You have $200,000 to fully leverage to invest in Washington state Real Estate.

You need to invest at least $190,000 of the money to purchase real estate.

Which existing property(ies) on the market would you investment in to achieve the greatest cash flow?

Purchases are made based on listed price minus 5% (Use prices from Zillow.com or Relator.com)

Your $200,000 needs to cover for each property Cash needed 15% down payment Appraisal - $300 per property Credit report/insurances/various fees 2% of purchase price Inspection - $300 per property Real estate Brokers commission 2% of purchase price

Expenses Vacancy rate 3% Mortgage todays rate Expense 40% of gross rent

Income The first years rent is based on existing rental value listed on Zillow or Relator

Provide:

For each property Description Property description Address, # of units, type of units Listed price Purchase price Cash needed: Down payment Appraisal cost Inspection cost Credit report/insurances/various fees Real estate Brokers commission Total cash Expenses: Expected income per unit Gross potential monthly income for property Net monthly income before mortgage payment Mortgage payment - (use todays best rate for 30 year loan) Net Monthly income after mortgage payment Yearly income Total Cash Flow List each property: Purchase Price List each property: Total Yearly Income

Total yearly income for all properties

Sample property: 2028 Chestnut St, Everett

List: $445,000

Rent estimate: $1,500/month/unit

Description Property description: 2028 Chestnut St, Everett, 2 units: 3bed/2bath each Listed price: $445,000 Purchase price (5% off list): ($445,000 *.95) = $422,750

Cash needed: Down payment (15% of purchase price): ($422,750 * .15) = $63,412.50 Appraisal cost - $300 Inspection - $300 Credit report/insurances/various fees (2% of purchase price): ($422,750 * .02) = $8,455 Real estate Brokers commission (2% of purchase price): ($422,750 * .02) = $8,455

Total cash: $80,922.50

Total cash available: $200,000

Cash left after this sale: $200,000 $80,922.50 = $119,077.50

Expenses Expected income per unit: $1,500 Gross potential monthly income for property: $3,000 Net monthly income = (all income ($3,000) - operating expenses ($3,000 * .40) - vacancy rate ($3,000 * .03) = $1,719 Loan: Purchase price ($422,750) down payment ($63,412.50) = $359,337.50 Mortgage: 30 yr @ 3.38% = $1,590 (use todays best rate) Net Monthly income after mortgage payment =$1,719 - $1,590 = $129 First year income = $129 * 12 = $1,548