Cast-iron condominium, 1883
The Franklin Loft
3.0% a year over 10 years (-1.0% after tax), with $12,277 a month to carry from year one.
Confidence: HighNet yield2.6%
Year-one rent after 1 month vacant, less taxes, charges, insurance, management and upkeep, divided by the price.
Cash on cash-10.4%
Year-one cash after the mortgage, divided by the $1,412,056 you put in (deposit plus $199,556 of buying costs).
IRR, 10 years3.0%
The annual return that equates your cash in with every year's cash flow and the sale proceeds after 6.5% selling costs. Values grow 3.6% a year.
IRR after tax-1.0%
Rental profit taxed at 45% after interest and depreciation; the gain at sale at 33%, including recapture. General illustration, not tax advice.
Total return48%
Every dollar of cash flow plus the net sale, less what you put in, as a share of what you put in.
Break-even rent$33,901/mo
The monthly rent at which year one covers the mortgage ($22,634/mo at 6.35%) and every running cost.
Year by year
| Year | Rent | Net operating income | Mortgage | Cash flow | Value | Loan |
|---|---|---|---|---|---|---|
| 1 | $214,500 | $124,285 | $271,606 | −$147,321 | $5,024,600 | $3,595,672 |
| 2 | $220,935 | $128,014 | $271,606 | −$143,592 | $5,205,486 | $3,551,109 |
| 3 | $227,563 | $131,854 | $271,606 | −$139,752 | $5,392,883 | $3,503,633 |
| 4 | $234,390 | $135,810 | $271,606 | −$135,796 | $5,587,027 | $3,453,052 |
| 5 | $241,422 | $139,884 | $271,606 | −$131,722 | $5,788,160 | $3,399,165 |
| 6 | $248,664 | $144,080 | $271,606 | −$127,526 | $5,996,534 | $3,341,754 |
| 7 | $256,124 | $148,403 | $271,606 | −$123,203 | $6,212,409 | $3,280,590 |
| 8 | $263,808 | $152,855 | $271,606 | −$118,751 | $6,436,056 | $3,215,426 |
| 9 | $271,722 | $157,441 | $271,606 | −$114,165 | $6,667,754 | $3,146,003 |
| 10 | $279,874 | $162,164 | $271,606 | −$109,442 | $6,907,793 | $3,072,040 |