American Homeowner Preservation Short Sale #91

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American Homeowner Preservation Short Sale #91 Powered By Docstoc
					                                                       AMERICAN HOMEOWNER PRESERVATION FINANCIAL PROJECTIONS

                                                                                  Property Address:
                                                                     4419 Silverlake Rd, Pinson, Alabama, 35126

                               Acquisition Price Calculation                                                                      Tenant Affordability

Purchase Price                                                                     $ 15,554.00       Annual Income                                            $ 20,400.00
Program Fee to American Homeowner Preservation                                     $ 2,000.00        Annual Lease Payments                                    $ 6,279.00
Closing Expenses                                                                   $ 0.00            First Year Monthly Lease                                 $ 523.25
Repairs Needed (Major defects if not included)                                     $ 4,800.00        Housing Expense Percentage - Based on Annual Income      31%
Legal Fees                                                                         $ 0.00
Acquisition Price                                                                  $ 22,354.00                             Net Operating Income Calculation

                                Projected Annual Expenses
                                                                                                     Projected Annual Income (Annual Lease Payments)          $ 6,279.00
                                                                                                     Total Projected Annual Expenses                          $ 2,536.96
2009 Property Taxes (likely to be reduced post-closing due to sales price)         $ 945.22          Net Operating Income                                     $ 3,742.04
Estimated Annual Property Insurance                                                $ 600.00
Estimated Annual Repairs *                                                         $ 600                                    Repurchase and Lease Amounts
Estimated Rental Unit Registration Fee                                             $ 15.00
Estimated Annual Management Fee(6% of Lease Payments)** (**if necessary)           $ 376.74
                                                                                   $ 2,536.96        Repurchase Amounts:
                                                                                                     Year One:                                                $ 25,707.10
                            Capitalization Rate Calculation                                          Year Two:                                                $ 25,707.10
                                                                                                     Year Three:                                              $ 26,824.80
                                                                                                     Year Four:                                               $ 27,942.50
Net Operating Income                                                               $ 3,742.04        Year Five:                                               $ 29,060.20
Divided by Acquisition Price                                                       $ 22,354.00
Capitalization Rate                                                                17%               Lease Amounts:
Existing Loan Balance                                                              $ 54,918.00       Year One:                                                $ 523.25
Discount on Debt                                                                   59%               Year Two:                                                $ 538.95
                                                                                                     Year Three:                                              $ 555.12
                                                                                                     Year Four:                                               $ 571.77
                                                                                                     Year Five:                                               $ 588.92


*Note that repairs will be added to option price when repurchased.


Created Date:      January 6th, 2011 7:07PM
                                Resale Option Agreement


                                        Year 1                                     $ 25,707.10
Repairs Reimbursement                                                              $ 600.00
Seller Closing Cost Allowance                                                      $ (500.00)
                                                                                                                                            Estimated Average Annual Return 24%
Estimated Net Sale Proceeds                                                        $ 25,807.10
                                                                                                                                                      Estimated Total Return 71%
Return if repurchased Year 1
Estimated Net Rental Income                                                        $ 3,742.04                                      Year 4                                  $ 27,942.50
Estimated Net Sale Proceeds                                                        $ 25,807.10     Repairs Reimbursement                                                   $ 2,400.00
Original investment                                                                $ (22,354.00)   Seller Closing Cost Allowance                                           $ (500.00)
5% to AHP                                                                          $ (1,117.70)    Estimated Net Sale Proceeds                                             $ 29,842.50
                                                                                   $ 6,077.44
                                                                                                   Return if repurchased Year 4
                                                    Estimated Average Annual Return 27%            Estimated Net Rental Income                                             $ 14,968.16
                                                              Estimated Total Return 27%           Estimated Net Sale Proceeds                                             $ 29,842.50
                                                                                                   Original investment                                                     $ (22,354.00)
                                        Year 2                                     $ 25,707.10     5% to AHP                                                               $ (1,117.70)
Repairs Reimbursement                                                              $ 1,200.00                                                                              $ 21,338.96
Seller Closing Cost Allowance                                                      $ (500.00)
Estimated Net Sale Proceeds                                                        $ 26,407.10                                              Estimated Average Annual Return 24%
                                                                                                                                                      Estimated Total Return 95%
Return if repurchased Year 2
Estimated Net Rental Income                                                        $ 7,484.08                                      Year 5                                  $ 29,060.20
Estimated Net Sale Proceeds                                                        $ 26,407.10     Repairs Reimbursement                                                   $ 3,000.00
Original investment                                                                $ (22,354.00)   Seller Closing Cost Allowance                                           $ (500.00)
5% to AHP                                                                          $ (1,117.70)    Estimated Net Sale Proceeds                                             $ 31,560.20
                                                                                   $ 10,419.48
                                                                                                   Return if repurchased Year 5
                                                    Estimated Average Annual Return 23%            Estimated Net Rental Income                                             $ 18,710.20
                                                              Estimated Total Return 47%           Estimated Net Sale Proceeds                                             $ 31,560.20
                                                                                                   Original investment                                                     $ (22,354.00)
                                        Year 3                                     $ 26,824.80     5% to AHP                                                               $ (1,117.70)
Repairs Reimbursement                                                              $ 1,800.00                                                                              $ 26,798.70
Seller Closing Cost Allowance                                                      $ (500.00)
Estimated Net Sale Proceeds                                                        $ 28,124.80                                              Estimated Average Annual Return 24%
                                                                                                                                                      Estimated Total Return 120%
Return if repurchased Year 3
Estimated Net Rental Income                                                        $ 11,226.12
Estimated Net Sale Proceeds                                                        $ 28,124.80
Original investment                                                                $ (22,354.00)
5% to AHP                                                                          $ (1,117.70)
                                                                                   $ 15,879.22

				
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Description: American Homeowner Preservation