10045 Springfield Pike, Woodlawn OH 45215

10045 Springfield Pike, Woodlawn, OH 45215

Commercial: , 7 bathrooms

Year built: 1962, Size: 9610 SF

Investment strategy: Rental Property

Purchase Price$ 1,100,000

Rent$ 9,450/mo

Monthly Cash Flow$ 41

Cash on Cash Return0.17 %

Financial Analysis

Cash on Cash Return	0.17 %
Internal Rate of Return (IRR)	9.92 %
Capitalization Rate	5.15 %
Gross Rent Multiplier (GRM)	9.70
Debt-coverage Ratio (DCR)	1.01
Operating Expense Ratio (OER)	50.00 %

Financial Breakdown

Purchase Price	$ 1,100,000
Purchase Costs	$ 10,000
Repair/Construction Costs	$ 0
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 1,110,000
Financing	$ 825,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 285,000
Cash at Closing Cash at Closing This number includes down payment and loan points. Cash at Closing This number includes down payment and loan points.	$ 275,000
Cash During Rehab Cash During Rehab Shows the cash amount remaining to fund the purchase and rehab/construction. Cash During Rehab Shows the cash amount remaining to fund the purchase and rehab/construction.	$ 10,000

Operating Analysis

Rent	$ 9,450/mo
Gross Operating Income (GOI)	$ 113,400
Total Expenses	$ 56,700
Net Operating Income (NOI)	$ 56,700
Annual Debt Service	$ 56,211
Cash Flow Before Taxes (CFBT)	$ 489
Income Tax Liability	$ -2,740
Cash Flow After Taxes (CFAT)	$ 3,229

An Office/Retail asset for sale in Woodlawn! This asset comes with 10075 Springfield Pike as a package deal. Currently 95% occupied.Traffic count is great, parking lot has 25 spaces. 10% C.A.P Investment!

Purchase Price	$ 1,100,000
Address	10045 Springfield Pike , Woodlawn, 45215, OH
MLS^® #	1640203
Year Built	1962
Type	Commercial
Size	9610 SF
Bathrooms	7

Property History

Date	Price	Change	Event
5/25/2021	$1,500,000	7.14%	Price Up
10/3/2019	$1,400,000		Listed Price

10045 Springfield Pike Woodlawn, OH 45215

Commercial

Bldg type
9,610

SqFt
7

Baths

10045 Springfield Pike Woodlawn, OH 45215

$ 9,450

Rent
Commercial

Bldg type
9,610

SqFt
7

Baths

Your rent is reasonable for the area.

Average

$ 0

Median

$ 0

25th %

$ 0

75th %

$ 0

Annual Property Operating Data

Incomes		% of GOI
Gross Scheduled Income Gross Scheduled Income (GSI) Represents the total of monthly rents for the particular property, including the potential rents from vacant units and uncollectable rents. Gross Scheduled Income (GSI) Represents the total of monthly rents for the particular property, including the potential rents from vacant units and uncollectable rents.	$ 113,400
Total Gross Income	$ 113,400
Vacancy loss Vacancy and Credit Loss Part of the potential rental income that is lost because of unoccupied units or uncollectable rent from tenants. Vacancy and Credit Loss Part of the potential rental income that is lost because of unoccupied units or uncollectable rent from tenants.	$ 0
Gross Operating Income Gross Operating Income (GOI) An actual income which is expected to be collected in the property. Gross Operating Income (GOI) An actual income which is expected to be collected in the property.	$ 113,400	100.00 %
Expenses Operating Expenses Expenses necessary for maintaining the property and ensuring its continued ability to produce income (doesn't include mortgage payments or depreciation). Operating Expenses Expenses necessary for maintaining the property and ensuring its continued ability to produce income (doesn't include mortgage payments or depreciation).
50% rule	$ 56,700	50.00 %
Total Expenses	$ 56,700	50.00 %
Net Operating Income Net Operating Income (NOI) Important measurement calculated as gross operating income minus operating expenses. Net Operating Income (NOI) Important measurement calculated as gross operating income minus operating expenses.	$ 56,700	50.00 %

Cash Flow (Year 1)

Net Operating Income	$ 56,700	50.00 %
Annual Debt Service	$ 56,211	49.57 %
Cash Flow Before Taxes (CFBT) Cash Flow All the inflows and outflows of cash for a certain property (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property. Cash Flow All the inflows and outflows of cash for a certain property (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property.	$ 489	0.43 %
Income Tax Liability	$ -2,740	-2.42 %
Cash Flow After Taxes (CFAT) Cash Flow All the inflows and outflows of cash (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property. Cash Flow All the inflows and outflows of cash (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property.	$ 3,229	2.85 %

Operating Ratios

Operating Expense Ratio Operating Expense Ratio Ratio of the operating expenses to the gross operating income (GOI). Operating Expense Ratio Ratio of the operating expenses to the gross operating income (GOI).	50.00 %
Break-Even Ratio Break-Even Ratio (BER) Another benchmark used by mortgage lenders, estimating how vulnerable is a certain property to defaulting on its mortgage if part of the rental income is declined. Most of the lenders are looking for BER of 85% or less. Break-Even Ratio (BER) Another benchmark used by mortgage lenders, estimating how vulnerable is a certain property to defaulting on its mortgage if part of the rental income is declined. Most of the lenders are looking for BER of 85% or less.	99.57 %

Financial Measures

Net Present Value Net Present Value (NPV) Probably the best measure of any investment thanks to its complexity; taking into account all future cash flows including the selling price, and it converts all these amounts to their present values using discount rate required by the investor. More information and an example on the blog. Net Present Value (NPV) Probably the best measure of any investment thanks to its complexity; taking into account all future cash flows including the selling price, and it converts all these amounts to their present values using discount rate required by the investor. More information and an example on the blog.	$ 368,628
Internal Rate of Return Internal Rate of Return (IRR) Rate which an investment will return over the estimated period of ownership. It is in fact the discount rate that produces NPV of zero. Internal Rate of Return (IRR) Rate which an investment will return over the estimated period of ownership. It is in fact the discount rate that produces NPV of zero.	9.92 %
Profitability Index Profitability Index Similar to NPV, also calculates with the present values of future cash flows and discount rate. It shows whether the present value of the cash flows is worth the initial investment. Good investment should be above 1.0 Profitability Index Similar to NPV, also calculates with the present values of future cash flows and discount rate. It shows whether the present value of the cash flows is worth the initial investment. Good investment should be above 1.0	2.29
Annual Depreciation	$ 22,564

Holding period of 20 years and discount rate of 5.00% were used for calculation of NPV and IRR. The rest of the financial measures are for the 1st year only and therefore don't provide such an exact information.

Investment Return Ratios

Cash on Cash Return Cash on Cash Return Ratio between annual cash flow before taxes and the total initial investment, expressed as a percentage. It does not take in account the future value of money. Cash on Cash Return Ratio between annual cash flow before taxes and the total initial investment, expressed as a percentage. It does not take in account the future value of money.	0.17 %
Return on Investment Return on Investment Very similar to Cash on Cash Return, but also takes in account appreciation of the property in the first year. Return on Investment Very similar to Cash on Cash Return, but also takes in account appreciation of the property in the first year.	11.75 %
Capitalization Rate Capitalization Rate Calculated as ratio of the net operating income and the value of the property. Capitalization Rate Calculated as ratio of the net operating income and the value of the property.	5.15 %
Gross Rental Yield Gross Rental Yield Used for a particular property or also as a market indicator when using median values of rent and house prices - counted from gross scheduled rent and initial investment. Gross Rental Yield Used for a particular property or also as a market indicator when using median values of rent and house prices - counted from gross scheduled rent and initial investment.	10.31 %
Gross Rent Multiplier Gross Rent Multiplier (GRM) Counted as a ratio of market value of the property and gross scheduled income. Gross Rent Multiplier (GRM) Counted as a ratio of market value of the property and gross scheduled income.	9.70

Financing
Down Payment		$ 275,000
Conventional		$ 825,000
Loan to Value Ratio Loan to Value Ratio Shows sum of all purchase and rehab loans divided by purchase price. Loan to Value Ratio Shows sum of all purchase and rehab loans divided by purchase price.		75.00 %
Loan to Cost Ratio Loan to Cost Ratio Shows sum of all purchase and rehab loans to construction cost (purchase price + repairs). Loan to Cost Ratio Shows sum of all purchase and rehab loans to construction cost (purchase price + repairs).		75.00 %
Debt Coverage Ratio		1.01

Conventional Financing of: Purchase price ($ 1,100,000)
Type	Amortized
Loan Amount	$ 825,000
Down payment (25%)	$ 275,000
Amortization	30 years
Interest Rate	5.50 %
Monthly Payment	$ 4,684.26

This chart shows the process of accumulation of investor's equity. There is some equity created right at the beginning with the rehab/construction and later investor's equity is rising by paying off the principal of the loan and also by appreciation over the years. All the green parts is the cummulative equity belonging to the investor and the red part belongs to the lender.

Year	0	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20
Operational Analysis
Gross Scheduled Income	0	113,400	115,668	117,981	120,341	122,748	125,203	127,707	130,261	132,866	135,524	138,234	140,999	143,819	146,695	149,629	152,621	155,674	158,787	161,963	165,202
Vacancy Loss	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Gross Operating Income	0	113,400	115,668	117,981	120,341	122,748	125,203	127,707	130,261	132,866	135,524	138,234	140,999	143,819	146,695	149,629	152,621	155,674	158,787	161,963	165,202
Expenses	0	56,700	57,834	58,991	60,170	61,374	62,601	63,853	65,130	66,433	67,762	69,117	70,499	71,909	73,348	74,814	76,311	77,837	79,394	80,982	82,601
Net Operating Income	0	56,700	57,834	58,991	60,171	61,374	62,601	63,853	65,130	66,433	67,762	69,117	70,499	71,909	73,347	74,814	76,311	77,837	79,394	80,982	82,601
Loan Payment	0	56,211	56,211	56,211	56,211	56,211	56,211	56,211	56,211	56,211	56,211	56,211	56,211	56,211	56,211	56,211	56,211	56,211	56,211	56,211	56,211
Payment Interest Part	0	45,098	44,471	43,808	43,109	42,370	41,589	40,764	39,893	38,972	38,000	36,973	35,888	34,741	33,530	32,251	30,899	29,471	27,963	26,370	24,686
Payment Principal Part	0	11,113	11,740	12,403	13,102	13,841	14,622	15,447	16,318	17,239	18,211	19,238	20,323	21,470	22,681	23,960	25,312	26,740	28,248	29,841	31,525
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-285,000	489	1,623	2,780	3,959	5,163	6,390	7,642	8,919	10,222	11,551	12,906	14,288	15,698	17,136	18,603	20,100	21,626	23,183	24,770	26,390
Depreciation	0	22,564	22,564	22,564	22,564	22,564	22,564	22,564	22,564	22,564	22,564	22,564	22,564	22,564	22,564	22,564	22,564	22,564	22,564	22,564	22,564
Taxes	0	-2,740	-2,300	-1,845	-1,376	-890	-388	131	668	1,224	1,799	2,395	3,012	3,651	4,313	5,000	5,712	6,450	7,217	8,012	8,838
Cash Flow After Taxes	-285,000	3,229	3,923	4,625	5,335	6,053	6,778	7,511	8,251	8,998	9,751	10,511	11,276	12,047	12,823	13,603	14,388	15,175	15,966	16,758	17,552

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 20 years. Below is the resale price calculated using different methods.

Appreciation (3.00%)	$ 1,986,722
Cap Rate (5.15%) & NOI	$ 1,603,907
Gross Rent Multiplier	$ 1,602,463

Sale Proceeds

Projected Selling Price	$ 1,986,722
Costs of Sale (6.00%)	$ 119,203
1. Loan Balance Payoff	$ 431,624
Net Sale Proceeds Before Tax	$ 1,435,894

In the resale analysis we do not include any calculation for taxes that might be owed on sale of the property. The tax laws for the resale are rather complex and subjected to frequent changes.

Net Assets and Yield

Net Assets
Sale Proceeds Before Tax	$ 1,435,894
Investor Cash Outlay	$ 285,000
Net Assets	$ 1,150,894
Average Yield
Annual Net Assets	$ 57,545
Average Cash Flow (After Taxes)	$ 9,350
Average Annual Gain (After Taxes)	$ 66,895
Average Annual Yield (After Taxes)	6.08 %

This charts shows Net Present Value (NPV) when property is sold in various years, i.e. when sold in 5th year, the NPV is calculated from 5 years of Cash Flow (including the selling price) and this NPV is displayed in year 5. Optimal holding period can be estimated, using this method - when NPV is the highest. Please note that appreciation growth can change these numbers greatly. It sometimes makes sense to sell the property even before the end of the mortgage term.

Property Report: 10045 Springfield Pike, Woodlawn RENTAL

Property Report :

10045 Springfield Pike, Woodlawn, OH 45215

Executive Summary