20% payment to avoid PMI Cost Loan Equity 227,000 $ 227,000 181,600 80% 192,950 85% 45,400 34,050 Rental Income 3,500 3,500 Interest Rate 7.7% 7.7% Period of Loan/ Year 30 30 Period of Loan/ Month 360 360 PMI Amortization/Year (15,537) (16,508) (482) Amortization/Month (1,295) (1,376) (40) Annual Rent 27,405 27,405 Cashflow w/ 30% OpEx 19,184 19,184 Annual Cost of Financing (15,537) (16,990) Cashflow after financing cost: 3,647 2,193 ROA 8.45% 8.45% Cost of Financing 8.56% 8.81% Cash on Cash Return 8.03% 6.44%