Deal Sheet for 1242 Lake View Rd Copake, NY 12516
Property Details:
- Type: Single Family Home
- Size: 1,800 SQF
- Layout: 3 Bed, 2 Bath
- Features: Waterfront, Views, Fireplace, Hot Tub, Outdoor Space, Scenic Views, Cozy
Purchase and Setup Costs:
- Purchase Price: $395,000
- Closing Costs: $10,000
- Renovation Costs: $40,000
- Furnishing Costs: $40,000
- Total Initial Investment: $485,000
Financing Details:
- Down Payment: 25% of $395,000 = $98,750
- Loan Amount: 75% of $395,000 = $296,250
- Interest Rate: 7.5%
- Loan Term: 30 years
Income Projections:
- Average Daily Rate (ADR): $325
- Annual Occupancy: 50%
- Expected Annual Rental Income: $59,312.50
Operating Expenses (Annually):
- Property Management Fee: 10% of Rental Income = $5,931.25
- Energy Costs: $3,000
- Taxes: $7,000
- Insurance: $1,000
- Maintenance: $1,000
- Total Operating Expenses: $17,931.25
Exit Strategy:
- Refinance after 3 years if mortgage rates are lower.
- Plan to sell after 10 years.
10-Year Cash Flow and Cash on Cash Return Table:
- Cash on Cash Return: Approximately 45.96%
- Capitalization Rate: Approximately 10.48%
- Total Rental Income: Approximately $557,069
| Year | Annual Rental Income | Operating Expenses | NOI | Mortgage Payments | Annual Cash Flow | Cumulative Cash Flow | Cash on Cash Return (%) |
|---|---|---|---|---|---|---|---|
| 1 | $59,312.50 | $17,931.25 | $41,381.25 | $24,868 | $16,513.25 | $16,513.25 | 3.40 |
| 2 | $61,091.88 | $18,479.19 | $42,612.69 | $24,868 | $17,744.69 | $34,257.94 | 7.06 |
| 3 | $62,904.63 | $19,043.57 | $43,861.06 | $24,868 | $18,993.06 | $53,251.00 | 10.98 |
| 4 | $64,752.77 | $19,624.88 | $45,127.89 | $24,868 | $20,259.89 | $73,510.89 | 15.16 |
| 5 | $66,635.85 | $20,223.43 | $46,412.42 | $24,868 | $21,544.42 | $95,055.31 | 19.60 |
| 6 | $68,555.32 | $20,830.13 | $47,725.19 | $24,868 | $22,857.19 | $117,912.50 | 24.31 |
| 7 | $70,511.98 | $21,455.09 | $49,056.89 | $24,868 | $24,188.89 | $142,101.39 | 29.29 |
| 8 | $72,507.54 | $22,098.74 | $50,408.80 | $24,868 | $25,540.80 | $167,642.19 | 34.56 |
| 9 | $74,542.76 | $22,761.70 | $51,781.06 | $24,868 | $26,913.06 | $194,555.25 | 40.12 |
| 10 | $76,618.54 | $23,444.55 | $53,173.99 | $24,868 | $28,305.99 | $222,861.24 | 45.96 |
This table provides an overview of the estimated financial performance over 10 years with a 7.5% mortgage rate.
The cash on cash return is calculated based on the initial investment and the operational dynamics of the property.
Investor Updates:
- Communication Platforms: Email and Slack
- Frequency: Quarterly updates