Rental Cash-Flow Pro-forma for Demo Property · West Fargo, ND

The property at Demo Property · West Fargo, ND, is projected to have a negative monthly cash flow of approximately $-253, resulting in an annual cash flow of $-3,037. This outcome is based on a purchase price of $300,000 and the specified financing terms, indicating that the gross potential rent of $28,417 does not cover the PITI plus reserves. The cap rate is calculated at 5.0%, and the cash-on-cash return is -3.6% on $84,000 invested.

• The projected monthly cash flow is negative at $-253, suggesting that the current income does not cover expenses and debt service.
• The 1% rule metric is 0.8%, which is below the 1% threshold, indicating a lower rent-to-price ratio.
• It would be beneficial to review the detailed operating expenses and income projections to understand the components contributing to the negative cash flow.

• highThe negative monthly cash flow of $-253 indicates that the property's income does not cover its expenses and debt service under the current assumptions.
• highThe cash-on-cash return of -3.6% suggests that the investment is not generating a positive return on the cash invested.
• highThe DSCR of 0.83x is below 1.0x, indicating that the Net Operating Income (NOI) is insufficient to cover the annual debt service.

Advisory read: The data suggests that you should carefully evaluate the income and expense projections, as well as the financing terms, to determine if adjustments are necessary to achieve your investment objectives.