10518 Pintail Ln, Indianapolis IN 46239

10518 Pintail Ln, Indianapolis, IN 46239

Singlefamily: 3 bedrooms , 2.5 bathrooms

Year built: 2015, Size: 2186 SF

Investment strategy: Rental Property

Purchase Price$ 279,900

Rent$ 1,625/mo

Monthly Cash Flow$ 69

Cash on Cash Return1.47 %

Financial Analysis

Cash on Cash Return	1.47 %
Internal Rate of Return (IRR)	8.10 %
Capitalization Rate	4.88 %
Gross Rent Multiplier (GRM)	14.35
Debt-coverage Ratio (DCR)	1.06
Operating Expense Ratio (OER)	22.21 %

Financial Breakdown

Purchase Price	$ 279,900
Purchase Costs	$ 0
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).	$ 279,900
Financing	$ 223,920
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 55,980
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.	$ 55,980
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	$ 1,625/mo
Gross Operating Income (GOI)	$ 17,550
Total Expenses	$ 3,898
Net Operating Income (NOI)	$ 13,652
Annual Debt Service	$ 12,828
Cash Flow Before Taxes (CFBT)	$ 824
Income Tax Liability	$ -1,688
Cash Flow After Taxes (CFAT)	$ 2,512

Well-appointed home in Franklin Twp is ready for your move-in. Open and functional floorplan offers scraped hardwood laminate throughout main level, beautiful kitchen with center island/breakfast bar, double ovens, breakfast room, and dining room. Relax in the family room with gas log fireplace or on the extended patio with fully fenced rear yard. Spacious bedrooms, loft, and laundry are upstairs. Walk-in closets provide ample storage. Convenient mudroom w/open lockers as you come in from the garage. Shoot hoops on your Goalrilla, then cool off at the neighborhood pool!

Purchase Price	$ 279,900
Address	10518 Pintail Ln , Indianapolis, 46239, IN
MLS^® #	21809199
Listing Agent	Ken Nissley
Listing Broker	Kenter Real Estate, Llc
Year Built	2015
Type	Singlefamily
Size	2186 SF
Bedrooms	3
Bathrooms	2.5

Property History

Date	Price	Change	Event
8/14/2020
9/22/2015

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.	$ 19,500
Total Gross Income	$ 19,500
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.	$ 1,950
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.	$ 17,550	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	$ 948	5.40 %
Association fees	$ 372	2.12 %
Property tax	$ 2,302	13.12 %
Insurance	$ 276	1.57 %
Total Expenses	$ 3,898	22.21 %
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.	$ 13,652	77.79 %

Cash Flow (Year 1)

Net Operating Income	$ 13,652	77.79 %
Annual Debt Service	$ 12,828	73.10 %
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.	$ 824	4.69 %
Income Tax Liability	$ -1,688	-9.62 %
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.	$ 2,512	14.31 %

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).	22.21 %
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.	95.31 %

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.	$ 53,592
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.	8.10 %
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	1.96
Annual Depreciation	$ 8,143

Holding period of 30 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.	1.47 %
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.	6.47 %
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.	4.88 %
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.	6.97 %
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.	14.35

Financing
Down Payment		$ 55,980
30y		$ 223,920
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.		80.00 %
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).		80.00 %
Debt Coverage Ratio		1.06

30y Financing of: Purchase price ($ 279,900)
Type	Amortized
Loan Amount	$ 223,920
Down payment (20%)	$ 55,980
Amortization	30 years
Interest Rate	4.00 %
Monthly Payment	$ 1,069.03

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	21	22	23	24	25	26	27	28	29	30
Operational Analysis
Gross Scheduled Income	0	19,500	19,695	19,892	20,091	20,292	20,495	20,700	20,907	21,116	21,327	21,540	21,756	21,973	22,193	22,415	22,639	22,865	23,094	23,325	23,558	23,794	24,032	24,272	24,515	24,760	25,007	25,258	25,510	25,765	26,023
Vacancy Loss	0	1,950	1,970	1,989	2,009	2,029	2,049	2,070	2,091	2,112	2,133	2,154	2,176	2,197	2,219	2,241	2,264	2,287	2,309	2,332	2,356	2,379	2,403	2,427	2,451	2,476	2,501	2,526	2,551	2,577	2,602
Gross Operating Income	0	17,550	17,726	17,903	18,082	18,263	18,445	18,630	18,816	19,004	19,194	19,386	19,580	19,776	19,974	20,173	20,375	20,579	20,785	20,992	21,202	21,414	21,629	21,845	22,063	22,284	22,507	22,732	22,959	23,189	23,421
Expenses	0	3,898	3,976	4,055	4,137	4,219	4,304	4,390	4,478	4,567	4,658	4,752	4,847	4,944	5,042	5,143	5,246	5,351	5,458	5,567	5,679	5,792	5,908	6,026	6,147	6,270	6,395	6,523	6,653	6,786	6,922
Net Operating Income	0	13,652	13,750	13,847	13,945	14,043	14,142	14,240	14,338	14,437	14,536	14,635	14,733	14,832	14,931	15,030	15,129	15,228	15,326	15,425	15,524	15,622	15,720	15,819	15,917	16,014	16,112	16,209	16,306	16,402	16,498
Loan Payment	0	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828	12,828
Payment Interest Part	0	8,885	8,724	8,557	8,383	8,202	8,014	7,817	7,613	7,401	7,180	6,950	6,710	6,461	6,201	5,931	5,650	5,358	5,054	4,737	4,407	4,064	3,707	3,335	2,949	2,546	2,127	1,691	1,237	765	274
Payment Principal Part	0	3,943	4,104	4,271	4,445	4,626	4,815	5,011	5,215	5,428	5,649	5,879	6,118	6,368	6,627	6,897	7,178	7,470	7,775	8,092	8,421	8,764	9,121	9,493	9,880	10,282	10,701	11,137	11,591	12,063	12,555
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	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-55,980	824	921	1,019	1,117	1,215	1,313	1,412	1,510	1,609	1,707	1,806	1,905	2,004	2,103	2,202	2,301	2,399	2,498	2,597	2,695	2,794	2,892	2,990	3,088	3,186	3,283	3,381	3,477	3,574	3,670
Depreciation	0	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143
Taxes	0	-1,688	-1,559	-1,426	-1,290	-1,151	-1,008	-860	-709	-553	-393	-229	-60	114	293	478	668	863	1,065	1,273	1,487	1,708	1,935	2,170	2,412	2,663	2,921	3,187	3,463	3,747	4,041
Cash Flow After Taxes	-55,980	2,512	2,480	2,445	2,407	2,366	2,321	2,272	2,219	2,162	2,101	2,035	1,965	1,890	1,809	1,724	1,633	1,536	1,433	1,324	1,209	1,086	957	820	676	523	363	193	15	-173	-371

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 30 years. Below is the resale price calculated using different methods.

Appreciation (1.00%)	$ 377,263
Cap Rate (4.88%) & NOI	$ 338,082
Gross Rent Multiplier	$ 373,428

Sale Proceeds

Projected Selling Price	$ 377,263
Costs of Sale (6.00%)	$ 22,636
Net Sale Proceeds Before Tax	$ 354,627

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	$ 354,627
Investor Cash Outlay	$ 55,980
Net Assets	$ 298,647
Average Yield
Annual Net Assets	$ 9,955
Average Cash Flow (After Taxes)	$ 1,477
Average Annual Gain (After Taxes)	$ 11,432
Average Annual Yield (After Taxes)	4.08 %

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: 10518 Pintail Ln, Indianapolis RENTAL

Property Report :

10518 Pintail Ln, Indianapolis, IN 46239

Executive Summary