Gulf Front Condo. Ultimate Perdido Luxury




4 Bedrooms 4 baths, Yr Blt 2006 Sq Ft. 2312 $885,000
Spacious,open design,elegantly furnished condo in upscale Perdido Key. Each bedroom has unbelievable gulf or bay views. Amenities include meandering pool & waterfall, 2nd heated pool, gated entrance, tennis, spa/hot tub, gazebo, theater,fitness area. This is luxury at its best. Unit comes fully furnished.
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Here is the deal of the week for all my investor out there. Over 10% Cash on Cash return View property here
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CIAS Calculations Worksheet | |||||||
| Property Price | $75,000 | Gross Annual Rent | $9,600 | |||||
| Taxes | $646 | Utilities & Trash | $0 | |||||
| Insurance | $895 | Lawn Service | $0 | |||||
| HOA | $0 | Maintenance | $500 | |||||
| Management | $960 | Vacancy Reserve | $800 | |||||
| Total Expenses= | $3,801 | |||||||
| Gross Annual Rent | $9,600 | |||||||
| - | Total Expenses | $3,801 | ||||||
| NOI= | $5,799 | |||||||
| NOI | $5,799 | |||||||
| Property Price | $75,000 | |||||||
| 0.0773 | Cap Rate = | 7.73% | ||||||
| Debt Service Assumptions | ||||||||
| NOI | $5,799 | # of Years | 30 | |||||
| Debt Service | $3,382 | Rate | 5.00% | |||||
| Cash Flow= | $2,417 | % Down | 30% | |||||
| Closing Costs | $0 | (using 3%) | ||||||
| Payment | $3,382 | (annually) | ||||||
| Cash Flow | $2,417 | |||||||
| Amount Down | $22,500 | |||||||
| 0.1074 | Cash-On-Cash Return= | 10.74% |
Take a look at the most common things that can go wrong when you have guests and learn how to prevent them.
That’s just one of many hosting nightmares that can end your holiday party before it even begins. Thankfully, some of the most damaging mishaps easily can be avoided. We collected five of the most prevalent issues and give you preventative tips to keep your holiday party on track.
Problem: The oven doesn’t heat
For any holiday occasion, the oven is the most important appliance in your house. If it fails to work, the centerpiece of your meal could go from roasted beef, ham, duck, or Tofurky to Peking Duck from the local Chinese takeout joint.
How to avoid:
Problem: The kitchen sink clogs
The day after Thanksgiving is the busiest of the year for plumbers. The prime cause of this clog-a-thon is the mistreatment of drains when cooking holiday feasts. We hope your Thanksgiving went well, and that you avoid clog-a-thons for the rest of the holidays.
How to avoid:
Problem: The heat goes out
As the party’s host, you’re supposed to hang guests’ coats—not apologize to them for having to keep them on. A lack of heat can stop a holiday party dead in its tracks.
How to avoid:
Problem: The toilet stops up
Toilets have a way of clogging up at the worst times, such as during parties and when you have overnight guests. This is especially true if you have a low-flow toilet from the early 1990s.
How to avoid:
Problem: The fridge doesn’t cool
Without a properly functioning refrigerator, your meat could get contaminated, your dairy-based treats could go sour, and you may not be able to save your yummy leftovers. To avoid discovering a warm fridge after it’s too late, take these simple precautions.
How to avoid:
See you at the beach”
Shane Willis MBA
Broker Remax Orange Beach
Certified Investor Agent Specialist
CDPE, E-Pro, 203k
Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
Last week I wrote a post on Capitalization rate in Real Estate investing. I received some responses on and off AR about how cash on cash return differs and which is better. This prompted my second post describing Cash on Cash Return. Here is a refresher for you from my last post
First formula we need to evaluate is the Net Operating Income (NOI). The NOI is calculated by taking your annual rent on the property and subtracting the expenses like utilities, insurance, and homeowners association etc..(notice that I did not say you mortgage or taxes because these are NOT included in this calculation). Next to figure our Capitalization rate all we do is take our NOI and divide it into the purchase price of the property .
Okay now we know NOI which is the first step in the Cash on cash return as well. In order to get our cash on cash return we must take the NOI and add the mortgage payments (including taxes) on the property. This gives us our Pre-Tax income on the property. All we have to do then is divide our pre-tax income by our initial cash investment (this is the actual $$$ you put into the deal) and we get our cash on cash return…….I know I know you want an example OK
Lets go back to our example from my last post. We have a 3 bed 2 bath home for
$120,000. Rent runs around $1,300 a month and expenses are around $1,600 a year so we will say we can make $14,000 a year (these calculations are all done annually). Remember these expenses do NOT count a mortgage
I am going to add a few other things in there as well like Maintenance at $500 a year and a vacancy factor of $1300 a year (just in case it is not rented for a bit) also insurance at $1,000 a year. SO all that added up (including the $1600 from previous paragraph) gives us a total expense of $4,400 a year. That means our NOI is $11,200 a year. If we divide that into our purchase price of $120,000 we have a Capitalization rate of 9.33%. So if you were to pay cash for the property you would earn 9.33% on your money……………But wait what if we leverage and borrow money to buy the property?
Lets say you only put 30% down and get a loan for 5% interest. That means that your annual payments would be around $5,411 a year. If you subtract that from our NOI of $11,200 a year you have a cash-flow of $5,789 every year. Now we use our new formula and take the pre-tax income of $5,789 and divide it into the cash down we used $36,000 (30% of the purchase price of $120,000) and we have a cash on cash return of……………….Drumroll please J………………………16.08%. So in this case you are earning over 16% on your money. I am not quite sure where you will find that rate of return anywhere else.
See you at the beach”
Shane Willis MBA
Broker Remax Orange Beach
Certified Investor Agent Specialist
CDPE, E-Pro, 203k
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