Renovated Fourplex - Four 2BD/1.5BA Townhomes
Arkansas
8 Beds6 BathsBuilt 1982
Estimated Square Feet4,792
Initial Market Value$600,000
Price$600,000
Down Payment $150,000
Closing Costs $9,000
Loan Origination and/or Buydown Points $0
Other Costs and Fixup$0
Approximate Cash Invested $159,000
Minimum Recommended Cash Reserves $24,000
Cost per Square Foot / per Bedroom $125 / $75,000
Monthly Rent per SQFT / per Bedroom $1.15 / $690
Projected IncomeMonthlyAnnual
Projected Rent$5,519$66,228
Vacancy Losses ($442)($5,298)
Operating Income $5,077$60,930
Estimated ExpensesMonthlyAnnual
Property Taxes($375)($4,500)
Insurance($300)($3,600)
Management Fees$0$0
Leasing/Advertising Fees($0)($2)
Association Fees$0$0
Maintenance($276)($3,311)
Other (Utilities, Supplies, etc.)$0$0
Operating Expenses ($951)($11,413)
Net PerformanceMonthlyAnnual
Net Operating Income $4,126$49,516
- Mortgage Payments($2,844)($34,132)
= Cash Flow $1,282$15,385
+ Principal Reduction $419$5,030
+ Potential Cost Seg Tax Savings $3,000$36,000
+ Inflation Induced Debt Destruction® (IIDD) - Beta $1,388$16,650
+ One Year Appreciation $2,500$30,000
= Gross Equity Income $8,589$103,064
Mortgage InfoFirstSecond
Loan-to-Value Ratio 75%N/A
Loan Amount$450,000N/A
Monthly Payment$2,844.31N/A
Loan TypeAmortizing FixedN/A
Term30 YearsN/A
Nominal / Real Interest Rate 6.500% / 2.800%N/A
Monthly PMI$0N/A
Empowered Investor® Indicators
Rent-to-Value Ratio™ (RV Ratio™)0.92%
Debt Coverage Ratio 1.45
Annual Gross Rent Multiplier9
Capitalization Rate 8.3%
Cash on Cash Return 10%
Base Return on Investment (ROI) 32%
Inflation-Enhanced ROI™ (with IIDD) 42%
Tax-Optimized ROI™ (Cost Seg+IIDD) 65%
+ Tax Benefits: Deductions, Depreciation, 1031 Exchange, etc.
Assumptions & Projections
Projected Appreciation Rate5.0%
Gov CPI Inflation September '26 3.7%
Vacancy Rate8%
Management Fee0%
Maintenance Percentage5%
Comments
Renovated 4-unit townhome building. Four 2BD/1.5BA units with white shaker cabinets, stainless appliances, LVP floors and private fenced patios. Each building sits on its own platted lot. 100% occupied at $5,519/mo.
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.