1112 Labelle St, Jacksonville FL 32205

1112 Labelle St, Jacksonville, FL 32205

Multifamily: 4 bedrooms , 4 bathrooms

Year built: 1983, Size: 1908 SF

Investment strategy: Rental Property

Purchase Price$ 350,000

Rent$ 2,000/mo

Monthly Cash Flow$ -5

Cash on Cash Return-0.08 %

Financial Analysis

Cash on Cash Return	-0.08 %
Internal Rate of Return (IRR)	13.40 %
Capitalization Rate	4.03 %
Gross Rent Multiplier (GRM)	14.58
Debt-coverage Ratio (DCR)	1.00
Operating Expense Ratio (OER)	38.14 %

Financial Breakdown

Purchase Price	$ 350,000
Purchase Costs	$ 4,000
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).	$ 354,000
Financing	$ 280,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 74,000
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.	$ 70,000
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.	$ 4,000

Operating Analysis

Rent	$ 2,000/mo
Gross Operating Income (GOI)	$ 22,800
Total Expenses	$ 8,695
Net Operating Income (NOI)	$ 14,105
Annual Debt Service	$ 14,166
Cash Flow Before Taxes (CFBT)	$ -61
Income Tax Liability	$ -1,099
Cash Flow After Taxes (CFAT)	$ 1,038

Amazing opportunity to own an investment property/duplex - live in one side and rent out the other! Well maintained and updated 2 unit property. Each with own parcel #, water & electric. Both units are identical, one is currently vacant (1114 Labelle, the other on a long term lease (1112 Labelle). Open concept with kitchen open to family room. Inside Laundry in both units. Large, fully fenced private backyard in each unit. No HOA fees. Low maintenance. Flooring, kitchen, and baths have all been updated. Each unit has a slightly different color scheme. 2BR/2BA in each unit. 954SF each unit. Total 4BR/4BA 1908SF. Owner is selling both units together only. See additional listing MLS#1113452

Purchase Price	$ 350,000
Address	1112 Labelle St , Jacksonville, 32205, FL
MLS^® #	1113618
Listing Agent	Welch Team At KW Atlantic Partners Southside
Listing Broker	Keller Williams Realty Atlantic Partners Southside
Year Built	1983
Type	Multifamily
Number of Units
Size	1908 SF
Bedrooms	4
Bathrooms	4

Property History

Date	Price	Change	Event
2/29/2016
1/14/2016
4/15/2013
4/19/2000
8/17/1993

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.	$ 24,000
Total Gross Income	$ 24,000
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.	$ 1,200
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.	$ 22,800	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	$ 2,280	10.00 %
Utilities	$ 1,200	5.26 %
Capex	$ 1,200	5.26 %
Repairs	$ 1,200	5.26 %
Property tax	$ 1,243	5.45 %
Insurance	$ 1,572	6.89 %
Total Expenses	$ 8,695	38.14 %
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.	$ 14,105	61.86 %

Cash Flow (Year 1)

Net Operating Income	$ 14,105	61.86 %
Annual Debt Service	$ 14,166	62.13 %
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.	$ -61	-0.27 %
Income Tax Liability	$ -1,099	-4.82 %
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.	$ 1,038	4.55 %

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).	38.14 %
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.	100.27 %

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.	$ 80,312
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.	13.40 %
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	2.09
Annual Depreciation	$ 10,182

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.	-0.08 %
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.	14.11 %
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.	4.03 %
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.	6.86 %
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.	14.58

Financing
Down Payment		$ 70,000
Loan		$ 280,000
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.		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		1.00

Loan Financing of: Purchase price ($ 350,000)
Type	Amortized
Loan Amount	$ 280,000
Down payment (20%)	$ 70,000
Amortization	30 years
Interest Rate	3.00 %
Monthly Payment	$ 1,180.49

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	24,000	24,480	24,970	25,469	25,978	26,498	27,028	27,568	28,120	28,682
Vacancy Loss	0	1,200	1,224	1,248	1,273	1,299	1,325	1,351	1,378	1,406	1,434
Gross Operating Income	0	22,800	23,256	23,721	24,196	24,679	25,173	25,677	26,190	26,714	27,248
Expenses	0	8,695	8,869	9,046	9,227	9,412	9,600	9,792	9,988	10,188	10,391
Net Operating Income	0	14,105	14,387	14,675	14,968	15,268	15,573	15,885	16,202	16,526	16,857
Loan Payment	0	14,166	14,166	14,166	14,166	14,166	14,166	14,166	14,166	14,166	14,166
Payment Interest Part	0	8,320	8,142	7,959	7,770	7,576	7,375	7,169	6,956	6,737	6,511
Payment Principal Part	0	5,846	6,024	6,207	6,396	6,590	6,791	6,997	7,210	7,429	7,655
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-74,000	-61	221	509	802	1,102	1,407	1,719	2,036	2,360	2,691
Depreciation	0	10,182	10,182	10,182	10,182	10,182	10,182	10,182	10,182	10,182	10,182
Taxes	0	-1,099	-984	-867	-746	-623	-496	-367	-234	-98	41
Cash Flow After Taxes	-74,000	1,038	1,205	1,375	1,548	1,724	1,903	2,085	2,270	2,458	2,650

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%)	$ 470,371
Cap Rate (4.03%) & NOI	$ 418,282
Gross Rent Multiplier	$ 418,187

Sale Proceeds

Projected Selling Price	$ 470,371
Costs of Sale (6.00%)	$ 28,222
1. Loan Balance Payoff	$ 212,855
Net Sale Proceeds Before Tax	$ 229,293

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	$ 229,293
Investor Cash Outlay	$ 74,000
Net Assets	$ 155,293
Average Yield
Annual Net Assets	$ 15,529
Average Cash Flow (After Taxes)	$ 1,561
Average Annual Gain (After Taxes)	$ 17,090
Average Annual Yield (After Taxes)	4.88 %

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: 1112 Labelle St, Jacksonville RENTAL

Property Report :

1112 Labelle St, Jacksonville, FL 32205

Executive Summary