs $ 1,000
Total Cash Investment $ 88,409

Annual Cash Flow Statement

Annual Income
Annual Rental Income $ 36,000 $3,000 per month
- Vacancy 7% $ (2,520)
Expected Annual Rental Income $ 33,480

Annual Expenses Comments/Footnotes

Real Estate Taxes $ 8,616 Unit 1: 3/2 (sep, 900 sf), Unit 2: 3/2 (900 sf $1600), Unit 3: 2/1 (650 sf)
Property Insurance $ 2,400 -
Property Management $ - Standard 10% of gross rents for Property Management
Repairs and Maintenance $ 1,800 Generally a minimum of 5% for repairs/maintenance
Utilities (If paid by owner) $ - -
Water and Sewer $ - -
Trash $ - -
Electric $ - -
Landscaping $ - -
HOA Dues $ - -
Other $ - -
Other $ - -
Other $ - -
Other $ - -
Other $ - -
Total Annual Expenses $ 12,816

Net Operating Income $ 20,664

Less: Annual Mortgage Payments $ (27,887) $465,450 @ 4.375% = $2,323.92 per month

Annual Cash Flow Before Taxes $ (7,223)

Cash-on-Cash Rate of Return -8% -$7,223 ÷ $88,409 = -8%

CAP Rate 3.9% $20,664 ÷ $536,000 = 3.9%

GRM - Gross Rent Multiplier 178.7 $536,000 ÷ $3,000 = 178.7

5 Year After-Tax Return 15.1% 5 Year After Tax Cash-flows + 5 Year Exit - Capital Gains

This sheet is for informational purposes only. This is not a commitment, approval or guarantee to lend. The figures included in this worksheet are entirely dependent on
the information that you input. These figures and calculations are considered accurate, but not guaranteed. Joe Massey and Castle & Cooke Mortgage do not represent,
warrant or guarantee these numbers. All information is for preliminary analysis and calculations only. Please contact your tax advisor, CPA, financial planner, attorney,
insurance agent, real estate agent or other properly licensed professional for additional information as needed.
Cash Flow Analysis for 507 S L St Cash Investment Breakdown
Purchase Price $ 535,000
Number of Units 3 Mortgage $ 465,450
Down Payment $ 69,550
Estimated Finance and Acquisition Costs $ 17,859
Repair Costs $ 1,000
Total Cash Investment $ 88,409
Annual Cash Flow Statement

Annual Income Year 1 Year 2 Year 3 Year 4 Year 5

Annual Rental Income $ 36,000 $ 36,720 $ 37,454 $ 38,203 $ 38,968
- Vacancy 7% $ (2,520) $ (2,570) $ (2,622) $ (2,674) $ (2,728)
Expected Annual Rental Income $ 33,480 $ 34,150 $ 34,833 $ 35,529 $ 36,240

Annual Expenses
Real Estate Taxes $ 8,616 $ 9,133 $ 9,681 $ 10,262 $ 10,878
Property Insurance $ 2,400 $ 2,472 $ 2,546 $ 2,623 $ 2,701
Property Management $ - $ - $ - $ - $ -
Repairs and Maintenance $ 1,800 $ 1,854 $ 1,910 $ 1,967 $ 2,026
Utilities (If paid by owner) $ - $ - $ - $ - $ -
Water and Sewer $ - $ - $ - $ - $ -
Trash $ - $ - $ - $ - $ -
Electric $ - $ - $ - $ - $ -
Landscaping $ - $ - $ - $ - $ -
HOA Dues $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Total Annual Expenses $ 12,816 $ 13,459 $ 14,137 $ 14,851 $ 15,605

Net Operating Income $ 20,664 $ 20,691 $ 20,696 $ 20,678 $ 20,635

Less: Annual Mortgage Payments $ (27,887) $ (27,887) $ (27,887) $ (27,887) $ (27,887)

Annual Cash Flow Before Taxes $ (7,223) $ (7,196) $ (7,191) $ (7,209) $ (7,252)

Property Value at End of Year $ 567,100 $ 601,126 $ 637,194 $ 675,425 $ 715,951

Mortgage Balance at End of Year $ 457,774 $ 449,755 $ 441,378 $ 432,627 $ 423,485
Total Equity $ 109,326 $ 151,371 $ 195,816 $ 242,798 $ 292,465
Equity + Cash Flow $ 102,103 $ 144,175 $ 188,625 $ 235,589 $ 285,214
Annual Rate of Return 15.5% 39.4% 42.1% 45.0% 48.0%

Cumulative Cash Flow $ (7,223) $ (14,420) $ (21,611) $ (28,820) $ (36,072)

Cash on Cash Rate of Return -8.2% -16.3% -24.4% -32.6% -40.8%

Cumulative Cash and Equity Gain $ 13,695 $ 48,543 $ 85,797 $ 125,570 $ 167,985
Rate of Return on Initial Cash Investment 15.5% 54.9% 97.0% 142.0% 190.0%

This sheet is for informational purposes only. This is not a commitment, approval or guarantee to lend. The figures included in this worksheet are entirely dependent on the information that you input.
These figures and calculations are considered accurate, but not guaranteed. Joe Massey and Castle & Cooke Mortgage do not represent, warrant or guarantee these numbers. All information is for
preliminary analysis and calculations only. Please contact your tax advisor, CPA, financial planner, attorney, insurance agent, real estate agent or other properly licensed professional for additional
information as needed.
Cash Flow Analysis for 507 S L St Cash Investment Breakdown
Purchase Price $ 535,000
Number of Units 3 Mortgage $ 465,450
Down Payment $ 69,550
Estimated Finance and Acquisition Costs $ 17,859
Repair Costs $ 1,000
Total Cash Investment $ 88,409
Annual Cash Flow Statement

Annual Income Year 1 Year 2 Year 3 Year 4 Year 5

Annual Rental Income $ 36,000 $ 36,720 $ 37,454 $ 38,203 $ 38,968
- Vacancy 7% $ (2,520) $ (2,570) $ (2,622) $ (2,674) $ (2,728)
Expected Annual Rental Income $ 33,480 $ 34,150 $ 34,833 $ 35,529 $ 36,240

Annual Expenses
Real Estate Taxes $ 8,616 $ 9,133 $ 9,681 $ 10,262 $ 10,878
Property Insurance $ 2,400 $ 2,472 $ 2,546 $ 2,623 $ 2,701
Property Management $ - $ - $ - $ - $ -
Repairs and Maintenance $ 1,800 $ 1,854 $ 1,910 $ 1,967 $ 2,026
Utilities (If paid by owner) $ - $ - $ - $ - $ -
Water and Sewer $ - $ - $ - $ - $ -
Trash $ - $ - $ - $ - $ -
Electric $ - $ - $ - $ - $ -
Landscaping $ - $ - $ - $ - $ -
HOA Dues $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Total Annual Expenses $ 12,816 $ 13,459 $ 14,137 $ 14,851 $ 15,605

Net Operating Income $ 20,664 $ 20,691 $ 20,696 $ 20,678 $ 20,635

Less: Annual Mortgage Payments $ (27,887) $ (27,887) $ (27,887) $ (27,887) $ (27,887)

Annual Cash Flow Before Taxes $ (7,223) $ (7,196) $ (7,191) $ (7,209) $ (7,252)

Property Value at End of Year $ 567,100 $ 601,126 $ 637,194 $ 675,425 $ 715,951

Mortgage Balance at End of Year $ 457,774 $ 449,755 $ 441,378 $ 432,627 $ 423,485
Total Equity $ 109,326 $ 151,371 $ 195,816 $ 242,798 $ 292,465
Equity + Cash Flow $ 102,103 $ 144,175 $ 188,625 $ 235,589 $ 285,214
Annual Rate of Return 15.5% 39.4% 42.1% 45.0% 48.0%

Cumulative Cash Flow $ (7,223) $ (14,420) $ (21,611) $ (28,820) $ (36,072)

Cash on Cash Rate of Return -8.2% -16.3% -24.4% -32.6% -40.8%

Cumulative Cash and Equity Gain $ 13,695 $ 48,543 $ 85,797 $ 125,570 $ 167,985
Rate of Return on Initial Cash Investment 15.5% 54.9% 97.0% 142.0% 190.0%

This sheet is for informational purposes only. This is not a commitment, approval or guarantee to lend. The figures included in this worksheet are entirely dependent on the information that you input.
These figures and calculations are considered accurate, but not guaranteed. Joe Massey and Castle & Cooke Mortgage do not represent, warrant or guarantee these numbers. All information is for
preliminary analysis and calculations only. Please contact your tax advisor, CPA, financial planner, attorney, insurance agent, real estate agent or other properly licensed professional for additional
information as needed.
Cash Flow Analysis for 507 S L St Cash Investment Breakdown
Purchase Price $ 535,000
Number of Units 3 Mortgage $ 465,450
Down Payment $ 69,550
Estimated Finance and Acquisition Costs $ 17,859
Repair Costs $ 1,000
Total Cash Investment $ 88,409
Annual Cash Flow Statement

Annual Income Year 1 Year 2 Year 3 Year 4 Year 5

Annual Rental Income $ 36,000 $ 36,720 $ 37,454 $ 38,203 $ 38,968
- Vacancy 7% $ (2,520) $ (2,570) $ (2,622) $ (2,674) $ (2,728)
Expected Annual Rental Income $ 33,480 $ 34,150 $ 34,833 $ 35,529 $ 36,240

Annual Expenses
Real Estate Taxes $ 8,616 $ 9,133 $ 9,681 $ 10,262 $ 10,878
Property Insurance $ 2,400 $ 2,472 $ 2,546 $ 2,623 $ 2,701
Property Management $ - $ - $ - $ - $ -
Repairs and Maintenance $ 1,800 $ 1,854 $ 1,910 $ 1,967 $ 2,026
Utilities (If paid by owner) $ - $ - $ - $ - $ -
Water and Sewer $ - $ - $ - $ - $ -
Trash $ - $ - $ - $ - $ -
Electric $ - $ - $ - $ - $ -
Landscaping $ - $ - $ - $ - $ -
HOA Dues $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Total Annual Expenses $ 12,816 $ 13,459 $ 14,137 $ 14,851 $ 15,605

Net Operating Income $ 20,664 $ 20,691 $ 20,696 $ 20,678 $ 20,635

Less: Annual Mortgage Payments $ (27,887) $ (27,887) $ (27,887) $ (27,887) $ (27,887)

Annual Cash Flow Before Taxes $ (7,223) $ (7,196) $ (7,191) $ (7,209) $ (7,252)

Property Value at End of Year $ 567,100 $ 601,126 $ 637,194 $ 675,425 $ 715,951

Mortgage Balance at End of Year $ 464,997 $ 464,174 $ 462,988 $ 461,447 $ 459,557
Total Equity $ 102,103 $ 136,952 $ 174,205 $ 213,979 $ 256,394
Equity + Cash Flow $ 102,103 $ 136,952 $ 174,205 $ 213,979 $ 256,394
Annual Rate of Return 15.5% 54.9% 97.0% 142.0% 190.0%

Cumulative Cash Flow $ - $ - $ - $ - $ -

Cash on Cash Rate of Return 0.0% 0.0% 0.0% 0.0% 0.0%

Cumulative Cash and Equity Gain $ 13,695 $ 48,543 $ 85,797 $ 125,570 $ 167,985
Rate of Return on Initial Cash Investment 15.5% 54.9% 97.0% 142.0% 190.0%

This sheet is for informational purposes only. This is not a commitment, approval or guarantee to lend. The figures included in this worksheet are entirely dependent on the information that you input.
These figures and calculations are considered accurate, but not guaranteed. Joe Massey and Castle & Cooke Mortgage do not represent, warrant or guarantee these numbers. All information is for
preliminary analysis and calculations only. Please contact your tax advisor, CPA, financial planner, attorney, insurance agent, real estate agent or other properly licensed professional for additional
information as needed.
"What-If" Analysis for 507 S L St
What If… What If… What If… What If…

Actual from Cash …we purchased the …we increased …we decreased …we purchased at a discount,
Description Flow Analysis property at a discount rents. expenses increased rents and
decreased expenses

Cash Investment Breakdown

Purchase Price $ 535,000 $ 508,250.00 $ 535,000 $ 535,000 $ 508,250
Mortgage $ 465,450 $ 442,177.50 $ 465,450 $ 465,450 $ 442,178
Down Payment $ 69,550 $ 66,072.50 $ 69,550 $ 69,550 $ 66,073
Estimated Prepaid Costs $ 2,500 $ 2,500.00 $ 2,500 $ 2,500 $ 2,500
Estimated Fincnace Costs $ 15,359 $ 5,579.60 $ 15,359 $ 15,359 $ 5,580
Repair Costs $ 1,000 $ 1,000.00 $ 1,000 $ 1,000 $ 1,000
Total Cash Investment $ 88,409 $ 75,152 $ 88,409 $ 88,409 $ 75,152

Annual Cash Flow Statement

Annual Income
Annual Rental Income $ 36,000 $ 36,000 $ 37,800.00 $ 36,000 $ 37,800.00
- Vacancy $ (2,520) $ (2,520) $ (2,646) $ (2,520) $ (2,646)
Expected Annual Rental Income $ 33,480 $ 33,480 $ 35,154 $ 33,480 $ 35,154

Annual Expenses
Real Estate Taxes $ 8,616 $ 8,616 $ 8,616 $ 8,616 $ 8,616
Property Insurance $ 2,400 $ 2,400 $ 2,400 $ 2,280 $ 2,280
Property Management $ - $ - $ - $ - $ -
Repairs and Maintenance $ 1,800 $ 1,800 $ 1,800 $ 1,710 $ 1,710
Utilities (If paid by owner) $ - $ - $ - $ - $ -
Water and Sewer $ - $ - $ - $ - $ -
Trash $ - $ - $ - $ - $ -
Electric $ - $ - $ - $ - $ -
Landscaping $ - $ - $ - $ - $ -
HOA Dues $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Other $ - $ - $ - $ - $ -
Total Annual Expenses $ 12,816 $ 12,816 $ 12,816.00 $ 12,606.00 $ 12,606.00

Net Operating Income $ 20,664 $ 20,664 $ 22,338 $ 20,874 $ 22,548

Less: Annual Mortgage Payments $ (27,887) $ (26,493) $ (27,887) $ (27,887) $ (26,493)

Annual Cash Flow Before Taxes $ (7,223) $ (5,829) $ (5,549) $ (7,013) $ (3,945)

Cash-on-Cash Rate of Return -8% -8% -6% -8% -5%

CAP Rate 3.9% 4.1% 4.2% 3.9% 4.4%

This sheet is for informational purposes only. This is not a commitment, approval or guarantee to lend. The figures included in this worksheet are entirely dependent on the information that you input. These figures and calculations are considered accurate, but not guaranteed. Joe Massey and
Castle & Cooke Mortgage do not represent, warrant or guarantee these numbers. All information is for preliminary analysis and calculations only. Please contact your tax advisor, CPA, financial planner, attorney, insurance agent, real estate agent or other properly licensed professional for
additional information as needed.