10115 NW 9th Street Cir Apt 205, Miami FL 33172

10115 NW 9th Street Cir Apt 205, Miami, FL 33172

Condominium: 2 bedrooms , 1 bathroom

Year built: 1982, Size: 874 SF

Investment strategy: Rental Property

Purchase Price$ 235,000

Rent$ 2,400/mo

Monthly Cash Flow$ 813

Cash on Cash Return14.51 %

Financial Analysis

Cash on Cash Return	14.51 %
Internal Rate of Return (IRR)	16.33 %
Capitalization Rate	8.98 %
Gross Rent Multiplier (GRM)	8.16
Debt-coverage Ratio (DCR)	1.86
Operating Expense Ratio (OER)	22.01 %

Financial Breakdown

Purchase Price	$ 235,000
Purchase Costs	$ 3,525
Repair/Construction Costs	$ 5,000
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 243,525
Financing	$ 176,250
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 67,275
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.	$ 62,275
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.	$ 5,000

Operating Analysis

Rent	$ 2,400/mo
Gross Operating Income (GOI)	$ 27,072
Total Expenses	$ 5,958
Net Operating Income (NOI)	$ 21,114
Annual Debt Service	$ 11,354
Cash Flow Before Taxes (CFBT)	$ 9,760
Income Tax Liability	$ 1,381
Cash Flow After Taxes (CFAT)	$ 8,379

Location, Location, Location, near the airport and dolphins mall, many shops and restaurants in the Fontainebleau area, A/C replaced it recently, upgraded bathroom, washer and drier in the unit, easy to park and easy to show. Text listing agent with company name and license number, ready to move in.

Purchase Price	$ 235,000
Address	10115 NW 9th Street Cir Apt 205 , Miami, 33172, FL
MLS^® #	F10318170
Listing Agent	Hugo D Gil
Listing Broker	Premiere Homes Realty Inc
Year Built	1982
Type	Condominium
Size	874 SF
Bedrooms	2
Bathrooms	1

Property History

Date	Price	Change	Event
2/10/2004
8/8/2002
12/30/1993

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.	$ 28,800
Total Gross Income	$ 28,800
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.	$ 1,728
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.	$ 27,072	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).
Property tax	$ 2,400	8.87 %
Property tax	$ 2,478	9.15 %
Insurance	$ 1,080	3.99 %
Total Expenses	$ 5,958	22.01 %
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.	$ 21,114	77.99 %

Cash Flow (Year 1)

Net Operating Income	$ 21,114	77.99 %
Annual Debt Service	$ 11,354	41.94 %
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.	$ 9,760	36.05 %
Income Tax Liability	$ 1,381	5.10 %
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.	$ 8,379	30.95 %

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).	22.01 %
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.	63.95 %

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.	$ 42,438
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.	16.33 %
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	1.63
Annual Depreciation	$ 6,836

Holding period of 6 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.	14.51 %
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.	24.99 %
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.	8.98 %
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.	12.26 %
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.	8.16

Financing
Down Payment		$ 58,750
BRENT		$ 176,250
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).		73.44 %
Debt Coverage Ratio		1.86

BRENT Financing of: Purchase price ($ 235,000)
Type	Amortized
Loan Amount	$ 176,250
Down payment (25%)	$ 58,750
Amortization	30 years
Interest Rate	5.00 %
Monthly Payment	$ 946.15

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
Operational Analysis
Gross Scheduled Income	0	28,800	29,376	29,964	30,563	31,174	31,798
Vacancy Loss	0	1,728	1,763	1,798	1,834	1,870	1,908
Gross Operating Income	0	27,072	27,613	28,166	28,729	29,304	29,890
Expenses	0	5,958	6,077	6,199	6,323	6,449	6,578
Net Operating Income	0	21,114	21,536	21,967	22,406	22,854	23,312
Loan Payment	0	11,354	11,354	11,354	11,354	11,354	11,354
Payment Interest Part	0	8,753	8,620	8,481	8,334	8,179	8,017
Payment Principal Part	0	2,600	2,733	2,873	3,020	3,175	3,337
Cash Flow
Repairs/Construction	5,000	0	0	0	0	0	0
Cash Flow Before Taxes	-67,275	9,760	10,183	10,613	11,053	11,501	11,958
Depreciation	0	6,836	6,836	6,836	6,836	6,836	6,836
Taxes	0	1,381	1,520	1,663	1,809	1,960	2,115
Cash Flow After Taxes	-67,275	8,379	8,663	8,951	9,243	9,541	9,843

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 6 years. Below is the resale price calculated using different methods.

Gross Rent Multiplier	$ 259,468
Appreciation (3.00%)	$ 280,602
Cap Rate (8.98%) & NOI	$ 259,594

Sale Proceeds

Projected Selling Price	$ 259,468
Costs of Sale (6.00%)	$ 15,568
1. Loan Balance Payoff	$ 158,511
Net Sale Proceeds Before Tax	$ 85,389

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	$ 85,389
Investor Cash Outlay	$ 67,275
Net Assets	$ 18,114
Average Yield
Annual Net Assets	$ 3,019
Average Cash Flow (After Taxes)	$ 7,463
Average Annual Gain (After Taxes)	$ 10,482
Average Annual Yield (After Taxes)	4.46 %

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: 10115 NW 9th Street Cir Apt 205, Miami RENTAL

Property Report :

10115 NW 9th Street Cir Apt 205, Miami, FL 33172

Executive Summary