3116 Kings Way This is a unique situation. The seller would like to discuss all creative options. The home is going to need substantial renovation. Property taxes 4%-6% Insurance 2%-4% Utilities (if owner-paid) 10%-15% Repairs & maintenance reserve 5%-10% Vacancy & credit loss 5%-10% Landscaping/pest control 1%-3% Capital reserves (future HVAC, roof, appliances, etc.) 5%-10% Total (self-managed) 25%-40% Gross Potential Income 5 bedrooms + studio = $6, 500/month Annual = $78, 000 Adjust for 90% occupancy Effective Gross Income = about $70, 200/year Example expense budget (30%) Expenses $21, 000/year Net Operating Income Approximately $49, 000/year Using common investor cap rates: Cap Rate Value 10% $490, 000 8% $612, 000 A one-third interest before any minority discount would be approximately: $163, 000 at a $490k valuation