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Case Study of 3496 LakeCrest Avenue
Property: 3 bed/2 bath, 2 car garage with front and backyards
Year Built: 1980
Square Footage: 1464 |
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| 2006 price: |
$320,000 |
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$218.58 |
PER SF |
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| Our price: |
$112,146 |
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$76.60 |
PER SF |
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| Source: |
Short sale |
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| Actual Investment: |
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Funds to purchase the Investment: |
Highlights of Rehabiliation: |
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| $112,146 |
Purchase price |
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$100,931 |
Investor Contribution |
- Partial interior painting |
| $2,251 |
Rehabiliation budget |
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$13,466 |
Ardor Contribution |
- Landscaping manicure |
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- Remove and replace carpeting |
| $114,397 |
Total Investment |
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$114,397 |
Total Investor Contribution |
- Install new stove top range |
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| Operating Model: |
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| Monthly lease income from tenants |
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$1,250 |
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| Monthly lease income (x12 = Annual) |
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$15,000 |
7.63 GRM |
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| Vacancy budget (4%) |
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($600) |
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| Operating Expenses (25%) |
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($3,750) |
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| Gross Profit |
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$10,650 |
9.31% Cap rate |
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| Preferred Pay Out: |
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| 1st 8%of Investor Contribution paid to investors |
$9,152 |
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| ($114,397 * .08) |
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| Incremental Pay out above 8% |
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| Investors (75%) |
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$1,124 |
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| Ardor Capital Partners (25%) |
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$375 |
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| Total |
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$10,650 |
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| Total investor return ($9,152 + $1,124) = |
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$10,275 |
8.98% |
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