1041 Main St, Leicester MA 01524

1041 Main St, Leicester, MA 01524

Multifamily: 15 rooms: 2 bedrooms , 1 bathroom

Year built: 1820, Size: 4758 SF

Investment strategy: Rental Property

Purchase Price$ 101,230

Rent$ 4,200/mo

Monthly Cash Flow$ 1,553

Cash on Cash ReturnInfinite

Financial Analysis

Cash on Cash Return	Infinite
Internal Rate of Return (IRR)	N/A
Capitalization Rate	5.93 %
Gross Rent Multiplier (GRM)	10.91
Debt-coverage Ratio (DCR)	2.34
Operating Expense Ratio (OER)	34.15 %
After Repair Value	$ 550,000
Profit/Equity From Rehab	$ 373,770

Financial Breakdown

Purchase Price	$ 101,230
Purchase Costs	$ 0
Repair/Construction Costs	$ 75,000
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 176,230
Financing	$ 176,230
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 0
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.	$ 0
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.	$ 0

Operating Analysis

Rent	$ 4,200/mo
Gross Operating Income (GOI)	$ 49,488
Total Expenses	$ 16,900
Net Operating Income (NOI)	$ 32,588
Annual Debt Service	$ 13,950
Cash Flow Before Taxes (CFBT)	$ 18,638
Income Tax Liability	$ 4,679
Cash Flow After Taxes (CFAT)	$ 13,959

Completely Remodeled 2 Plus Bedroom unit in the center of Leicester* New Kitchen with granite counters & stainless appliances* Huge living/Dining room with hardwood floor* wide pine floors* Sparkling new bathroom* Economical Gas Heat* 2 Minute walk to Becker College* Loaded with character* Must SEE

Purchase Price	$ 101,230
Address	1041 Main St , Leicester, 01524, MA
Year Built	1820
Type	Multifamily
Number of Units
Size	4758 SF
Bedrooms	2
Bathrooms	1
Rooms Total	15

Unit	Rent
1	$ 1,400/mo
2	$ 1,400/mo
3	$ 1,400/mo

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.	$ 50,400
Parking	$ 600
Total Gross Income	$ 51,000
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.	$ 1,512
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.	$ 49,488	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	$ 3,000	6.06 %
Utilities	$ 3,600	7.27 %
Insurance	$ 1,400	2.83 %
Repairs	$ 2,400	4.85 %
Property tax	$ 6,500	13.13 %
Total Expenses	$ 16,900	34.15 %
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.	$ 32,588	65.85 %

Cash Flow (Year 1)

Net Operating Income	$ 32,588	65.85 %
Annual Debt Service	$ 13,950	28.19 %
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.	$ 18,638	37.66 %
Income Tax Liability	$ 4,679	9.45 %
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.	$ 13,959	28.21 %

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).	34.15 %
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.	62.34 %

Year	0	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15
Operational Analysis
Gross Scheduled Income	0	51,000	52,008	53,036	54,085	55,155	56,246	57,359	58,494	59,652	60,833	62,037	63,266	64,519	65,798	67,102
Vacancy Loss	0	1,512	1,542	1,573	1,605	1,637	1,669	1,703	1,737	1,772	1,807	1,843	1,880	1,918	1,956	1,995
Gross Operating Income	0	49,488	50,466	51,463	52,480	53,518	54,576	55,656	56,757	57,880	59,026	60,194	61,386	62,602	63,842	65,107
Expenses	0	16,900	17,238	17,583	17,934	18,293	18,659	19,032	19,413	19,801	20,197	20,601	21,013	21,433	21,862	22,299
Net Operating Income	0	32,588	33,228	33,880	34,546	35,225	35,917	36,624	37,344	38,079	38,829	39,593	40,373	41,169	41,980	42,807
Loan Payment	0	13,950	13,950	13,950	13,950	13,950	13,950	13,950	13,950	13,950	13,950	13,950	13,950	13,950	13,950	13,950
Payment Interest Part	0	10,929	10,734	10,528	10,307	10,073	9,824	9,558	9,276	8,975	8,655	8,314	7,952	7,566	7,155	6,718
Payment Principal Part	0	3,022	3,216	3,423	3,643	3,877	4,127	4,392	4,675	4,975	5,295	5,636	5,999	6,384	6,795	7,232
Cash Flow
Repairs/Construction	75,000	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	0	18,638	19,277	19,930	20,596	21,274	21,967	22,673	23,394	24,129	24,878	25,643	26,423	27,218	28,029	28,857
Depreciation	0	2,945	2,945	2,945	2,945	2,945	2,945	2,945	2,945	2,945	2,945	2,945	2,945	2,945	2,945	2,945
Taxes	0	4,679	4,887	5,102	5,323	5,552	5,787	6,030	6,281	6,540	6,807	7,083	7,369	7,664	7,970	8,286
Cash Flow After Taxes	0	13,959	14,390	14,828	15,272	15,723	16,180	16,643	17,113	17,589	18,071	18,559	19,054	19,554	20,060	20,571

Note: All amounts in the table above are in $

Property Report :

1041 Main St, Leicester, MA 01524

Executive Summary