1. Down payment
Purchase price × down payment %
$189,000.00 × 20%
$37,800.00
2. Loan amount
Purchase price − down payment
$189,000.00 − $37,800.00
$151,200.00
3. Total cash in
Down payment + closing costs + rehab
$37,800.00 + $5,670.00 + $8,000.00
$51,470.00
4. Monthly principal & interest
P × r(1+r)ⁿ / ((1+r)ⁿ − 1), r = rate/12, n = years×12
P = $151,200.00, rate = 6.5%, term = 30 years
$955.69
5. Gross scheduled income
Monthly rent × 12
$2,195.00 × 12
$26,340.00
6. Vacancy loss
Gross scheduled income × vacancy %
$26,340.00 × 5%
$1,317.00
7. Effective gross income
Gross scheduled income − vacancy loss
$26,340.00 − $1,317.00
$25,023.00
8. Maintenance
Gross scheduled income × maintenance % of rent
$26,340.00 × 8%
$2,107.20
9. Property management
Gross scheduled income × PM % of rent
$26,340.00 × 0%
$0.00
10. Operating expenses
Taxes + insurance + maintenance + property management
$2,724.00 + $1,140.00 + $2,107.20 + $0.00
$5,971.20
11. Net operating income
Effective gross income − operating expenses
$25,023.00 − $5,971.20
$19,051.80
12. Cap rate
NOI ÷ purchase price
$19,051.80 ÷ $189,000.00
10.1%
13. Monthly cash flow
(NOI − annual debt service) ÷ 12
($19,051.80 − $11,468.24) ÷ 12
$631.96
14. Cash-on-cash return
Annual cash flow ÷ total cash in
$7,583.56 ÷ $51,470.00
14.7%
15. DSCR
NOI ÷ annual debt service
$19,051.80 ÷ $11,468.24
1.66×
16. Hold-period value (3% appreciation assumption)
Purchase price × (1 + appreciation %) ^ hold years
$189,000.00 × (1 + 3%) ^ 5
$219,102.80
17. Remaining loan balance
Amortized balance after hold-period payments
60 payments on a 30-year loan
$141,539.80
18. Hold-period equity
Future value − remaining loan balance
$219,102.80 − $141,539.80
$77,563.00