Construction and Home Rehabilitation Company | Financial Analysis
FINANCIAL ANALYSIS
Base Home
Financials begin with the analysis of a prospective home. An amortization schedule has been created based on an interest rate of 6.75%. 41558 Sunshine Dr. is a single–family 2–bedroom 1–bath home that will be acquired for $35,000. A bid has been made for repairs that total $14,401. Repair costs include labor, which will be absorbed over the course of the rehab. The value after repairs is $49,401. The final loan amount will be $44,461 after the 10% down payment of $4,940.
Repairs will be completed and the home will be sold within six months. During those six months Gary and Bob will be staying at the property in order to cut costs. Rehabilitated comparables to 41558 Sunshine Dr. are selling for $75,000–$80,000. Selling price of our property is $77,500. The profit after taxes will be $17,642.06. This includes $12,000 earned doing outside contracting work. Sunk costs, which will be avoided hereafter, include legal...
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