1234 N.

Main St Kansas City, MO 64116

RENTAL INVESTMENT

PURCHASE ANALYSIS
After Repair Value $200,000
% of ARV AFTER REPAIR VALUE
Purchase Price $100,000 50%
Buying Costs
Construction Costs
$2,000
$45,000
1%
23%
$200,000
Holding Costs $1,760 1%
Financing Costs $10,710 5% TOTAL PROJECT COSTS
Selling Costs $14,000 7%
Total Project Costs $173,470 87% $173,470
PROFIT/EQUITY FROM REHAB $26,530 13%
PROFIT/EQUITY FROM REHAB
FINANCING
Total Project Costs (excl. Selling)
Long Term Financing
$159,470
-$116,000
80% $26,530
INVESTOR CASH IN DEAL $43,470 20%
INVESTOR CASH IN DEAL
RENTAL PRO FORMA
Revenues monthly yearly
$43,470
Monthly Rental Income $1,250 $15,000
Vacancy Loss -8.3% -$104 -$1,250 MONTHLY RENTAL INCOME
Tenant Concessions $0 $0
Other Income
Gross Operating Income
$0
$1,146
$0
$13,750
$1,146 /mo
Operating Expenses -$542 -$6,500 MONTHLY CASH FLOW

Net Operating Income $604 $7,250 -$19 /mo

Financing
Mortgage Payment (interest) -$480 -$5,761 LEVERED CASH-ON-CASH ROI
Mortgage Payment (principal) -$143 -$1,711
Total Financing -$623 -$7,473 -0.51%
Cash Flow
Cash Flow After Debt -$19 -$223 TOTAL RETURN (cash + equity)
Levered Cash on Cash ROI -0.04% -0.51%

Equity
$292 /mo
Equity Earned (principal paydown) $143 $1,711
Equity Earned (property appreciation) $168 $2,020 TOTAL RETURN %
Total Equity Earned $311 $3,731

Total Return (cash + equity) $292 $3,509

8.07%
Total ROI (cash + equity) 0.67% 8.07%

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1234 N. Main St Kansas City, MO 64116

CASH FLOW REPORT

Revenues 1 2 3 4 5 6 7 8 9 10
Rental Income 15,000 15,150 15,302 15,455 15,609 15,765 15,923 16,082 16,243 16,405
Vacancy Loss Amount -1,250 -1,263 -1,275 -1,288 -1,301 -1,314 -1,327 -1,340 -1,354 -1,367
Tenant Concessions 0 0 0 0 0 0 0 0 0 0
Other Income 0 0 0 0 0 0 0 0 0 0
Gross Operating Income 13,750 13,888 14,026 14,167 14,308 14,451 14,596 14,742 14,889 15,038

Operating Expenses
Property Taxes -2,000 -2,020 -2,040 -2,061 -2,081 -2,102 -2,123 -2,144 -2,166 -2,187
Property Insurance -1,000 -1,010 -1,020 -1,030 -1,041 -1,051 -1,062 -1,072 -1,083 -1,094
Cleaning and Maintenance: 0 0 0 0 0 0 0 0 0 0
HOA Dues: 0 0 0 0 0 0 0 0 0 0
Lawn and Groundskeeping: 0 0 0 0 0 0 0 0 0 0
Auto and Travel: 0 0 0 0 0 0 0 0 0 0
Electrical Utilities: 0 0 0 0 0 0 0 0 0 0
Water Utilities: -600 -606 -612 -618 -624 -631 -637 -643 -650 -656
Gas Utilities: -900 -909 -918 -927 -937 -946 -955 -965 -975 -984
Garbage: 0 0 0 0 0 0 0 0 0 0
Advertising: -250 -253 -255 -258 -260 -263 -265 -268 -271 -273
Accounting & Legal: -250 -253 -255 -258 -260 -263 -265 -268 -271 -273
Other 1: 0 0 0 0 0 0 0 0 0 0
Other 2: 0 0 0 0 0 0 0 0 0 0
Property Management (%): 0 0 0 0 0 0 0 0 0 0
Repairs (%): -1,500 -1,515 -1,530 -1,545 -1,561 -1,577 -1,592 -1,608 -1,624 -1,641
Cap Ex (%): 0 0 0 0 0 0 0 0 0 0
Total Operating Expenses -6,500 -6,565 -6,631 -6,697 -6,764 -6,832 -6,900 -6,969 -7,039 -7,109

Net Operating Income 7,250 7,323 7,396 7,470 7,544 7,620 7,696 7,773 7,851 7,929

Financing
Mortgage PMT (Interest) -5,761 -5,674 -5,582 -5,485 -5,383 -5,276 -5,164 -5,046 -4,922 -4,791
Mortgage PMT (Principal) -1,711 -1,799 -1,891 -1,988 -2,089 -2,196 -2,309 -2,427 -2,551 -2,682
Total Financing -7,473 -7,473 -7,473 -7,473 -7,473 -7,473 -7,473 -7,473 -7,473 -7,473
Loan Balance 114,289 112,490 110,599 108,611 106,521 104,325 102,016 99,589 97,038 94,357

Property Value 202,000 204,020 206,060 208,121 210,202 212,304 214,427 216,571 218,737 220,924

Cash Flow
Cash Flow -223 -150 -77 -3 72 147 223 300 378 457
Levered Cash-On-Cash ROI -0.51% -0.35% -0.18% -0.01% 0.17% 0.34% 0.51% 0.69% 0.87% 1.05%

Equity
Equity Earned from Purchase & Rehab 26,530 0 0 0 0 0 0 0 0 0
Equity Earned (Principal Paydown) 1,711 1,799 1,891 1,988 2,089 2,196 2,309 2,427 2,551 2,682
Equity Earned (Appreciation) 2,000 2,020 2,040 2,061 2,081 2,102 2,123 2,144 2,166 2,187
Total Equity Earned 30,241 3,819 3,931 4,048 4,171 4,298 4,432 4,571 4,717 4,869

Total Return
Total Return 30,019 3,669 3,854 4,045 4,242 4,446 4,655 4,872 5,095 5,326
Total Return-on-Cash 69.06% 77.50% 86.36% 95.67% 105.43% 115.66% 126.37% 137.57% 149.29% 161.54%

Venture Sheets [email protected] (816) 388-0197 www.venturesheets.com

1234 N. Main St Kansas City, MO 64116

CASH FLOW REPORT

Revenues 11 12 13 14 15 16 17 18 19 20
Rental Income 16,569 16,735 16,902 17,071 17,242 17,415 17,589 17,765 17,942 18,122
Vacancy Loss Amount -1,381 -1,395 -1,409 -1,423 -1,437 -1,451 -1,466 -1,480 -1,495 -1,510
Tenant Concessions 0 0 0 0 0 0 0 0 0 0
Other Income 0 0 0 0 0 0 0 0 0 0
Gross Operating Income 15,189 15,340 15,494 15,649 15,805 15,963 16,123 16,284 16,447 16,611

Operating Expenses
Property Taxes -2,209 -2,231 -2,254 -2,276 -2,299 -2,322 -2,345 -2,369 -2,392 -2,416
Property Insurance -1,105 -1,116 -1,127 -1,138 -1,149 -1,161 -1,173 -1,184 -1,196 -1,208
Cleaning and Maintenance: 0 0 0 0 0 0 0 0 0 0
HOA Dues: 0 0 0 0 0 0 0 0 0 0
Lawn and Groundskeeping: 0 0 0 0 0 0 0 0 0 0
Auto and Travel: 0 0 0 0 0 0 0 0 0 0
Electrical Utilities: 0 0 0 0 0 0 0 0 0 0
Water Utilities: -663 -669 -676 -683 -690 -697 -704 -711 -718 -725
Gas Utilities: -994 -1,004 -1,014 -1,024 -1,035 -1,045 -1,055 -1,066 -1,077 -1,087
Garbage: 0 0 0 0 0 0 0 0 0 0
Advertising: -276 -279 -282 -285 -287 -290 -293 -296 -299 -302
Accounting & Legal: -276 -279 -282 -285 -287 -290 -293 -296 -299 -302
Other 1: 0 0 0 0 0 0 0 0 0 0
Other 2: 0 0 0 0 0 0 0 0 0 0
Property Management (%): 0 0 0 0 0 0 0 0 0 0
Repairs (%): -1,657 -1,674 -1,690 -1,707 -1,724 -1,741 -1,759 -1,776 -1,794 -1,812
Cap Ex (%): 0 0 0 0 0 0 0 0 0 0
Total Operating Expenses -7,180 -7,252 -7,324 -7,398 -7,472 -7,546 -7,622 -7,698 -7,775 -7,853

Net Operating Income 8,009 8,089 8,169 8,251 8,334 8,417 8,501 8,586 8,672 8,759

Financing
Mortgage PMT (Interest) -4,654 -4,510 -4,358 -4,199 -4,031 -3,855 -3,670 -3,475 -3,271 -3,056
Mortgage PMT (Principal) -2,819 -2,963 -3,115 -3,274 -3,441 -3,617 -3,803 -3,997 -4,202 -4,417
Total Financing -7,473 -7,473 -7,473 -7,473 -7,473 -7,473 -7,473 -7,473 -7,473 -7,473
Loan Balance 91,538 88,575 85,461 82,187 78,745 75,128 71,325 67,328 63,127 58,710

Property Value 223,134 225,365 227,619 229,895 232,194 234,516 236,861 239,229 241,622 244,038

Cash Flow
Cash Flow 536 616 697 779 861 944 1,029 1,114 1,200 1,286
Levered Cash-On-Cash ROI 1.23% 1.42% 1.60% 1.79% 1.98% 2.17% 2.37% 2.56% 2.76% 2.96%

Equity
Equity Earned from Purchase & Rehab 0 0 0 0 0 0 0 0 0 0
Equity Earned (Principal Paydown) 2,819 2,963 3,115 3,274 3,441 3,617 3,803 3,997 4,202 4,417
Equity Earned (Appreciation) 2,209 2,231 2,254 2,276 2,299 2,322 2,345 2,369 2,392 2,416
Total Equity Earned 5,028 5,194 5,368 5,550 5,740 5,939 6,148 6,366 6,594 6,833

Total Return
Total Return 5,564 5,810 6,065 6,329 6,601 6,884 7,176 7,479 7,793 8,119
Total Return-on-Cash 174.34% 187.71% 201.66% 216.22% 231.41% 247.24% 263.75% 280.96% 298.89% 317.56%

Venture Sheets [email protected] (816) 388-0197 www.venturesheets.com

1234 N. Main St Kansas City, MO 64116

CASH FLOW REPORT

Revenues 21 22 23 24 25 26 27 28 29 30
Rental Income 18,303 18,486 18,671 18,857 19,046 19,236 19,429 19,623 19,819 20,018
Vacancy Loss Amount -1,525 -1,540 -1,556 -1,571 -1,587 -1,603 -1,619 -1,635 -1,652 -1,668
Tenant Concessions 0 0 0 0 0 0 0 0 0 0
Other Income 0 0 0 0 0 0 0 0 0 0
Gross Operating Income 16,778 16,945 17,115 17,286 17,459 17,633 17,810 17,988 18,168 18,349

Operating Expenses
Property Taxes -2,440 -2,465 -2,489 -2,514 -2,539 -2,565 -2,591 -2,616 -2,643 -2,669
Property Insurance -1,220 -1,232 -1,245 -1,257 -1,270 -1,282 -1,295 -1,308 -1,321 -1,335
Cleaning and Maintenance: 0 0 0 0 0 0 0 0 0 0
HOA Dues: 0 0 0 0 0 0 0 0 0 0
Lawn and Groundskeeping: 0 0 0 0 0 0 0 0 0 0
Auto and Travel: 0 0 0 0 0 0 0 0 0 0
Electrical Utilities: 0 0 0 0 0 0 0 0 0 0
Water Utilities: -732 -739 -747 -754 -762 -769 -777 -785 -793 -801
Gas Utilities: -1,098 -1,109 -1,120 -1,131 -1,143 -1,154 -1,166 -1,177 -1,189 -1,201
Garbage: 0 0 0 0 0 0 0 0 0 0
Advertising: -305 -308 -311 -314 -317 -321 -324 -327 -330 -334
Accounting & Legal: -305 -308 -311 -314 -317 -321 -324 -327 -330 -334
Other 1: 0 0 0 0 0 0 0 0 0 0
Other 2: 0 0 0 0 0 0 0 0 0 0
Property Management (%): 0 0 0 0 0 0 0 0 0 0
Repairs (%): -1,830 -1,849 -1,867 -1,886 -1,905 -1,924 -1,943 -1,962 -1,982 -2,002
Cap Ex (%): 0 0 0 0 0 0 0 0 0 0
Total Operating Expenses -7,931 -8,011 -8,091 -8,172 -8,253 -8,336 -8,419 -8,503 -8,588 -8,674

Net Operating Income 8,846 8,935 9,024 9,114 9,206 9,298 9,391 9,485 9,579 9,675

Financing
Mortgage PMT (Interest) -2,830 -2,593 -2,343 -2,080 -1,805 -1,515 -1,210 -889 -553 -199
Mortgage PMT (Principal) -4,642 -4,880 -5,130 -5,392 -5,668 -5,958 -6,263 -6,583 -6,920 -7,274
Total Financing -7,473 -7,473 -7,473 -7,473 -7,473 -7,473 -7,473 -7,473 -7,473 -7,473
Loan Balance 54,068 49,188 44,058 38,666 32,998 27,040 20,777 14,194 7,274 0

Property Value 246,478 248,943 251,433 253,947 256,486 259,051 261,642 264,258 266,901 269,570

Cash Flow
Cash Flow 1,374 1,462 1,552 1,642 1,733 1,825 1,918 2,012 2,107 2,203
Levered Cash-On-Cash ROI 3.16% 3.36% 3.57% 3.78% 3.99% 4.20% 4.41% 4.63% 4.85% 5.07%

Equity
Equity Earned from Purchase & Rehab 0 0 0 0 0 0 0 0 0 0
Equity Earned (Principal Paydown) 4,642 4,880 5,130 5,392 5,668 5,958 6,263 6,583 6,920 7,274
Equity Earned (Appreciation) 2,440 2,465 2,489 2,514 2,539 2,565 2,591 2,616 2,643 2,669
Total Equity Earned 7,083 7,345 7,619 7,906 8,207 8,523 8,853 9,200 9,563 9,943

Total Return
Total Return 8,457 8,807 9,171 9,548 9,940 10,348 10,771 11,212 11,669 12,146
Total Return-on-Cash 337.02% 357.28% 378.37% 400.34% 423.21% 447.01% 471.79% 497.58% 524.43% 552.37%

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1234 N. Main St Kansas City, MO 64116

PROPERTY PHOTOS

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Venture Sheets [email protected] (816) 388-0197 www.venturesheets.com