Would this be a good house to purchase to rent? Assume no additional expenses needed to have it ready to rent. 3. Assumptions: .You will finance the property with a loan. You want a DCR of 1.1 Loan terms: 6% fixed for 120 months o o . Gross rents will be $15,000 and net operating income will be $9,000. N 01 will increase at 3% per year for 3 years, followed by a terminal growth rate of 1%. You may keep the property indefinitely or sell at the end of 4 years. How much do you project you could sell the house for at the end of 4 years? How much would you finance? How much would you pay up front (down payment)? What price would you pay for the house today? Based on your answers, would this be a good house to purchase to rent? 4OLER NATIONAL BANK Loan Estimate DATE ISSUED 4/11/2019 timate to compare with your Closing Disclowre LOAN TERM 5 years PURPOSE Resale PRODUCT Fixed Rate LOAN TYPE Conventional APPLICANT FN 418 Real Estate Co 58 120 University Heights, OH 44118 14181 Washington Blvd University Heights, OH 44118 $80,000 RATE LOCK Yes, until 05/01/2019 PROPERTY SALE PRICE Loan T Can this amount increase after closing? Loan Amount 564,000 NO NO NO Interest Rate 6.00% Monthly Principal& Interest $320.00 s the loan have these features? Prepayment Penalty NO Balloon Payment YES rojected Payments Payment Calculation Principal & Interest Mortgage Insurance Estimated Escrow Amount con increase over time Estimated Total Monthly Payment $320.00 $0.00 $460.00 $780.00 This estimate includes Estimated Taxes, Insurance & Assessments Amount can increase over time In escrow? Yes Yes $460 a month Property Taxes Homeowner's Insurance osts at Closing Estimated Closing Costs Estimated Cash to Close $5,000 Includes $3,500 in Loan Costs+$1,500 in Other Costs $21,000 Includes Closing Costs LOAN ESTIMATE Estimate: 1001 Date: BOLER RENOVATION COMPANY 4/11/2019 Customer: FN 418 Real Estate Co. SB 120 University Heights, OH 44118 WORK ESTIMATE Furnace service and repair Replacement of CPVC waterlines and bathtub drain in the basement to the stack TOTAL $ 300.00 1,200.00 6,000.00 $ 1,500.00 $ 1,100.00 10,100.0o Tear off and replacement of roof Interior painting of entire house Tear out and replacement of carpet in three bedrooms (13 x 10), (12 x 14), (13 x 11) TOTAL Estimate valid for 30 days Would this be a good house to purchase to rent? Assume no additional expenses needed to have it ready to rent. 3. Assumptions: .You will finance the property with a loan. You want a DCR of 1.1 Loan terms: 6% fixed for 120 months o o . Gross rents will be $15,000 and net operating income will be $9,000. N 01 will increase at 3% per year for 3 years, followed by a terminal growth rate of 1%. You may keep the property indefinitely or sell at the end of 4 years. How much do you project you could sell the house for at the end of 4 years? How much would you finance? How much would you pay up front (down payment)? What price would you pay for the house today? Based on your answers, would this be a good house to purchase to rent? 4OLER NATIONAL BANK Loan Estimate DATE ISSUED 4/11/2019 timate to compare with your Closing Disclowre LOAN TERM 5 years PURPOSE Resale PRODUCT Fixed Rate LOAN TYPE Conventional APPLICANT FN 418 Real Estate Co 58 120 University Heights, OH 44118 14181 Washington Blvd University Heights, OH 44118 $80,000 RATE LOCK Yes, until 05/01/2019 PROPERTY SALE PRICE Loan T Can this amount increase after closing? Loan Amount 564,000 NO NO NO Interest Rate 6.00% Monthly Principal& Interest $320.00 s the loan have these features? Prepayment Penalty NO Balloon Payment YES rojected Payments Payment Calculation Principal & Interest Mortgage Insurance Estimated Escrow Amount con increase over time Estimated Total Monthly Payment $320.00 $0.00 $460.00 $780.00 This estimate includes Estimated Taxes, Insurance & Assessments Amount can increase over time In escrow? Yes Yes $460 a month Property Taxes Homeowner's Insurance osts at Closing Estimated Closing Costs Estimated Cash to Close $5,000 Includes $3,500 in Loan Costs+$1,500 in Other Costs $21,000 Includes Closing Costs LOAN ESTIMATE Estimate: 1001 Date: BOLER RENOVATION COMPANY 4/11/2019 Customer: FN 418 Real Estate Co. SB 120 University Heights, OH 44118 WORK ESTIMATE Furnace service and repair Replacement of CPVC waterlines and bathtub drain in the basement to the stack TOTAL $ 300.00 1,200.00 6,000.00 $ 1,500.00 $ 1,100.00 10,100.0o Tear off and replacement of roof Interior painting of entire house Tear out and replacement of carpet in three bedrooms (13 x 10), (12 x 14), (13 x 11) TOTAL Estimate valid for 30 days