Proforma

 

  

Disclaimer:
1. Refinancing is subject to appraisal of desired value
2. Taxes are no yet assessed
3. Condo fees not finalized
Purchase Price $ 275,000
25% Down Payment $   68,750
First Mortgage $ 206,250
       
@ 5.5 % for 35 years

$ 1099.23

/month

 
Tax $ 95.00    
Condo Fees $ 145.00    
Total $ 1339.23 /month   Current Rent: 1000/month, Lease end: April 30/07
       
A) Rent for 1500/month
 

PCF 160.77 x 12 = 1929.24/year = 3.2 % Cash ROI
Assuming 10% appreciation $31,500 ROI is:
1929.24 + 31,500 = 33,429.24/68,750 = 48.62% ROI.

B) Refinance at 315,000 Gets $30,000 cash back
(leaving $38,750 in the property)

NEW mortgage           236,250
New payment                1,259.12/month
Property Tax                      95.00/month
Condo Fees                      145.00/month
Total  1499.12/month = 0.87/month PCF x 12 = 10.44

PLUS Appreciation (10%) 31,500

31,510.44/$38,750 = 81.32% ROI!!!