This document was used to present a real income property investing example as part of the Referral Partners Chapter of BNI.

1. Real Estate Investment Proposal
Prepared by: Phil Levy, Lic no 01850664
Investment
Opportunity
$84,968
Excluding Loan Fees
PALMDALE, CA
Single Family Residence, 1,546 Square Feet, 3/2
Generates approximately $5,000 in annual cash flow with a Cash on
Cash return of 13.6% with 71% financing and a cap rate of 11.5%.
Approximately $37,100 needed up front with 29% financing.
The above agent/brokerage makes no warranty or representation about
the content of this brochure. While the information displayed herein is
thought to be accurate, it is your responsibility to independently confirm
its accuracy and completeness. Any projections, opinions, assumptions or
estimates are used for example only and do not represent the current or
future performance of the property. The above agent/brokerage neither practices accounting
nor gives advice regarding tax benefits/liabilities or any other tax, accounting or financial
consideration, nor does the above agent/brokerage give advice regarding financial
investments. It is strongly recommended that you seek appropriate professional counsel
regarding your rights as a homeowner.
For Information Contact: Phil Levy, Lic # 01850664
Ph: 888.706.5384 8/1/2011 3:40 PM
phil@jpscvrealty.com Investment Package
www.jpscvrealty.com Page 1 of 3

2. Real Estate Investment Proposal
Prepared by: Phil Levy, Lic no 01850664
Investment
Financial Portrait
Property Specifications Investor Notes
• Positive Cash flow from
Address:
Property Type: Single Family Residence
operations and after financing
Year Built: 1984 • Convenient to shopping,
Beds: 3 schools, restaurants, hospital.
Baths: 2 • High distressed property area
SqFt: 1,546 has depressed prices.
Current List Price: $100,000
CDOM: 51 • Will require clean-up and
Offer Price: $70,500 upgrades to flooring, kitchen,
possibly repaint exterior
• Unusual gray exterior color
Downpayment: $16,000 • Needs appliances. Figures
Downpayment: $24,000
Annual Cash Flow: $2,267 Annual Cash Flow: in fix-up and
include $12,000 $3,019
Cash-on-Cash: 12.32% Cash-on-Cash: 11.44%
appliances. Subject to
inspection
• Crime rate – Palmdale was
slightly lower than national
average in 2009.
• Property is located in a nice
gated community.
Pro Forma (Monthly)
Estimated Monthly Rental Income: $1,500
Taxes: $118 Utilities & Trash: $55
Insurance: $33 Lawn Service: $45
HOA: $73 Maintenance: $100
Property Management: $140 Vacancy Reserve: $125
Estimated Operating Expenses: $688 Estimated Net Operating Income: $812
Monthly Vacancy Carry Cost: $1,128
Estimated Operating Expenses $564 Excluding Vacancy Reserve
Debt Service $392 With 71% Financing
Total Estimated Carrying Cost $1,128 Recommend 6 times cash reserves
The above agent/brokerage makes no warranty or representation about the
content of this brochure. While the information displayed herein is thought to
be accurate, it is your responsibility to independently confirm its accuracy and
completeness. Any projections, opinions, assumptions or estimates are used for
example only and do not represent the current or future performance of the
property. The above agent/brokerage neither practices accounting nor gives advice regarding tax
benefits/liabilities or any other tax, accounting or financial consideration, nor does the above
agent/brokerage give advice regarding financial investments. It is strongly recommended that you
seek appropriate professional counsel regarding your rights as a homeowner.
For Information Contact: Phil Levy, Lic # 01850664
Ph: 888.706.5384 8/1/2011 3:40 PM
phil@jpscvrealty.com Investment Package
www.jpscvrealty.com Page 2 of 3

3. Real Estate Investment Proposal
Prepared by: Phil Levy, Lic no 01850664
Investment
Optimization
5-Year Cumulative Cash-On-Cash Return
Year 1 Year 2 Year 3 Year 4 Year 5
20% 14.15% 28.29% 42.44% 56.58% 70.73%
25% 13.92% 27.83% 41.75% 55.66% 69.58%
29% 13.57% 27.13% 40.70% 54.27% 67.83%
100% 11.46% 22.93% 34.39% 45.85% 57.32%
Acquisition Costs versus Cash-on-Cash Return
Cash-on-
Down Acquisition Annual Cash
Payment Amount Cashflow Return
10% n/a n/a n/a
20% $30,708 $4,344 14.15%
25% $34,233 $4,764 13.92%
29% $37,108 $5,034 13.57%
100% $84,968 $9,740 11.46%
Finaning Assumptions:
Annual Interest Rate: Varies by pct financed
Term of Loan (in years): 15
Min Amount
Financed 50,000.00
The above agent/brokerage makes no warranty or representation about the
content of this brochure. While the information displayed herein is thought to
be accurate, it is your responsibility to independently confirm its accuracy and
completeness. Any projections, opinions, assumptions or estimates are used for
example only and do not represent the current or future performance of the
property. The above agent/brokerage neither practices accounting nor gives advice regarding tax
benefits/liabilities or any other tax, accounting or financial consideration, nor does the above
agent/brokerage give advice regarding financial investments. It is strongly recommended that you
seek appropriate professional counsel regarding your rights as a homeowner.
For Information Contact: Phil Levy, Lic # 01850664
Ph: 888.706.5384 8/1/2011 3:40 PM
phil@jpscvrealty.com Investment Package
www.jpscvrealty.com Page 3 of 3