2521 Kimball St - Scenario Analysis

Seller Finance
Current Scenario Refi Scenario Scenario

Market Value $250,000 $250,000 $250,000

Mortgage Outstanding 205,000 205,000 205,000
Implied Equity $45,000 $45,000 $45,000

Interest Rate 7.375% 5.250% 7.375%

Mortgage Breakdown
Annual Escrow Expenses
Homeowners Insurance ($1,150.00) ($1,150.00) ($1,150.00)
City Taxes (198.87) (198.87) (198.87)
Annual Escrow Total ($1,348.87) ($1,348.87) ($1,348.87)

Monthly Escrow Expenses:

Homeowners Insurance ($95.83) ($95.83) ($95.83)
City Taxes (16.57) (16.57) (16.57)
Principal and Interest (1,471.14) (1,132.00) (1,471.14)
Monthly Mortgage Payment ($1,583.55) ($1,244.41) ($1,583.55)

Current Rent Payment $1,350.00 $1,350.00 $1,350.00

Sale Price - $250,000 $262,500

Seller Financing:
Buyer Downpayment - - $0.00
Buyer Mortgage - - 262,500.00
Interest Rate - - 7.000%
Buyer Mortgage Payment - - $1,700.00

Transaction Costs:
Loan Fees -
Points -
Legal Fees (2,000.00)
Transaction Fees - ($3,750.00) ($3,937.50)
Appraisal Costs (Buyer) - (400.00) (400.00)
Transfer Tax - - (5,250.00)
Total Transaction Costs $0.00 ($4,150.00) ($11,587.50)

Cash Flow Analysis:

Other Expenses - $0.00 -
Contingency Costs - 0.00 -
Water Bill (50.00) (50.00) -
Monthly Cash Flow (Loss) ($283.55) $55.59 $116.45
Cash Flow Per Partner ($141.77) $27.80 $58.23

Implied Buyer Equity ($22,087.50)

Implied Seller Equity $40,850.00 $52,250.00

CASH OUT AT CLOSE

Taxes
Refund Security Deposit
Tenant Early Move Out Charge
Net Profit
Net Profit Per Partner

TAX FACTORS

Total Principal and Interest Payments ($17,653.68) ($13,584.00) ($17,653.68)

Total Mortgage Interest Paid ($15,500.00) ($11,926.81) ($15,500.00)
Taxable Income Deduction $15,500.00 $11,926.81 $15,500.00
Tax Bracket 20% 20% 20%
Total Tax Benefit $3,100.00 $2,385.36 $3,100.00
Tax Benefit Per Partner $1,550.00 $1,192.68 $1,550.00

Interest as a % of Mortgage 87.8%

TOTAL ANNUAL ECONOMIC BENEFIT ($302.55) $3,052.49 $4,497.45

ANNUAL BENEFIT PER PARTNER ($151.28) $1,526.25 $2,248.73
$1,397.45

ANDRE ANALYSIS

Annual Rent Expense ($16,200.00) ($16,200.00) 0

Annual Mortgage Expense 0 0 ($20,400.00)
Annual Mortgage Interest Paid 0 0 $17,911.28
Tax Benefit 0 0 $3,582.26

Equity Paydown 0 0 $2,488.72

Appreciation Value 0 0 $12,500

TOTAL ANNUAL ECONOMIC BENEFIT ($16,200.00) ($16,200.00) ($1,829.02)

ANNUAL INCREASE IN NET WORTH $18,029.02
 Switches
PMI? 1=Yes, 2=No 1
Owner Mtg 0
Tenant Mtg 0
Trans and Tax Fees on SF? 1

Seller Finance + External Purchase

Refi Scenario Scenario Assumptions Notes

$250,000 $250,000
205,000 205,000 Pricing
$45,000 $45,000 Market Value 250000 BASED ON APPRAISAL
MLS Disc to Mkt Price 4% BASED ON REALTOR EXP
5.250% - Tenant Disc to Mkt Price -5% PREMIUM CHARGED FO

($1,150.00) -
(198.87) -
($1,348.87) -

($95.83) - Mortgage:
(16.57) - Existing Mortgage Amt 205000
(1,132.00) - Mortgage Interest Rate 7.375%
($1,244.41) - Mth Rent Pymt 1350
Mth Mtg Pymt 1471.14
$1,350.00 - Annual PMI 1150 WILL ELIMINATE PMI RE
Annual Taxes 198.87 WILL CHANGE BASED ON
$262,500 $240,000 Months in Year 12

Refinancing:
$0.00 - 1 MTH LIBOR 0.25%
262,500.00 - Margin 4% BEST GUESS - CONTINGE
7.250% - Premium % 0.75% BEST GUESS - CONTINGE
$1,700.00 - Refinance Fees 1500 BEST GUESS - CONTINGE

(2,000.00)
 ($3,937.50) ($12,000.00)
(400.00) -
(5,250.00) (4,800.00)
($11,587.50) ($16,800.00) Seller Financing:
% over Existing Interest -0.375%
% over Refi Interest 2%
- - Buyer Downpayment % 0%
- -
- - Transaction Costs:
$455.59 - Transfer Tax 2% BOTH SIDES PAY 2% TRA
$227.80 - Legal Fees 2000
Transaction Fees 1.5%
($22,087.50) - Appraisal Costs 400
$50,750.00 -
Monthly Maintenance:
$18,200.00 Water Bill 50
(2,730.00) Repair Contingency % 0%
(2,200.00) Other Expenses % 0%
(1,000.00) Contingency Costs % 5%
$12,270.00
$6,135.00 Realtor Fees 5%
Capital Gains Tax 15%
Int Rate
5.000%
($13,584.00) 5.500%
($11,926.81) Seller Assist Scenario - Mortgage Payment Analysis 5.750%
$11,926.81 Base Interest Rate 5.00% 6.000%
20% Term Months 360 6.250%
$2,385.36 Loan Amount $262,500.00 6.500%
$1,192.68 Step Up 0.25% 6.750%
7.000%
7.250%
* 7.500%
$7,852.49 * 7.750%
$3,926.25 * SEE WHAT FEES CAN BE WRAPPED INTO MTG VS. CASH 8.000%
$5,467.13 * DIFFERENCE IN REFINANCING AT HIGHER VALUE 8.250%
* PMI Insurance/Escrow/Taxes? 8.500%
8.750%
Est Ann Appreciation 5% 9.000%
0 9.250%
($20,400.00) Add LTV 9.500%
$17,911.28 Add wrapped up fees 80% 9.750%
$3,582.26 10.000%

$2,488.72 Rental Loss Piece

 $12,500

($1,829.02)
$18,029.02
 1132 Bankrate at 5.25%
1700 Tenant Payment

Dre says $1,700

Who gets mortgage benefits
Lease to own
Whats the optimal scenario
BASED ON APPRAISAL Lease purchase contract
BASED ON REALTOR EXPERTISE TO MOVE FAST Transaction registered with the title and escrow office
PREMIUM CHARGED FOR CREDIT RISK Get escrow partner and CFA, Attorney
Dre Credit report
security instrument must have fastest foreclosure

Next Steps - Dre

Get Appraisal

WILL ELIMINATE PMI REGARDLESS BEFORE 4/1 AFTER APPRAISAL

WILL CHANGE BASED ON APPRAISAL

BEST GUESS - CONTINGENT ON LENDER

BEST GUESS - CONTINGENT ON LENDER
BEST GUESS - CONTINGENT ON LENDER
 2650
3312.5
39750

$7.27

BOTH SIDES PAY 2% TRANSFER TAX

Use the actual tax levels

Monthly Payment
$1,409.16
and escrow office

st foreclosure
25%
Income
Unemployment 1600
Norwich 1200
Kimball 1300
4100 12
49200

regency management group in so merset

trendmaker homes management agency
N47