Investment Division
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      Investment Rental Scenarios

      Scenario 1: Pre-construction Condo

      Purchase Price:
      $269,900

      Down payment: $53,800 (20%)

      Mortgage: $261,100

      Mortgage Terms:
      25 Year Amortization
      5 Year Term
      2.6% on a $215,000 mortgage
      20% down payment

      MONTHLY EXPENSES

       

      Mortgage Payment: -$980
      Taxes: -$200
      Insurance: - $50

      -$1,230

       

      *tenants pay utilities

      MONTHLY INCOME

       

      Rent: $1,350
      Expenses: $-1,230
      Monthly Cash Flow: +80


      Scenario 2: Semi-Detached / Townhome

      Purchase Price:
      $269,900

      Down payment: $53,800 (20%)

      Mortgage: $261,100

      Mortgage Terms:
      25 Year Amortization
      5 Year Term
      2.6% on a $215,000 mortgage
      20% down payment

      MONTHLY EXPENSES

       

      Mortgage Payment: -$980
      Taxes: -$200
      Insurance: - $50

      -$1,230

       

      *tenants pay utilities

      MONTHLY INCOME

       

      Rent: $1,350
      Expenses: $-1,230
      Monthly Cash Flow: +80

       

      Scenario 3: Buy the Semi/Townhouse with little of your own money

      The home you’ve owned and lived in for several years is now worth $300,000 with $125,000 left on the mortgage.
        

      Through the bank, you are able to get a “HELOC” (Home Equity Line of Credit) where they lend you 65% of the value ($195,000).  Once you subtract your outstanding mortgage amount, you are left with a maximum loan amount of $70,000. 

      You decide to borrow $50,000 at 3.5% interest costing you $146/month.


      You use this $50,000 as a down payment on this income property.

      Purchase Price:
      $269,900

      Down payment: $53,800 (20%)

      Mortgage: $261,100

      Mortgage Terms:
      25 Year Amortization
      5 Year Term
      2.6% on a $215,000 mortgage
      20% down payment

      MONTHLY EXPENSES

       

      Mortgage Payment: -$980
      Taxes: -$200
      Insurance: - $50

      HELOC Borrowing Cost: -$146

      -$1,376

       

      *tenants pay utilities

      MONTHLY INCOME

       

      Rent: $1,350
      Expenses: $-1,376
      Monthly Cash Flow: -$26

       

      Scenario 4: Student Rental

      Purchase Price:
      $255,000

      Down payment: $76,000
      (Typically 30% for student rentals)

      Mortgage: $178,500

      Mortgage Terms:
      25 Year Amortization
      5 Year Term
      2.6% on a $178,500 mortgage
      30% down payment

      MONTHLY EXPENSES

       

      Mortgage Payment: -$808
      Taxes: -$205
      Insurance: - $100

      Condo: -$265

      -$1,375

       

      *tenants pay utilities

      MONTHLY INCOME

       

      Rent: $1,750
      (4 Bdrm x $425)
      Expenses: $-1,375
      Monthly Cash Flow: +$325

       

      Scenario 5: 5-Plex (Multi-Family)

      Purchase Price:
      $500,000

      Down payment: $100,000
      (20% Downpayment)

      Mortgage: $400,000

      Mortgage Terms:
      25 Year Amortization
      5 Year Term
      3% on a $399,920 mortgage
      20% down payment

      MONTHLY EXPENSES

       

      Mortgage Payment: -$1,892
      Common area utilities: -$375
      Taxes: - $150

      Maintenance: -$200
      Property Management: -$200
      Vacancy: -$200

      -$3,397

       

      *tenants pay utilities

      MONTHLY INCOME

       

      Rent: $4,000
      (5 Bdrm x $800)
      Expenses: $-3,397
      Monthly Cash Flow: +$603