Scenario Selection
Selected Scenario Assumptions
New Property Details
New Property Monthly Income
New Property Monthly Expenses
Property Monthly Cash Flow
Note: UBTI treatment under IRC §514 (debt-financed property) is pending confirmation with tax counsel. The "once land is paid off" figures assume UBTI no longer applies after full payoff. Verify with your CPA before presenting these numbers as definitive.
Monthly Net Cash Flow
-$808
with debt & UBTI
Annual Net Cash Flow
-$9,696
with debt & UBTI
Monthly Cash Flow
once land is paid off
+$3,510
no debt, no UBTI
Annual Cash Flow
once land is paid off
+$42,120
no debt, no UBTI
Cash Flow Breakdown
| Category | Amount |
|---|---|
| Rental Income | $4,860 |
| Loan Payment | ($4,318) |
| Property Taxes | ($750) |
| Insurance | ($200) |
| Maintenance | ($400) |
| UBTI Tax (21% of net rental income) Est. — subject to tax counsel review |
($0) |
| Net Monthly Cash Flow | ($808) |
Key Insight: The property generates $4,860/month in rental income against total carrying costs of $5,668/month (loan, taxes, insurance, maintenance, UBTI), resulting in a net monthly cash flow of −$808/month.
Capital Roadmap
Four sequential capital raises from land closing through construction. Cash on hand = $350,000 fixed. Any down payment in excess of COH requires Capital Raise #1.
| # | Milestone | Description | Total Cost | COH Applied | Capital Raise | Cash Flow After |
|---|---|---|---|---|---|---|
| CR #1 | Land Closing | Down payment at close. Rental income begins immediately. COH covers first $385k. | $457,500 | $350,000 | $72,500 | −$256/mo |
| CR #2 | Land Entitlement | ETJ release, civil engineering, TCEQ WPAP, site plan approvals. Required before building permit. | ~$150,000 | — | ~$150,000 | −$256/mo |
| CR #3 | Land Payoff | Full payoff of remaining land loan. Eliminates debt service and UBTI. Property becomes net-positive asset and collateral for construction financing. | $457,500 | — | $457,500 | +$3,497/mo |
| CR #4 | Building Fund | $4.5M total construction. Church raises $3M; $1.5M via construction loan against land equity. Rental income supports construction debt service. | $4,500,000 | — | $3,250,000 | +$3,497/mo |
Capital Raise Composition — COH Coverage vs. Shortfall
Total capital to raise across CR#1–4: $3,680,000 | Plus $350,000 COH at closing | Plus $1.5M construction financing | Total project cost: $0
Net Monthly Cash Flow (Before Land Payoff)
Shows whether rental income covers all property carrying costs (loan, taxes, insurance, maintenance, UBTI) while debt is still outstanding. Slides left and red when negative, right and green when positive.
Total Interest Paid to Seller by Balloon Payoff Year
Monthly Loan Payment to Seller
$4,261
updates with selected scenario
Owner-financing only. Shows the annual interest paid to the seller in each of Years 1–5 for the selected scenario, on top of the purchase price. This is the seller's return for carrying the note through the 5-year balloon.