Difference between revisions of "The Omni/Cost Estimate"

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(Added the total cost analysis & breakdown)
 
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Source: You can look up the tax history [https://www.acgov.org/propertytax/history.htm here] using the parcel number.
Source: You can look up the tax history [https://www.acgov.org/propertytax/history.htm here] using the parcel number.


== Mortgage ==
= Mortgage =


Using [http://www.mortgagecalculator.org/ this calculator], with $1.9 million as the property value, credit rating "good", loan amount $1.52 million (indicating a 20% down payment), a 5% fixed interest rate and a loan term of 30 years, the monthly payment is $10,440. If we change it to a mortgage rate of 4.125% (seems more realistic. found via [http://www.zillow.com/mortgage-rates/ca/oakland/ zillow]) then the monthly payment is $9,647. These payments include the 1.4403% property tax.
Using [http://www.mortgagecalculator.org/ this calculator], with $1.9 million as the property value, credit rating "good", loan amount $1.52 million (indicating a 20% down payment), a 5% fixed interest rate and a loan term of 30 years, the monthly payment is $10,440. If we change it to a mortgage rate of 4.125% (seems more realistic. found via [http://www.zillow.com/mortgage-rates/ca/oakland/ zillow]) then the monthly payment is $9,647. These payments include the 1.4403% property tax.
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== Paying off down-payment ==
== Paying off down-payment ==


The down-payment of $380,000 will be paid by certain moneyed invididuals. This may be in the form of a loan or an investment. Either way they will probably have to be paid back with some return on their loan/investment, since the community probably wants full ownership of the property in the long term.
The down-payment of $380,000 will be paid by certain moneyed individuals. This may be in the form of a loan or an investment. Either way they will probably have to be paid back with some return on their loan/investment, since the community probably wants full ownership of the property in the long term.


Let's assume that the return for these lenders/investors is a reasonable 5% annual percentage rate.  
Let's assume that the return for these lenders/investors is a reasonable 5% annual percentage rate.  
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*4.125% mortgage, down-payment at 5% over 20 years: $12,375 per month
*4.125% mortgage, down-payment at 5% over 20 years: $12,375 per month


== Renting ==
= Renting =


If we rent, then the rent is $13,000 a month triple-net.
If we rent, then the rent is $13,000 a month triple-net.
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We also need liability insurance, but it is probably enough for each individual group to get liability insurance that suits their needs, and it will vary based on the group's activities.
We also need liability insurance, but it is probably enough for each individual group to get liability insurance that suits their needs, and it will vary based on the group's activities.


== Utilities ==
= Utilities =


On top of mortgage payments come utilities. I have no idea what they'd be, but let's assume $2,000 for no good reason.
On top of mortgage payments come utilities. I have no idea what they'd be, but let's assume $2,000 for no good reason.
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*Renting with $50,000 deposit: ~$17,433
*Renting with $50,000 deposit: ~$17,433


== Renovations and requirements ==
= Renovations and requirements =


What needs to be done / fixed up in order for the building to become safe for our purposes? Here are a list of possibles:
What needs to be done / fixed up in order for the building to become safe for our purposes? Here are a list of possibles:
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More research is needed.
More research is needed.


== Total monthly expense ==
= Total monthly expense =


If we haven't missed any big expenses in these calculations, and assuming we need no improvements/renovations (doubtful) then the total monthly expense will be around $15,000 per month if we buy or $17,000 a month if we lease. This may be a somewhat high estimate. If the insurance is truly only $500 a month and the utilities are only $1,500 a month, then we're down to $14,000 or $16,000 a month.
If we haven't missed any big expenses in these calculations, and assuming we need no improvements/renovations (doubtful) then the total monthly expense will be around $15,000 per month if we buy or $17,000 a month if we lease. This may be a somewhat high estimate. If the insurance is truly only $500 a month and the utilities are only $1,500 a month, then we're down to $14,000 or $16,000 a month.
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