⚙ Inputs — tap to adjust
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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
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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
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Jody gross income
Est. take-home / mo
Childcare income
Total household / mo
Remaining after rent
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
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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
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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Amount withdrawn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Amount withdrawn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
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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.