Maine Real Estate - Point Sebago Resort Ownership

Windham Model

Down Payment	20%	10%

Sales Price	$209,900	$209,900
Down Payment (20%, 10%)	$41,980	$20,990
Amount Financed	$167,920	$188,910
Monthly Payment	$1,061	$1,194

Rental Income (Net)	$7,500	$7,500

Expenses
Interest Expense (1)	$10,860	$12,217
Real Estate Taxes	$2,000	$2,000
Insurance	$500	$500
Utilities	$1,500	$1,500
Annual Association Dues	$1,200	$1,200
Maintenance	$200	$200
Total Out of Pocket Expense	$16,260	$17,617

Depreciation Expense (2)	$5,670	$5,670
Total Expenses with Depreciation	$21,930	$23,287
Net Gain (Loss)	-$14,430	-$15,787

Tax Savings From Net Loss (3)	$3,900	$4,736
Cash from Rental Income	$7,500	$7,500

Net Cash From Rental Activity	$11,400	$12,236

Out of Pocket Cost Per year	-$4,860	-$5,381

Notes
(1) 30 year fixed @ 6.50% with 20% down (column 1) or 10% down (column 2).
(2) Straight line @ 3.6% per year. Assumes building value of $157,500
(3) Assumes marginal tax rate of 30%.
(4) Assumes 100% rental use. Personal use will impact the amount that can
be deducted for rental use.

*** Please check with your tax advisor for details on your specific tax situation. ***

*** For illustration purposes only. Rental income amounts may be more or less than the amount shown in this example.

*** Out of pocket annual cost does not include principle portion of monthly payments