Hi Mom!

Three owners and one renter in a $645K house at the rates quoted by Regan on 8/17
               
Property price: $ 645,000            
House value: $ 350,000   Owners: 3      
Down payment: 10%   Renters: 1      
Down payment: $ 64,500            
Down payment, each: $ 21,500   Depreciation: $ 12,740   Appraisal fee: $ 300
      Renter portion: $ 3,185      
First mortgage: $ 516,000   Monthly renter portion: $ 265   Credit reports (each): $ 60
Interest rate: 7.500% 7/1 ARM       Credit reports: $ 180
Interest payment: $ 3,225   Break-even rent: $ 863      
Principal: $ 387   Actual rent per person: $ 720   Points: 1%
Total: $ 3,612   Total rent income: $ 720   Broker commission: $ 5,805
      Losses: $ 482   Tax service fee: $ 79
Second mortgage: $ 64,500   Net: $ 238   Processing fee: $ 350
Interest rate: 10% 30/15       Underwriting fee: $ 495
Interest payment: $ 538   Monthly payment: $ 5,047   Wire transfer fee: $ 50
Principal: $ 32   Owner payment: $ 1,682      
Total: $ 570   Minus rent: $ 1,442   Hazard duration: $ 6
      Deductable amount: $ 1,478   Hazard rate: $ 100
Total interest: $ 3,763   Marginal tax rate: 36%   Hazard insurance: $ 600
Total principal: $ 419   "Real" cost: $ 1,150      
Total mortgage: $ 4,182   Including rent: $ 910   Escrow fee: $ 800
      Including equity: $ 781   Document prep: $ 50
Tax rate: 1.25%         Notary fee: $ 40
Annual tax: $ 8,063         Title insurance: $ 1,850
Monthly tax: $ 672   Sub renters for owners:        
Renter portion: $ 168   Owner payment: $ 1,262   Recording fees: $ 50
      Deductable amount: $ 1,109      
Annual insurance: $ 2,322   Equivalent "real" cost: $ 863   First year's insurance: $ 2,300
Monthly insurance: $ 194            
Renter portion: $ 48            
               
Maintenance, each: $ 50         Closing costs: $ 12,949
Maintenance, total: $ 150         Closing costs, each: $ 4,316
            Closing cost %: 2.01%
Insurance + taxes, ea: $ 288            
            Closing + down, each: $ 25,816

Last Updated on 4/8/98
By Mark Maxham
Email: [email protected]