Reference no: EM131928496
1. Debt coverage ratio - net operating income/ annual debt service
2. Gross rent multiplier -Market price/ potential gross income
3. Break even ratio - Operating expenses + debt service/ Effective gross income
4. Operating ration - operating expense/effective gross income
5. Net income multipliers - Market price/net operating income
Gross rental Income
$ 148,516.00
Other Income
$ -
Vacancy Loss
$7,426.00
Effective Gross Income
$ 141,090.00
Taxes
$6,956.00
Operating Expense
$44,947.00
Total Expenses
$51,903.00
Net Operating Income
$89,187.00
The fifth property is located at 2922 Hoyt Ave, Everett, WA 98201 and features an apartment complex with 15 units for a total of $749,000. The property is located minutes from new Everett water front development, navy base, downtown shopping and a bus line. The property is near the Boeing Everett factory, located 25 miles from Seattle, and 35 minutes away from restaurants, bars, and coffee shops with a walk score of 94. The expected cost of purchase is 606,690 $ (Purchase price $749,000 - Down payment $149,800 closing cost + $7490). The monthly payment is $4,715, which consist of principal and interest $3,986, property tax $662 and insurance of $67. For the annual payment, $4,715 is multiplied by 12 to get the expected annual payment of $56,580.
Purchase price $749,0000
Expected cos to of purchase $606,690
Monthly payment $4715
Annual payment 56,580