Commercial Underwriting Breakdown
Total Commercial Project Basis
$1,076,500
Purchase Price
$850,000
Rehab & Capital Improvements
$175,000
Acquisition Closing Costs
$25,500 (3.0%)
Holding Costs during Rehab
$26,000
Gross Potential Rent (GPR)
$129,600/yr
Less Vacancy & Credit Loss
-$6,480 (5.0%)
Effective Gross Income (EGI)
$123,120/yr
Less Total Operating Expenses
-$28,120/yr
Net Operating Income (NOI)
$95,000/yr ($7,917/mo)
Cap Rate Valuation
$1,310,345
LTV Cap Loan Amount
$982,758 (75.0% LTV)
DSCR Cap Loan Amount
$934,000 (1.25x Min DSCR)
Constrained by: DSCR Constraint
Approved Commercial Refi Loan Amount
$934,000
Refi Debt Service (P&I Payment)
-$6,467/mo
Net Refi Proceeds (after fees)
$910,650
Capital Left in Deal / Cash Out
$165,850 Left
Cash-on-Cash Return %
10.49%
Instant Equity Created
$376,345