RENTAL ANALYSIS & Equity Tap
On this sheet plug in the numbers for your deal into the yellow sections. This will give you a ball-park figure of what it will cost you to fund your deal, and give an idea of what your monthly income & expenses may look like under various scenarios.
RENTAL ANALYSIS Purchase price $ Appraised Value or ARV $ Down Payment % Loan Origination Fee % Seller Contribution to Closing Costs % Annual Taxes $ Interest Rate Annual Insurance $
65,000 150,000 10% 1% 5% 1,200 6.50% 450
ESTIMATED COST OF CLOSING PRIMARY LOAN LOAN 58,500 DOWN PAYMENT 6,500 TOTAL PRICE 65,000 Loan Origination Fee Settlement Or Closing Fee Attorney's Fees Title Insurance Title Examination Document Preparation State Tax/Stamps Post Closing Fee To Record Deeds Recording Fees Credit Rpt Processing Underwriting Courier Flood Cert Misc 1 Year Insurance premiums prepaid 3 Mo Insurance premiums prepaid 6 Months Taxes Total Closing Cost Down Payment Gross Funding Costs Less Seller Closing Contribution To Closing Costs $ Est. Net Funding Costs 585 450 395 281 175 125 72 65 30 42 35 175 285 33 35 59 450 113 600 4,004 6,500 10,504 (3,250) 7,254
Insurance Taxes Other Monthly PMI if applicable Principal & Interest TOTAL MONTHLY PAYMENT MARKET RENT PER MONTH NET EST. MONTHLY INCOME
$ $ $ $ $ $ $ $
38 100 370 507 1,000 493
How Much Of An Equityline Can I Tap In This Deal? Depending on the borrowers credit and other factors, some lenders will allow owners of investment properties to secure a line of credit against their properties for up to 80% of the Appraised value of the property. This means that if you owe $80k on a house worth $150k, the lender may give you a reusable credit line for up to $40k ($150k x 80% - $80k), as illustrated below. Use this equity line check to tackle another deal, or to reinvest. Make sure that Its a reusable credit line with checks that you can use, not the line used to purchase the property. Appraised value Max Credit line % Max Credit line amount Current Primary loan Balance Gross Equity Available To Tap & Use 150,000 80% 120,000 58,500 61,500
Credit Line Financing Terms Amount Borrowed On CreditLine Interest Only Annual Percentage Rate Est. Monthly Note On Credit Line Monthly Note On Primary Loan Total Est. Monthly Expense Monthly Market Rent Less: Total Est. Monthly Expense Net income
30,000 10% 250 507 757 1,000 (757) 243
To quickly determine the max you can borrow on a creditline to ensure a guaranteed profit, just use Excel's Goal Seek Function. So for this example, do the following: 1. Select cell C55 (the Net Income amount) 2. From the Tools Menu select Goal Seek 3. Change the To Value field to the desired number $150 4. Set the value in the By Changing field to C46 (Amount On Creditline 5. Click Ok 6. If you like the result of the automatic calculation, click Ok. 7. The Amount Borrowed On Creditline Amount will then be set to the amount you need to reach your income goal
Please note that these figures and calculations are for demonstration purposes only. You actual cost may be significantly higher or lower due to a variety of factors including professional fees variation, available credit, lender guidelines, PMI premiums, and other unforeseen expenses. Please consult with a financial advisor before you make any investment decisions
Contact us at 678.683.0646 for more information. Send an email to tips@tbdinvesting.com for a free gift worth $25.00 visit our website for our info on our latest deep discount deals www.tbdinvesting.com
UNLOCKED VERSION
On this sheet plug in the numbers for your deal into the yellow sections. This will give you a ball-park figure of what it will cost you to fund your deal, and give an idea of what your monthly income & expenses may look like under various scenarios.
RENTAL ANALYSIS Purchase price $ 88,889 Appraised Value or ARV $ 150,000 Down Payment % 10% Loan Origination Fee % 1% Seller Contribution to Closing Costs % 5%
ESTIMATED COST OF CLOSING PRIMARY LOAN LOAN 80,000 DOWN PAYMENT 8,889 TOTAL PRICE 88,889 Loan Origination Fee Settlement Or Closing Fee Attorney's Fees Title Insurance Title Examination Document Preparation State Tax/Stamps Post Closing Fee To Record Deeds Recording Fees Credit Rpt Processing Underwriting Courier Flood Cert Misc 1 Year Insurance premiums prepaid 3 Mo Insurance premiums prepaid 6 Months Taxes Total Closing Cost Down Payment Gross Funding Costs Less Seller Closing Contribution To Closing Costs $ Est. Net Funding Costs 800 450 395 281 175 125 72 65 30 42 35 175 285 33 35 80 450 113 600 4,241 8,889 13,129 (4,444) 8,685
Annual Taxes Interest Rate Annual Insurance
$ $
1,200 6.50% 450
Insurance Taxes Other Monthly PMI if applicable Principal & Interest TOTAL MONTHLY PAYMENT MARKET RENT PER MONTH NET EST. MONTHLY INCOME
$ $ $ $ $ $ $ $
38 100 506 643 1,000 357
How Much Of The Equity Can I Tap In This Deal? Depending on the borrowers credit and other factors, some lenders will allow owners of investment properties to secure a line of credit against their properties for up to 80% of the Appraised value of the property. This means that if you owe $80k on a house worth $150k, the lender may give you a reusable credit line for up to $40k ($150k x 80% $80k), as illustrated below. Use this equity line check to tackle another deal, or to reinvest. Make sure that Its a reusable credit line with checks that you can use, not the line used to purchase the property. Appraised value Max Credit line % Max Credit line amount Current Primary loan Balance Gross Equity Available To Tap & Use 150,000 80% 120,000 80,000 40,000
Credit Line Financing Terms Amount Borrowed On CreditLine Interest Only Annual Percentage Rate Est. Monthly Note On Credit Line Monthly Note On Primary Loan Total Est. Monthly Expense Monthly Market Rent Less: Total Est. Monthly Expense Net income
35,000 10% 292 643 935 1,000 (935) 65
To quickly determine the max you can borrow on a creditline to ensure a guaranteed profit, just use Excel's Goal Seek Function. So for this example, do the following: 1. Select cell C55 (the Net Income amount) 2. From the Tools Menu select Goal Seek 3. Change the To Value field to the desired number $150 4. Set the value in the By Changing field to C46 (Amount On Creditline 5. Click Ok 6. If you like the result of the automatic calculation, click Ok. 7. The Amount Borrowed On Creditline Amount will then be set to the amount you need to reach your income goal
Please note that these figures and calculations are for demonstration purposes only. You actual cost may be significantly higher or lower due to a variety of factors including professional fees variation, available credit, lender guidelines, PMI premiums, and other unforeseen expenses. Please consult with a financial advisor before you make any investment decisions
Contact us at 678.683.0646 for more information. Send an email to tips@tbdinvesting.com for a free gift worth $25.00 visit our website for our info on our latest deep discount deals www.tbdinvesting.com