Idaho Investment Property — Ada County
Rental Financial Model
Rick & Renée · Gianna, Jody & 3 children · Mukilteo, WA
Cash at close
Monthly rent
Annual rental tax
$0
Family gift
⚙ Inputs — tap to adjust
Home purchase price
$325,000
$275K$400K
Mortgage type
Interest rate
6.75%
5.50%8.50%
ARM fixed period
Fixed 7 yrs · then annual adjustments · 30-yr amortization
Jody gross annual income
$50,000 /yr
$35K$99K
Gianna childcare income
$600 /mo
$0$4,000/mo
Annual maintenance reserve
$2,400/yr ($200/mo)
$500/yr$6,000/yr
Roof · HVAC · water heater · appliances · paint. Baseline: $2,400–3,000/yr for a $300–350K home.
Your return on cash deployed
0.00% on down + closing
0% (break-even)5%
+$0/mo to rent
⚠ Below 4.08% AFR — OK in a rental structure; matters only if structured as a loan.
Capital gains — withdrawal
Cost basis (% of current value)
40% basis / 60% gain
10% (mostly gain)95%
Account type
Hold period
Down payment
💵 Upfront Cash & Monthly Rent
Purchase price
Down payment
Closing costs (3%)
Total cash deployed
Mortgage
Portfolio preserved
Monthly rent build-up
Mortgage P&I
Property taxes
Insurance
Maintenance reserve
Return on cash deployed
Required monthly rent
Your net cash flow$0 / mo
Mortgage details
Type
Rate
Term / amortization
📊 Affordability & Tax
Jody gross income
Est. take-home / mo
Childcare income
Total household / mo
Remaining after rent
Rent as % of income
0%30%50%75%+
Schedule E (annual)
Gross rental income
Less: mortgage interest
Less: tax + ins + depr
Less: maintenance
Return income
Net Schedule E
Annual rental tax$0
All-cash alt. tax
Annual tax savings
🏠 Buyout & True Cost
Sale price (original cost)
Mortgage balance remaining
Net proceeds to you
Original down payment
Equity built
True economic cost
Cash deployed at close
Net recovered at buyout
Depreciation recapture @25%
Net economic result
Family gift breakdown
Closing costs
Depreciation recapture
Total embedded gift
📈 Capital Gains — Yr 1 Tax
All-cash — full withdrawal
Amount withdrawn
Cost basis
Taxable gain / income
Federal tax
WA excise (7%)
Total Yr 1 tax (all-cash)
Mortgage — down + closing only
Amount withdrawn
Cost basis
Taxable gain / income
Federal tax
WA excise (7%)
Total Yr 1 tax (mortgage)
Savings — mortgage vs all-cash
Yr 1 withdrawal tax saved
Annual rental tax saved
Total saved over hold
Portfolio still earning on
💰 Savings to Purchase
Down payment % at purchase
10% down
5% (FHA)25%
Expected mortgage rate at buyout
7.00%
5.50%9.00%
Years to save / buyout
5 years
3 yrs7 yrs
Savings target
Purchase price
Down payment required
Closing costs (3%)
Total cash needed
Monthly savings required
Their mortgage at buyout
Loan amount
Interest rate
Monthly P&I
Taxes + insurance
Total monthly housing
Feasibility check
Household income / mo
Less: monthly savings
Remaining for living
Income to qualify (28%)
Housing affordability
Planning estimates only. Consult Idaho attorney, CPA (WA/ID multi-state), and financial advisor before proceeding. Maintenance reserve is a planning estimate — actual costs vary by property age and condition.