●  RENT VS. OWN  COMPARISON ●
NASHVILLE/COOL SPRINGS, TENNESSEE
Sample property size: 2,020 Square Feet,  Unit 130					"Click here to see sample floor plans"
● RENT ●					● OWN ●
LEASE ASSUMPTIONS:					PURCHASE ASSUMPTIONS:
Rent Per Square Foot Per Month			$2
Rent Per Month (Total)			$3,619		Purchase Price			$404,000
START UP COSTS:					START UP COSTS:
Prepaid Rent and Security Deposit			$7,238		Cash Down Payment			$40,400
					Loan Fees and Costs			$3,272
Total Start Up Costs			$7,238		Total Start Up Costs			$43,272
MONTHLY COSTS:		Per Sq Ft	Amount		MONTHLY COSTS:		Per Sq Ft	Amount
Rent Payment		$1.79	$3,619		Mortgage Payment		$2.50	$3,744
NNN Operating Costs		$0.20	$404		Operating Costs		$0.10	$2,424
Total Monthly Costs:		$1.99	$4,023		Total Monthly Costs		$3.05	$6,168
MONTHLY OWNERSHIP BENEFITS:					MONTHLY OWNERSHIP BENEFITS:
Annual Appreciation: at 2%			$0		Annual Appreciation: at 2%			$673
Annual Depreciation: at 40% Tax Bracket			$0		Annual Depreciation: at 40% Tax Bracket			$1,145
Average Monthly Principal Payment			$0		Average Monthly Principal Payment			$700
Total Ownership Benefits			$0		Total Ownership Benefits			$2,518
TOTAL EFFECTIVE MONTHLY COST:			$4,023		TOTAL EFFECTIVE MONTHLY COST:			$3,650
Important Notes:
● The Rent amount shown above is for the starting year. Most leases provide for rent increases of about
3% per year. After 10 years, the mortgage payment would remain the same,  but the rent would
increase by 34%. Calculations based upon the prevailing interest rates as of May 2007 ●