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LOCATION OVERVIEW

$ 175,000

306 Meadow Way Cove Cordova TN 38018

Construction Type: New
Year Built: 1989
1878 sf 4 2
Homes located in this zip code are within close proximity to multiple retail centers, big box stores, and malls. They are also conveniently located next to the freeway and just minutes away from Shelby Farms Park, a 4,500 acre expanse with over 10 miles of urban trails. The park is a community treasure that just recently unveiled major improvements.

RETURN CALCULATOR

Perform your own sensitivity analysis by adjusting the parameters below to see how they can affect your return

Vacancy Rate (% GSI)
Maintenance Rate (% GOI)
Property Mgmt Rate (% GOI)
Property Appreciation Rate (%)
Rent Appreciation Rate (%)
Expense Inflation Rate (%)
Sales Cost Rate (% of Price)
Interest Rate (%)
PROPERTY INPUTS
Down Payment % Down Payment $ Est. Closing Costs Est. Total Investment Est. Monthly Rent Gross Annual Rent PM Fee Property Taxes Est. Property Insurance HOA Fees Maintenance Allowance Debt Service
20% $ 35,000 $ 4,286 $ 39,286 $ 1,450 $ 17,400 ($ 1,636) ($ 2,325) ($ 750) $ 0 ($ 1,044) $ 8,512
Economic Modeling Assumptions

Interest Rate: 4.5%

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Vacancy Rate (% GSI) 6% 6% 6% 6% 6% 6% 6% 6% 6% 6%
Maintenance Rate (% GOI) 6% 6% 6% 6% 6% 6% 6% 6% 6% 6%
Property Mgmt Rate (% GOI) 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
Property Appreciation Rate 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5%
Rent Appreciation Rate 3% 3% 3% 3% 3% 3% 3% 3% 3% 3%
Expense Inflation Rate 3% 3% 3% 3% 3% 3% 3% 3% 3% 3%
Sales Cost Rate (% of Price) N/AN/AN/AN/AN/AN/AN/AN/AN/A 9%
Cash Flow and Property Value Projections

Average Days Vacant Per Year/Per Home : 22

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Gross Annual Rent $ 17,400 $ 17,922 $ 18,460 $ 19,013 $ 19,584 $ 20,171 $ 20,777 $ 21,400 $ 22,042 $ 22,703
Vacancy Allowance ($ 1,044) ($ 1,075) ($ 1,108) ($ 1,141) ($ 1,175) ($ 1,210) ($ 1,247) ($ 1,284) ($ 1,323) ($ 1,362)
Property Management ($ 1,636) ($ 1,685) ($ 1,735) ($ 1,787) ($ 1,841) ($ 1,896) ($ 1,953) ($ 2,012) ($ 2,072) ($ 2,134)
Property Taxes ($ 2,325) ($ 2,395) ($ 2,467) ($ 2,541) ($ 2,617) ($ 2,695) ($ 2,776) ($ 2,859) ($ 2,945) ($ 3,034)
Est. Property Insurance ($ 750) ($ 772) ($ 796) ($ 820) ($ 844) ($ 869) ($ 896) ($ 922) ($ 950) ($ 979)
HOA Fees $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Maintenance Allowance ($ 981) ($ 1,011) ($ 1,041) ($ 1,072) ($ 1,105) ($ 1,138) ($ 1,172) ($ 1,207) ($ 1,243) ($ 1,280)
Debt Service ($ 8,512) ($ 8,512) ($ 8,512) ($ 8,512) ($ 8,512) ($ 8,512) ($ 8,512) ($ 8,512) ($ 8,512) ($ 8,512)
Before Tax Cash Flow $ 2,152 $ 2,472 $ 2,801 $ 3,141 $ 3,490 $ 3,850 $ 4,221 $ 4,603 $ 4,997 $ 5,402
Ending Property Value $ 181,125 $ 187,464 $ 194,026 $ 200,817 $ 207,845 $ 215,120 $ 222,649 $ 230,442 $ 238,507 $ 246,855
10- Year Cash Flows

Average Maint Expense Per Year/Per Home : ($ 570)

Initial Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Down Payment ($ 35,000)
Closing Costs ($ 4,286)
Annual Cash Flow $ 2,152 $ 2,472 $ 2,801 $ 3,141 $ 3,490 $ 3,850 $ 4,221 $ 4,603 $ 4,997 $ 5,402
Appreciation $ 71,855
Debt Paydown $ 27,875
Return of Down Payment $ 35,000
Sales Costs $ 22,217
Net Cash Flows ($ 39,286) $ 2,152 $ 2,472 $ 2,801 $ 3,141 $ 3,490 $ 3,850 $ 4,221 $ 4,603 $ 4,997 $ 117,914
TOTAL CF :

$ 37,128

AVG CF/YR :

$ 3,713

PROPERTY INPUTS
Down Payment % Down Payment $ Est. Closing Costs Est. Total Investment Est. Monthly Rent Gross Annual Rent PM Fee Property Taxes Est. Property Insurance HOA Fees Maintenance Allowance Debt Service
100% $ 175,000 $ 2,176 $ 177,176 $ 1,450 $ 17,400 ($ 1,636) ($ 2,325) ($ 750) $ 0 ($ 1,044) $ 0
Economic Modeling Assumptions

Interest Rate:4.5 %

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Vacancy Rate (% GSI) 6% 6% 6% 6% 6% 6% 6% 6% 6% 6%
Maintenance Rate (% GOI) 6% 6% 6% 6% 6% 6% 6% 6% 6% 6%
Property Mgmt Rate (% GOI) 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
Property Appreciation Rate 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5%
Rent Appreciation Rate 3% 3% 3% 3% 3% 3% 3% 3% 3% 3%
Expense Inflation Rate 3% 3% 3% 3% 3% 3% 3% 3% 3% 3%
Sales Cost Rate (% of Price) N/AN/AN/AN/AN/AN/AN/AN/AN/A 9%
Cash Flow and Property Value Projections

Average Days Vacant Per Year/Per Home : 22

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Gross Annual Rent $ 17,400 $ 17,922 $ 18,460 $ 19,013 $ 19,584 $ 20,171 $ 20,777 $ 21,400 $ 22,042 $ 22,703
Vacancy Allowance ($ 1,044) ($ 1,075) ($ 1,108) ($ 1,141) ($ 1,175) ($ 1,210) ($ 1,247) ($ 1,284) ($ 1,323) ($ 1,362)
Property Management ($ 1,636) ($ 1,685) ($ 1,735) ($ 1,787) ($ 1,841) ($ 1,896) ($ 1,953) ($ 2,012) ($ 2,072) ($ 2,134)
Property Taxes ($ 2,325) ($ 2,395) ($ 2,467) ($ 2,541) ($ 2,617) ($ 2,695) ($ 2,776) ($ 2,859) ($ 2,945) ($ 3,034)
Est. Property Insurance ($ 750) ($ 772) ($ 796) ($ 820) ($ 844) ($ 869) ($ 896) ($ 922) ($ 950) ($ 979)
HOA Fees $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Maintenance Allowance ($ 981) ($ 1,011) ($ 1,041) ($ 1,072) ($ 1,105) ($ 1,138) ($ 1,172) ($ 1,207) ($ 1,243) ($ 1,280)
Debt Service $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Before Tax Cash Flow $ 10,664 $ 10,984 $ 11,313 $ 11,653 $ 12,002 $ 12,363 $ 12,733 $ 13,115 $ 13,509 $ 13,914
Ending Property Value $ 181,125 $ 187,464 $ 194,026 $ 200,817 $ 207,845 $ 215,120 $ 222,649 $ 230,442 $ 238,507 $ 246,855
10- Year Cash Flows

Average Maint Expense Per Year/Per Home : ($ 570)

Initial Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Down Payment ($ 175,000)
Closing Costs ($ 2,176)
Annual Cash Flow $ 10,664 $ 10,984 $ 11,313 $ 11,653 $ 12,002 $ 12,363 $ 12,733 $ 13,115 $ 13,509 $ 13,914
Appreciation $ 71,855
Debt Paydown $ 0
Return of Down Payment $ 175,000
Sales Costs $ 22,217
Net Cash Flows ($ 177,176) $ 10,664 $ 10,984 $ 11,313 $ 11,653 $ 12,002 $ 12,363 $ 12,733 $ 13,115 $ 13,509 $ 238,552
TOTAL CF :

$ 122,251

AVG CF/YR :

$ 12,225

DISCLAIMER: The calculations and data presented herein are deemed to be accurate, but accuracy is not guaranteed. The projected pro forma returns on investment are intended for the purpose of illustrative projections to facilitate analysis and are not guaranteed by Meridian Pacific Properties, Inc. or its affiliates and subsidiaries. The information provided herein is not intended to replace or serve as a substitute for any legal, real estate, tax, or other professional advice, consultation or service. The prospective buyer should consult with a professional in the respective legal, tax, accounting, real estate, or other professional area before making any decisions or entering into any contracts pertaining to the property or properties described herein.