Underwriting worksheet — No. 03

Seller finance note modeler

One deal, four creative structures, priced side by side — interest only, standard seller finance, a wrap or subject-to, and a lease option. Change a term and the ranking moves with it.

Basis of estimate: Same deal, four structures, terms as entered
Leading measure: Cash-on-cash on the best structure
Prepared by: Aldo Chandra, Philadelphia PA

Best cash-on-cash

Year one, on cash invested

Supporting measureBest of four

Best monthly cash flow --

Lowest total interestPaid from close to the balloon month --

Schedule of assumptions

Adjust any line; every figure on this page restates immediately.

Property and income

Line itemAssumption

Purchase price $

Down payment $

This is the cash actually in the deal, and the denominator under every cash-on-cash figure.

Monthly rental income $

Monthly expenses $

Taxes, insurance, management, vacancy and reserves — everything except the note payment.

Financing terms

Line itemAssumption

Seller finance rate %

Existing mortgage balance $

Used by the wrap or subject-to structure to show the seller's rate spread.

Existing mortgage rate %

Ranking basis

Choose the measure the table sorts on.

Cash-on-cash divides year-one cash flow by the cash you put in. Cash flow ranks on the monthly number alone. Total cost ranks on the least interest paid between close and the balloon.

Structures on the table

StructureHorizon

Interest onlyInterest-only payments, balloon at term 36 mo

Lease optionOption premium above rent, price locked 36 mo

Standard seller finance30-year amortization, balloon at term 60 mo

Wrap or subject-toExisting loan stays, the new note wraps it 60 mo

Every structure, ranked

Open the amortization on any column to see the first twelve months and the balloon month.

Estimates for planning only. Payments, balloons, and returns depend on the note you actually sign, real vacancy and repair costs, and whether the existing lender allows a transfer. This is not tax, legal, or investment advice — run any structure past your attorney and CPA before you commit.

← All tools