Every property is different, but the following example is intended to illustrate a reasonable projection as to how buying a duplex property in Orange County might return as much as $50,000 or more profit to an investor (as much as 40% ROI on an investment of $125,000) based on certain assumptions such as the purchase price, cost to repair cost, loan fees, purchase price, and resale value.
There are certainly no guarantees, but it is the intended goal of Result Properties to select the best property on the market, perform due-diligence, disclose the risks, and present the deal to you along with the projected profit, then move forward into a "Letter of Intent" and make and offer and go into escrow and then execute a Limited Partnberhsip Agreement. We are confident that you will be in on some of the best bargains on the market as we turn over rocks, make use of our REO network, and deliver the results you are looking for.
| Anticipated Purchase Price | $189,000 | |||
| Loan | Private Money Loan/Construction Loan From Thrift Bank | $113,400 | ||
| Limited Partner Investment | $125,476 | |||
| Closing Costs | ||||
| Insurance Policy | $1,500 | |||
| Closing Costs | 2.0% | $3,780 | ||
| Construction Escrow | $1,000 | |||
| Loan Fees | 6.0% | $6,804 | ||
| Subtotal Closing Costs | $13,084 | |||
| Carry Cost | ||||
| 4 months loan payments | $3,780 | |||
| 4 months insurance | $250 | |||
| 4 months taxes | $662 | |||
| 4 months utilities | $400 | |||
| Subtotal Carrying Costs | $5,092 | |||
| Rehab Costs | ||||
| Flooring | $4,000 | |||
| Demolition | $500 | |||
| Doors | $1,000 | |||
| Windows | $1,000 | |||
| Termite Treatment/Repair | $3,000 | |||
| Drywall | $0 | |||
| Rough Plumbing | $1,000 | |||
| Rough Electrical | $0 | |||
| Lighting | $0 | |||
| HVAC | $200 | |||
| Roof | $0 | |||
| Paint | $5,000 | |||
| Appliances | $0 | |||
| Finish Carpentry, baseboard, | $2,000 | |||
| Cabinets/Countertops | $0 | |||
| Landscape | $3,000 | |||
| Misc Repairs | $1,000 | |||
| Dumpster, Portable Toilet, | $1,000 | |||
| Permits | $0 | |||
| Supplies | $1,000 | |||
| Contractor Fee | $5,000 | |||
| Contingency | $3,000 | |||
| Subtotal Rehab Costs | $31,700 | |||
| Total of Carry Costs and Rehab Costs (Excludes closing fees) | $36,792 | |||
| Total Project Cost So Far | $212,708 | |||
| Appraised Value | $ 375,000 | |||
| Proposed Listing Price | $350,000 | |||
| Proceeds of Sale at "Resale" Price (Soft Market) | $335,000 | |||
| Pay Closing Costs | 2% | -$5,025 | ||
| Prepayment Penalty | 1% | -$1,134 | ||
| Marketing Costs and Broker Fee | 6% | -$18,425 | ||
| Pay Off Loan | -$113,400 | |||
| Return Original Investment to Limited Partner | -$125,476 | |||
| Net Proceeds From Sale (Profit) | $71,541 | |||
| 46% | Cash on Cash Return | 80% to Limited Partner | $ 57,232 | |
| 20% to General Partner | $ 14,308 | |||
Every property is different, but the following example is intended to illustrate a resonable projection showing how buying a duplex property in Santa Ana might return as much as 7.43% cash-on-cash return for a $243,000 investment based on certain assumptions as to repair costs, loan fees, purchase rice, and resale value:
| 8.68 | GRM | ||
Purchase Price | $799,000 | 8.65% | CAP For Acquisition Purposes | |
Loan Fee | $5,993 | 1.00% | Loan Points | |
Capital Improvements | $10,000 | |||
Insurance | $2,000 | |||
Rental Deposits | -$5,600 | |||
Closing Costs | $11,985 | 1.50% | ||
Total Acquisition Cost | $823,378 | | | |
| ||||
1st TD | $599,250 | 75.00% | LTV | |
2nd TD | $0 | 0.00% | LTV | |
Total Down payment and closing costs | $224,128 | |||
Total Sources of Funds | $823,378 | | | |
| ||||
| Monthly | Annually | ||
Gross Scheduled Income | $7,670 | $92,040 | ||
Total Gross Income | $7,670 | $92,040 | ||
Less Vacancy | -$384 | -$4,602 | 5% | |
Effective Gross Income | $8,054 | $96,642 | ||
Utilities | -$300 | -$3,500 | ||
Trash | -$208 | -$2,500 | ||
Accounting | -$42 | -$500 | ||
Gardening | -$65 | -$780 | ||
Maintenance | -$150 | -$4,000 | ||
Property Taxes | -$832 | -$9,988 | 1.25% | |
License | -$33 | -$400 | ||
Property Manager | -$322 | -$3,866 | 4% | |
PMI | $0 | $0 | ||
Insurance | -$167 | -$2,000 | ||
NOI | $5,934 | $69,109 | | |
Loan Payment (1st TD) | $4,024.28 | $48,291 | Debt Cov Ratio | 1.43% |
Loan Payment (2nd TD) | $0 | $0 | Debt Cov Ratio | 1.43% |
Gross Spendable Income | $1,910 | $20,817 | | |
| ||||
Disbursement to Limited Partner | $1,528 | $16,654 | 7.43% | Cash on Cash Return |
Disbursement to General Partner | $382 | $4,163 | ||