Fresh Start Homes Pro forma

Potential Purchase Price: $87,500
Cash Down 20%: $17,500
Lease Option Sale Price: $114,000
Gross Rental Rate: $1,100

Less Expenses:
Management Fee $110
Property Taxes $95
Insurance $55
Repairs & Maintenance $0
Set-Aside $190
Debt Service 80% LTV $406

Total Est. Expenses $855
Net Income $245

Returns:
Capitalization Rate 14.34%
Cash on Cash Return 16.77%

Sale 12 months
Sale Price $114,000
Less Close Costs 3% $2,280
Less Commissions $3,420

Net Proceeds $108,300

Purchase Price $87,500
Net Profit $20,800
Plus $2,934
Total Return $23,734
Cash Invested $17,500

Total Cash on Cash Return 136%