Rental Break-Even Playground

1334 S Carmelina #1 · 2/2 · 841sf
Acquisition
Purchase Price$495,000
Closing Costs2.5%
Financing
Mortgage Rate7.00%
Bathroom Remodel (Upfront)
Primary Bath$30,000
Guest Bath$22,000
Rental Income
Market Rent$3,600/mo
Annual Rent Growth3.0%
Operating Expenses
HOA$300/mo
Property Tax1.25%
Insurance$100/mo
Maintenance Reserve3.0% of rent
Vacancy Reserve5% of rent
Property Management0% (self)
Sign in
Total Upfront
$559,375
all-cash purchase + reno
Monthly Cash Flow
+$2,396
after all expenses
Break-Even
14y 9m
month 177 (cash flow only)
Cap Rate
5.14%
on total cost basis
Cost & Income Breakdown
Purchase price$495,000
Closing costs$12,375
Primary bath remodel$30,000
Guest bath remodel$22,000
Total Upfront Cost$559,375
Gross monthly rent$3,600
− HOA$300
− Property tax$516
− Insurance$100
− Maintenance$108
− Vacancy$180
− Property mgmt$0
− Mortgage P&I$0 (cash)
Net Monthly Cash Flow+$2,396
Month-by-Month Cumulative Position
Cash flow only
Break-even hit
MonthRentExpensesNet CFCumulative CFPosition vs Upfront
Month 1$3,600$1,204+$2,396$2,396−$556,979
Month 2$3,600$1,204+$2,396$4,793−$554,582
Month 3$3,600$1,204+$2,396$7,189−$552,186
Month 4$3,600$1,204+$2,396$9,586−$549,789
Month 5$3,600$1,204+$2,396$11,982−$547,393
Month 6$3,600$1,204+$2,396$14,378−$544,997
Month 7$3,600$1,204+$2,396$16,775−$542,600
Month 8$3,600$1,204+$2,396$19,171−$540,204
Month 9$3,600$1,204+$2,396$21,567−$537,808
Month 10$3,600$1,204+$2,396$23,964−$535,411
Month 11$3,600$1,204+$2,396$26,360−$533,015
Mo 12 (Yr 1)$3,600$1,204+$2,396$28,757−$530,618
Mo 24 (Yr 2)$3,708$1,212+$2,496$58,705−$500,670
Mo 36 (Yr 3)$3,819$1,221+$2,598$89,882−$469,493
Mo 48 (Yr 4)$3,934$1,230+$2,703$122,324−$437,051
Mo 60 (Yr 5)$4,052$1,240+$2,812$156,069−$403,306
Mo 72 (Yr 6)$4,173$1,249+$2,924$191,155−$368,220
Mo 84 (Yr 7)$4,299$1,260+$3,039$227,624−$331,751
Mo 96 (Yr 8)$4,428$1,270+$3,158$265,517−$293,858
Mo 108 (Yr 9)$4,560$1,280+$3,280$304,876−$254,499
Mo 120 (Yr 10)$4,697$1,291+$3,406$345,745−$213,630
Mo 132 (Yr 11)$4,838$1,303+$3,535$388,171−$171,204
Mo 144 (Yr 12)$4,983$1,314+$3,669$432,198−$127,177
Mo 156 (Yr 13)$5,133$1,326+$3,806$477,876−$81,499
Mo 168 (Yr 14)$5,287$1,339+$3,948$525,254−$34,121
Month 175$5,445$1,351+$4,094$553,912−$5,463
Month 176$5,445$1,351+$4,094$558,006−$1,369
Month 177$5,445$1,351+$4,094$562,101+$2,726
Month 178$5,445$1,351+$4,094$566,195+$6,820
Month 179$5,445$1,351+$4,094$570,289+$10,914
Mo 180 (Yr 15)$5,445$1,351+$4,094$574,383+$15,008
Generated Investment Brief
I'm modeling the rental hold scenario for 1334 S Carmelina Ave #1, a 2BR/2BA 841 sqft condo in West LA (90025). Purchase: $495,000 all cash, plus $12,375 closing and a 2-bathroom remodel ($30,000 primary + $22,000 guest = $52,000). Total upfront cash: $559,375. Rent assumption: $3,600/mo with 3% annual growth. Operating expenses run ~$1,204/mo (HOA, tax, insurance, 3% maintenance, 5% vacancy, self-managed). Net cash flow: +$2,396/mo, cap rate 5.14%. Break-even on upfront cash: month 177 (~14.8 years) from rental cash flow alone, not counting appreciation or principal paydown. Sanity-check my assumptions on rent, expenses, and break-even timeline. What am I missing?