Cash flow

CASHFLOW PROJECT
CASHFLOW RENTAL USING A HELOC TO PURCHASE

Purchase price: $717,000.00
Closing costs:     $15,340.00
Down payment from HELOC 20%: $143,400.00
Mortgage amount $588,940.00
HELOC payment per month: $385.00 ($15,340.00+$143,400.00)
Mortgage payment per month: $2,323.08
Gross taxes per month: $330.00
Property management: 10% but we have someone who will do it at 6% : $216.00
Rent upstairs: $2400.00
Rent downstairs: $1200.00
Total rent : $3600.00
Vacancy 5%: $175.00
Improvements 3%: $105.00
Total costs to carry per month:  $3,534.08
Cashflow $65.92 with 100% financing

After 12 years the Mortgage balance of $588,940.00 is $404,172.84 using the criteria above
After 12 years the rental cash flow of $3600.00 at a 2.2% increase per year is now $4,674.26

Cashflow per month after 12 years: $1074.26
Equity after 12 years: $184,767.16