Profitability worksheet

Profitability worksheet

I have been working on completing my first deal, I've had two accepted offers but niether went to closing. This house would be offered to a buyer on a lease option. Wanted to run my profitablity buy you all to see if you think it's a good deal, the purchase price includes rehab and holding costs for 3months. I was hoping to get the prop for less, because I can't refi at 75-80% LTV and get all my money back, so I can get the next deal. In todays market I'm only appreciating 1% per year, should it be more? I am planning on doing a 36 month lease, maybe a little less depending on the time of year. Total profit after 3years if they can close is $77400. All advice is welcome!!!!


Profitability Worksheet:

Option 1
Current Value $155,000

Purchase Price $135,000

Lease Option Premium $7,750 5% Usually 5 - 10 %
Current Appreciation $4,650 1% per year
Months in Buyer's Lease 36 months
Subtotal $12,400

Sale Price $167,400 = Current Value + Subtotal

Sale - Purchase $32,400

$1,350 Rent you charge buyer
$- Rent you pay seller
$1,350 Monthly Cash Flow
Cash Flow $48,600 Total Cash Flow

Option Credits- Seller $- Monthly Credit You GET
$- Your Credits
Option Credits Buyer $100 Monthly Credit You GIVE
$3,600 Buyers Credits
Total Profit of Deal $77,400

Option Fee from Buyer $2,500
Option Fee to Realtor $- 0% % of Purchase Price
Difference $2,500 Your Upfront Money Total

Months in Seller's Lease 36 months
Money Paid to Seller $- for all months in contract


Cathy B

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