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Case Study of 834 Robin Drive
Property: 3 bed/2 bath, 2 car garage with front and backyards
Year Built: 1980
Square Footage: 1125 |
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| 2006 price: |
$232,000 |
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$206.22 |
PER SF |
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| Our price: |
$85,000 |
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$75.56 |
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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| $85,000 |
Purchase price |
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$76,500 |
Investor Contribution |
- Remove and replace Kitchen |
| $6,312 |
Rehabiliation budget |
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$14,812 |
Ardor Contribution |
cabinet doors/drawers |
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- Remove and replace some |
| $91,312 |
Total Investment |
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$91,312 |
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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- Install new fire safe door from |
| Monthly lease income from tenants |
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$1,100 |
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garage to house |
| Monthly lease income (x12 = Annual) |
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$13,200 |
6.92 GRM |
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| Vacancy budget (4%) |
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($528) |
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| Operating Expenses (22%) |
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($2,904) |
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| Gross Profit |
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$9,768 |
10.70% Cap rate |
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| Preferred Pay Out: |
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| 1st 8%of Investor Contribution paid to investors |
$7,305 |
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| ($94,028 * .08) |
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| Incremental Pay out above 8% |
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| Investors (75%) |
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$1,847 |
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| Ardor Capital Partners (25%) |
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$616 |
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| Total |
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$9,768 |
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| Total investor return ($7,522 + $1,684) = |
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$9,152 |
10.02% |
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