Pasco Property: 10225 Old Hickory Ln, Port Richey FL 34668

10225 Old Hickory Ln, Port Richey, FL 34668

Singlefamily: 2 bedrooms , 2 bathrooms

Year built: 1973, Size: 1144 SF

Investment strategy: Rental Property

Purchase Price$ 95,000

Rent$ 1,100/mo

Monthly Cash Flow$ 359

Cash on Cash Return16.97 %

Financial Analysis

Cash on Cash Return	16.97 %
Internal Rate of Return (IRR)	26.00 %
Capitalization Rate	6.44 %
Gross Rent Multiplier (GRM)	10.45
Debt-coverage Ratio (DCR)	1.94
Operating Expense Ratio (OER)	25.15 %
After Repair Value	$ 138,000
Profit/Equity From Rehab	$ 41,400

Financial Breakdown

Purchase Price	$ 95,000
Purchase Costs	$ 1,100
Repair/Construction Costs	$ 500
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 96,600
Financing	$ 71,250
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 25,350
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.	$ 23,750
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.	$ 1,600

Operating Analysis

Rent	$ 1,100/mo
Gross Operating Income (GOI)	$ 11,880
Total Expenses	$ 2,988
Net Operating Income (NOI)	$ 8,892
Annual Debt Service	$ 4,590
Cash Flow Before Taxes (CFBT)	$ 4,302
Income Tax Liability	$ 647
Cash Flow After Taxes (CFAT)	$ 3,655

Lots of room in this home! Formal living/dining room. Kitchen with dinette that overlooks a family room. Bonus room off the family room that
has access to rear open patio. Two nice size bedrooms. Two full bathrooms. Great location as you have easy access to US 19 that offers lots of
amenities such as Gulf View Mall, multiple stores and restaurants. Just 5 minutes from downtown New Port Richey which offers parks, boat
ramps for river and additional restaurants and stores. Multiple beaches are all within 15-30 minutes. Land, Site, and Tax Information Great 2
bedroom, 2 bath home with open floor plan, living room/dining room combo. Eating space in kitchen, both baths inside with a glass enclosed
Florida Room.

Purchase Price	$ 95,000
Address	10225 Old Hickory Ln , Port Richey, 34668, FL
Year Built	1973
Type	Singlefamily
Size	1144 SF
Bedrooms	2
Bathrooms	2

Current Owner
Owner 1	Lois C Taylor
Owner 2	Thomas N Taylor
Address	35 GROVE AVE, FLOURTOWN, PA 19031-1906

10225 Old Hickory Ln Port Richey, FL 34668

$ 138,000

Property ARV
Singlefamily

Bldg type
1,144

SqFt
$ 121

per SqFt
2

Beds
2

Baths

#	Property address	Distance	Beds	Baths	SqFt	Date sold	Sale price	$/SqFt
1	10331 Alice M Ct	0.1mi	2	2.0	1,212	01/28/2020	$ 132,900	$ 110
2	7307 Orange Blossom Ave	0.3mi	2	2.0	1,100	08/19/2019	$ 132,500	$ 120
3	10124 Oleander Dr	0.4mi	2	2.0	1,201	02/19/2020	$ 135,500	$ 113
Average:							$ 133,633	$ 114

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.	$ 13,200
Total Gross Income	$ 13,200
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.	$ 1,320
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.	$ 11,880	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 manager	$ 1,188	10.00 %
Insurance	$ 900	7.58 %
Property tax	$ 900	7.58 %
Total Expenses	$ 2,988	25.15 %
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.	$ 8,892	74.85 %

Cash Flow (Year 1)

Net Operating Income	$ 8,892	74.85 %
Annual Debt Service	$ 4,590	38.63 %
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.	$ 4,302	36.21 %
Income Tax Liability	$ 647	5.45 %
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.	$ 3,655	30.76 %

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).	25.15 %
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.	63.79 %

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.	$ 78,274
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.	26.00 %
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	4.09
Annual Depreciation	$ 2,764

Holding period of 10 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.	16.97 %
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.	28.21 %
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.	6.44 %
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.	13.89 %
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.	10.45

Financing		% of ARV
Down Payment	$ 23,750	17.21 %
Loan	$ 71,250	51.63 %
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).		74.61 %
Debt Coverage Ratio		1.94

Loan Financing of: Purchase price ($ 95,000)
Type	Amortized
Loan Amount	$ 71,250
Down payment (25%)	$ 23,750
Amortization	30 years
Interest Rate	5.00 %
Monthly Payment	$ 382.49

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
Operational Analysis
Gross Scheduled Income	0	13,200	13,464	13,733	14,008	14,288	14,574	14,865	15,163	15,466	15,775
Vacancy Loss	0	1,320	1,346	1,373	1,401	1,429	1,457	1,487	1,516	1,547	1,578
Gross Operating Income	0	11,880	12,118	12,360	12,607	12,859	13,116	13,379	13,646	13,919	14,198
Expenses	0	2,988	3,048	3,109	3,171	3,234	3,299	3,365	3,432	3,501	3,571
Net Operating Income	0	8,892	9,070	9,251	9,436	9,625	9,817	10,014	10,214	10,418	10,627
Loan Payment	0	4,590	4,590	4,590	4,590	4,590	4,590	4,590	4,590	4,590	4,590
Payment Interest Part	0	3,539	3,485	3,428	3,369	3,306	3,241	3,172	3,099	3,023	2,943
Payment Principal Part	0	1,051	1,105	1,162	1,221	1,283	1,349	1,418	1,491	1,567	1,647
Cash Flow
Repairs/Construction	500	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-25,350	4,302	4,480	4,661	4,846	5,035	5,228	5,424	5,624	5,829	6,037
Depreciation	0	2,764	2,764	2,764	2,764	2,764	2,764	2,764	2,764	2,764	2,764
Taxes	0	647	705	765	826	889	953	1,020	1,088	1,158	1,230
Cash Flow After Taxes	-25,350	3,655	3,775	3,897	4,021	4,147	4,274	4,404	4,537	4,671	4,807

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 10 years. Below is the resale price calculated using different methods.

Appreciation (3.00%)	$ 185,460
Cap Rate (6.44%) & NOI	$ 165,011
Gross Rent Multiplier	$ 164,851

Sale Proceeds

Projected Selling Price	$ 185,460
Costs of Sale (6.00%)	$ 11,128
1. Loan Balance Payoff	$ 57,956
Net Sale Proceeds Before Tax	$ 116,376

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	$ 116,376
Investor Cash Outlay	$ 25,350
Net Assets	$ 91,026
Average Yield
Annual Net Assets	$ 9,103
Average Cash Flow (After Taxes)	$ 3,738
Average Annual Gain (After Taxes)	$ 12,841
Average Annual Yield (After Taxes)	13.52 %

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: Pasco Property RENTAL

Property Report :

Pasco Property

10225 Old Hickory Ln, Port Richey, FL 34668

Executive Summary

10225 Old Hickory Ln, Port Richey, FL 34668

Financial Analysis

Financial Breakdown

Total Capital Needed

Total Capital Needed

Cash out of Pocket

Cash out of Pocket

Cash at Closing

Cash at Closing

Cash During Rehab

Cash During Rehab

Operating Analysis

Property Description

Sales History

Comparative Sales Analysis

$ 138,000

Property ARV

Singlefamily

Bldg type

1,144

SqFt

$ 121

per SqFt

2

Beds

2

Baths

Operating Analysis

Annual Property Operating Data

Gross Scheduled Income (GSI)

Gross Scheduled Income (GSI)

Vacancy and Credit Loss

Vacancy and Credit Loss

Gross Operating Income (GOI)

Gross Operating Income (GOI)

Operating Expenses

Operating Expenses

Net Operating Income (NOI)

Net Operating Income (NOI)

Cash Flow (Year 1)

Cash Flow

Cash Flow

Cash Flow

Cash Flow

Operating Ratios

Operating Expense Ratio

Operating Expense Ratio

Break-Even Ratio (BER)

Break-Even Ratio (BER)

Financial Analysis

Financial Measures

Net Present Value (NPV)

Net Present Value (NPV)

Internal Rate of Return (IRR)

Internal Rate of Return (IRR)

Profitability Index

Profitability Index

Investment Return Ratios

Cash on Cash Return

Cash on Cash Return

Return on Investment

Return on Investment

Capitalization Rate

Capitalization Rate

Gross Rental Yield

Gross Rental Yield

Gross Rent Multiplier (GRM)

Gross Rent Multiplier (GRM)

Financing Overview

Loan to Value Ratio

Loan to Value Ratio

Loan to Cost Ratio

Loan to Cost Ratio

Long-term Cash Flow Forecast

Resale Analysis