Whitman: Whitman Ave, East Orange NJ 07017

Whitman Ave, East Orange, NJ 07017

Investment strategy: Fix and Flip

Purchase Price$ 164,000

Rehab Estimate$ 125,000

Project Profit$ 2,805

After Repair Value$ 325,000

Investment Summary

After Repair Value	$ 325,000
Calculated Project Profit	$ 2,805
70% Rule 70% Rule Widely accepted ratio among rehabbers used as a barometer for purchasing a rehab property: Purchase price with repair costs should not exceed 70% of ARV. 70% Rule Widely accepted ratio among rehabbers used as a barometer for purchasing a rehab property: Purchase price with repair costs should not exceed 70% of ARV.	88.92 %
Return on Investment	1.21 %
Project Term	6 months

Financial Breakdown

Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 305,945
Financing	$ 75,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 230,945

Project Cost Breakdown

Purchase Costs
Purchase Price	$ 164,000
Buying Costs	$ 8,095
Total	$ 172,095

Repair Costs
Repair Costs Lump Sum	$ 125,000
Total	$ 125,000

Holding Costs
Monthly Holding Costs	$ 975
Monthly Loan Payments (interest)	$ 500
Total Months Held	6
Total	$ 8,850

Selling Costs
Commissions (5%)	$ 16,250
Selling Costs	$ 0
Total	$ 16,250

Purchase Price	$ 164,000
Address	Whitman Ave , East Orange, 07017, NJ

Financial Breakdown

Purchase Price	$ 164,000
Purchase Costs	$ 8,095
Repair Costs	$ 125,000
Holding Costs	$ 8,850
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 305,945
Financing	$ 75,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 230,945
Cash at Closing Cash at Closing This number includes down payment and loan points. Cash at Closing This number includes down payment and loan points.	$ 0
Cash During Flip Cash During Flip Shows the cash amount remaining to fund the Flip. Cash During Flip Shows the cash amount remaining to fund the Flip.	$ 230,945

Project Returns

Gross Rehab Profit	$ 2,805
Return on Investment	1.21 %
Annualized ROI	2.42 %
Internal Rate of Return	3.30 %

Timeline Assumptions

Rehab Period	4 months
Listing Period	2 months
Total Holding Period	6 months

Financing		% of ARV
Down Payment	$ 0	0.00 %
Loan	$ 75,000	23.08 %

Loan Financing of: Specific amount ($ 75,000)
Type	Interest-Only
Loan Amount	$ 75,000
Down payment (0%)	$ 0
Loan term	6 months
Interest Rate	8.00 %
Monthly Payment	$ 500.00

This charts shows the influence of leverage on Return on Investment (ROI). Purchase price is considered as the Value in the LTV ratio here. The calculation considers all buying, holding, repair and selling costs, purchase price, ARV and an interest-only loan with rate of 8.00% p.a.

Month	0	1	2	3	4	5	6
Purchase/Sale	$ -164,000						$ 325,000
Financing	$ 75,000						$ -75,000
Closing Costs	$ 8,095						$ -16,250
Holding Costs		$ -975	$ -975	$ -975	$ -975	$ -975	$ -975
Rehab Draws		$ -31,250	$ -31,250	$ -31,250	$ -31,250
Loan Payment		$ -500	$ -500	$ -500	$ -500	$ -500	$ -500
Cash Flow	$ -97,095	$ -32,725	$ -32,725	$ -32,725	$ -32,725	$ -1,475	$ 232,275

Sale Proceeds Breakdown

After Repair Value	$ 325,000
Cost of Sale Cost of Sale This includes agent commission and costs such as marketing, home warranty, attorney charges, title/escrow fees and other. Cost of Sale This includes agent commission and costs such as marketing, home warranty, attorney charges, title/escrow fees and other.	$ 16,250
Repair Costs	$ 125,000
Holding Costs (6 months) Holding Costs This includes costs such as utilities, maintenance, insurance, HOA dues, but loan interest is not included. Holding Costs This includes costs such as utilities, maintenance, insurance, HOA dues, but loan interest is not included.	$ 5,850
Financing Costs Financing This amount sums interest paid on any loans and capital partner funds plus loan points and costs. Financing This amount sums interest paid on any loans and capital partner funds plus loan points and costs.	$ 3,000
Purchase Purchase incl. Costs Sums up the purchase price and all associated closing costs, such as title/escrow fees, attorney fees, inspections, appraisal etc. Purchase incl. Costs Sums up the purchase price and all associated closing costs, such as title/escrow fees, attorney fees, inspections, appraisal etc.	$ 172,095
Net Rehab Profit	$ 2,805

Property Report :

Whitman

Whitman Ave, East Orange, NJ 07017

Executive Summary

Whitman Ave, East Orange, NJ 07017

Investment Summary

70% Rule

70% Rule

Financial Breakdown

Total Capital Needed

Total Capital Needed

Cash out of Pocket

Cash out of Pocket

Project Cost Breakdown

Property Description

Financial Analysis

Financial Breakdown

Total Capital Needed

Total Capital Needed

Cash out of Pocket

Cash out of Pocket

Cash at Closing

Cash at Closing

Cash During Flip

Cash During Flip

Project Returns

Timeline Assumptions

Financing Overview

Cash Flow Forecast

Resale Analysis

Sale Proceeds Breakdown

Cost of Sale

Cost of Sale

Holding Costs

Holding Costs

Financing

Financing

Purchase incl. Costs

Purchase incl. Costs

Photos

Property Report: Whitman FIX & FLIP

Property Report :

Whitman

Whitman Ave, East Orange, NJ 07017

Executive Summary

Whitman Ave, East Orange, NJ 07017

Investment Summary

70% Rule

70% Rule

Financial Breakdown

Total Capital Needed

Total Capital Needed

Cash out of Pocket

Cash out of Pocket

Project Cost Breakdown

Property Description

Financial Analysis

Financial Breakdown

Total Capital Needed

Total Capital Needed

Cash out of Pocket

Cash out of Pocket

Cash at Closing

Cash at Closing

Cash During Flip

Cash During Flip

Project Returns

Timeline Assumptions

Financing Overview

Cash Flow Forecast

Resale Analysis

Sale Proceeds Breakdown

Cost of Sale

Cost of Sale

Holding Costs

Holding Costs

Financing

Financing

Purchase incl. Costs

Purchase incl. Costs

Photos