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Case Study of 1108 Mckinley Street
Property: 3 bed/2 bath, 2 car garage with front and backyards
Year Built: 1980
Square Footage: 1125 |
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| 2006 price: |
$320,000 |
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$284.44 |
PER SF |
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| Our price: |
$82,500 |
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$73.33 |
PER SF |
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| Source: |
Foreclosure sale |
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| Actual Investment: |
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Funds to purchase the Investment: |
Highlights of Rehabiliation: |
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| $82,500 |
Purchase price |
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$74,250 |
Investor Contribution |
- Remove and replace Kitchen |
| $5,000 |
Rehabiliation budget |
|
$13,250 |
Ardor Contribution |
cabinet doors/drawers |
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- Remove and replace some |
| $87,500 |
Total Investment |
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$87,500 |
Total Investor Contribution |
Interior doors |
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- Remove and replace carpeting |
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- Install new stove top range |
| Operating Model: |
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- Fresh paint throughout unit |
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| Monthly lease income from tenants |
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$1,150 |
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| Monthly lease income (x12 = Annual) |
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$13,800 |
6.34 GRM |
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| Vacancy budget (4%) |
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($552) |
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| Operating Expenses (22%) |
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($3,036) |
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| Gross Profit |
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$10,212 |
11.67% Cap rate |
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| Preferred Pay Out: |
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| 1st 8%of Investor Contribution paid to investors |
$7,000 |
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| ($87,500 * .08) |
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| Incremental Pay out above 8% |
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| Investors (75%) |
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$2,409 |
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| Ardor Capital Partners (25%) |
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$803 |
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| Total |
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$10,212 |
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| Total investor return ($7,000 + $2,409) = |
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$9,409 |
10.75% |
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