Remapping our Transformations

After Eliminating what we can, and accounting for what we can not, we've now been able to address a large portion of what all is anticipated to happening over the life of a co-owned home. What this does differently is the following:

• Most of our Startup Costs before now are factored in as a Rollover Account

• Costs of Business are the same for routine scheduled expenses, but for any unexpected incidents there are, they are now accounted for in a Fixed Account

• Exit Costs are largely eliminated by removal of Counterparty Risk and Redundant Buying Power and are delayed until final sale point

But let's go ahead and break these down pillar by pillar and item by item.

Startup Costs

Expense Item	Calculation	Amount ($)	Reclassification
Home Inspection	Estimated	$500	Rollover Account
Appraisal Fee	Estimated	$600	Rollover Account
Title Insurance & Search	Estimated	$2,000	Rollover Account
Loan Origination Fee (1%)	$475,000 x 1%	$4,750	Rollover Account
Legal Fees (Attorney)	Estimated	$1,500
Permit & Licensing Fees	Estimated	$500	Rollover Account
Transfer Tax (0.75%)	$500,000 x .75%	$3750
Intangible Tax (0.2%)	$475,000 x .2%	$950	Rollover Account
Prorated Property Taxes	6,250 ÷ 12 × 3 (3 months)	$1,563	Rollover Account
Prepaid Interest	($475,000 × 6%) ÷ 12 × 15 days	$1187
Homeowners Insurance Premium	Estimated	$1800	Rollover Account?
Total Startup Costs	Sum	$19,100

Costs of Doing Business

Expense Item	Calculation	Monthly ($)
Mortgage Payment (P+I)	$475,000 loan @ 6% for 30 years	$2,848
Down Payment Opportunity Cost (5yr est)	$25,000 x (1.07)^5 - $25,000	$10,063
Property Taxes	1.25% of $500K / 12	$521
Private Mortgage Insurance (PMI)	0.5% of $475K / 12	$198
Maintenance & Repairs	1% of $500K / 12	$417
HOA Fees (if applicable)	Estimated	$100
Homeowners Insurance	Estimated	$150
Landscaping	Estimated	$50
Pest Control	Estimated	$33

Exit Costs

Income Sources

TODO Map Costs to their new category aka loan origination -> rollover account