All Forum Posts by: Omar Mohamed Awad
Omar Mohamed Awad has started 1 posts and replied 2 times.
Post: [Rental Analysis]: Do you think this is a good rental property? (Mississauga, ON)
- Posts 2
- Votes 0
Quote from @Theresa Harris:
Write out the basic numbers. You're -$400 a month, but it isn't clear if that included property taxes, insurance and repairs/maintenance or what. Looks like mortgage is over $4K/month on a 30 year mortgage.
Purchase Price $950,000
Down Payment $70,015 7.37%
Mortgage Insurance 35000
Closing Costs $18,000.00 4% $18,000.00
Interest Rate 4.25%
Term in years 25
Financed Amount $914,985
Payment $4,956.82
Renovations/Repairs $20,000
Out of Pocket Costs $108,015
Monthly Assumed % Manual Input
Rent $6,000
Property Mgmt $480 8.00%
Vacancy $300 5.00%
Maintenance/Repairs $180 3.00%
CapEx $45 0.00% 45
Insurance 50 0.00% 50
Property Taxes 419.7 0.05% 419.7
Rental income tax 0.0 25% 0.0
Expenses Subtotal $1,475
"Annual % Increase
(rent + expenses)" 2.5%
1% rule
Gross monthly rent should be >= 1% to total purchase price
0.63%
GRM (Gross-Rent-Multiplier): the lower, the better
13.2
Cap Rate (Net operating income (annual) / total purchase price): the higher, the better
5.72%
Net Income After Financing (/mo.) = Net operating income - financing costs
-$432
years Monthly CashFlow
1 -$432
2 -$318
3 -$202
4 -$84
5 $38
6 $163
7 $291
8 $422
9 $557
10 $695
11 $836
12 $981
13 $1,129
14 $1,281
15 $1,437
16 $1,597
17 $1,761
18 $1,929
19 $2,101
20 $2,278
