Below are estimated
- Property Details:
- Address: 98 Hall Hill Rd, Ancram, NY 12502
- Type: Single Family Home
- Size: 2,438 Sqft with 4 bedrooms, 3 bathrooms, situated on a 14-acre lot.
- Features: Fireplace, Firepit, Basketball/Tennis Court, Hiking opportunities, Skiing, Roeliff Jansen Creek.
- Financials:
- Purchase Price: Starting offer at $595,000 against an asking price of $695,000.
- Renovation & Setup Costs: Estimated at $100,000.
- Total Investment Needed: $695,000 (assuming full asking price is accepted) + $100,000 = $795,000.
- Mortgage Details: 40% downpayment, resulting in an initial investment of $318,000.
- Crowdsourcing Terms:
- Minimum Investment: $500
- Maximum Investment: $410,000
- Investment Structure: Equity Share, prorated based on investment amount.
- Projected ROI: 222.48% Cash on Cash Return.
- Duration of Investment: 10 years.
- Revenue Projections:
- Expected Annual Rental Income: $82,080.
- Annual Occupancy Rate: 60%.
- Operational Costs (Annually):
- Fixed Costs: $10,400.
- Mortgage: $29,954.
- Exit Strategy:
- Refinance: Expected between 3-4 years, contingent on favorable mortgage rates.
- Sale: Intend to sell the property at year 10.
- Risks & Mitigation:
- Market Fluctuation: In the event of a slow short-term rental market, the property will be listed as a long-term rental.
- Property Damage: Covered by insurance.
- Low Occupancy: Will implement marketing strategies, promotions, and competitive pricing.
- Timeline & Milestones:
- Acquisition: Expected in 90 days.
- Renovation: 30 days.
- Listing Date: Immediately post-renovation.
- First Check-in: January.
- Contact & Communication:
- Frequency: Monthly.
- Method: Updates will be provided over Slack and through the ShortStays investor portal.
For the 10 Years Invested
| Return (IRR): | 15.57% per year |
| Total Profit when Sold: | $681,898.64 |
| Cash on Cash Return: | 193.17% |
| Purchase Capitalization Rate: | 11.14% |
| Total Rental Income: | $940,955.21 |
| Total Mortgage Payments: | $312,129.36 |
| Total Expenses: | $149,030.43 |
| Total Net Operating Income: | $791,924.78 |
First Year Income and Expense
| Monthly | Annual | |
|---|---|---|
| Income: | $12,000.00 | $144,000.00 |
| Mortgage Pay: | $2,601.08 | $31,212.94 |
| Vacancy (40%): | $4,800.00 | $57,600.00 |
| Management Fee (5%): | $360.00 | $4,320.00 |
| Property Tax: | $500.00 | $6,000.00 |
| Total Insurance: | $83.33 | $1,000.00 |
| Maintenance Cost: | $250.00 | $3,000.00 |
| Other Cost: | $250.00 | $3,000.00 |
| Cash Flow: | $3,155.59 | $37,867.06 |
| Net Operating Income (NOI): | $5,756.67 | $69,080.00 |
Breakdown Over Time
| Year | Annual Income | Mortgage | Expenses | Cash Flow | Cash on Cash Return | Equity Accumulated | If Sold at Year End | |
|---|---|---|---|---|---|---|---|---|
| Cash to Receive | Return (IRR) | |||||||
| Begin | -$353,000 | |||||||
| 1. | $82,080 | $31,213 | $13,000 | $37,867 | 10.73% | $347,279 | $304,328 | -3.06% |
| 2. | $84,542 | $31,213 | $13,390 | $39,939 | 11.31% | $372,450 | $328,211 | 7.63% |
| 3. | $87,079 | $31,213 | $13,792 | $42,074 | 11.92% | $398,552 | $352,986 | 11.28% |
| 4. | $89,691 | $31,213 | $14,205 | $44,273 | 12.54% | $425,627 | $378,693 | 13.03% |
| 5. | $92,382 | $31,213 | $14,632 | $46,537 | 13.18% | $453,719 | $405,377 | 14.02% |
| 6. | $95,153 | $31,213 | $15,071 | $48,870 | 13.84% | $482,873 | $433,081 | 14.63% |
| 7. | $98,008 | $31,213 | $15,523 | $51,272 | 14.52% | $513,140 | $461,854 | 15.02% |
| 8. | $100,948 | $31,213 | $15,988 | $53,747 | 15.23% | $544,570 | $491,746 | 15.28% |
| 9. | $103,976 | $31,213 | $16,468 | $56,296 | 15.95% | $577,219 | $522,810 | 15.45% |
| 10. | $107,096 | $31,213 | $16,962 | $614,024 | 16.69% | $611,145 | $555,103 | 15.57% |
| Total | $940,955 | $312,129 | $149,030 | $681,899 | 193.17% | |||