Ted C. Brock - Investment Property Specialist

I. SPECIALIZING IN RENTAL PROPERTIES

Residential Financing:
Single Family Homes and Patio Homes
Condominiums and Town homes
Duplex, Triplex, and 4-Plex Apartment Buildings

INVESTMENT PROPERTY EXAMPLE (30% Total Return On Investment)

DESCRIPTION: 4-UNIT APARTMENT BUILDING (4-PLEX)

Purchase Price: $330,000

20% Down Pymt: $66,000 (10%-20% on Residential Loan)

Yearly Net Income: $30,780 ($675 in Rent x 4 units x .95 (5% vacancy) x 12 months)

Yearly Expenses: $9,000 ($1,900 in Taxes, $2,000 in Water/Sewer/Trash, $1,000 for insurance, $1,800 for Maintenance, and $2,300 for Management)

NOI - Net Operating Income : $21,780 ($30,780 (Income) - $9,000 (Expense))

CAP Rate: 6.6% ($21,780 (NOI)/ $330,000 (Purchase Price))

Debt Service or Mortgage Payment (Principle & Interest): $21,605 ($264,000 loan @ at 7.25% interest for 30 years fixed)

Cash Flow: $175 ($21,780 (NOI) - $21,605 (Principle & Interest))

ROI - Return on Investment: 0.27% ($175 (Cash Flow) / $66,000 (Amount Invested or Down Payment))

*ADDITIONAL RETURN ON INVESTMENT EACH YEAR*:
$2,100 in Debt Service Pay-Down (Reduction in Mortgage)
$7,500 in Potential Tax Shelter (Depreciation and Mortgage Interest Paid)
$9,900 in Appreciation (Assuming 3% Appreciation)

***Return on Investment could be an additional $19,500 ($2,100 + $7,500 + $9,900) for a TOTAL RETURN ON INVESTMENT OF $19,675 the first year or 30% ($19,675 / $66,000).

CLICK TO VIEW *** FEATURED INVESTMENT PROPERTY LISTINGS ***