122 Ridgemont Dr: 122 Ridgemont Dr, Albrightsville PA 18210

122 Ridgemont Dr, Albrightsville, PA 18210

Singlefamily: 4 bedrooms , 2 bathrooms

Year built: 1987, Size: 1475 SF

Investment strategy: Rental Property

Purchase Price$ 152,000

Rent$ 2,700/mo

Monthly Cash Flow$ 849

Cash on Cash Return31.75 %

Financial Analysis

Cash on Cash Return	31.75 %
Internal Rate of Return (IRR)	31.74 %
Capitalization Rate	11.29 %
Gross Rent Multiplier (GRM)	4.69
Debt-coverage Ratio (DCR)	2.46
Operating Expense Ratio (OER)	46.51 %
After Repair Value	$ 152,000

Financial Breakdown

Purchase Price	$ 152,000
Purchase Costs	$ 1,700
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).	$ 153,700
Financing	$ 121,600
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 32,100
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.	$ 30,400
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.	$ 1,700

Operating Analysis

Rent	$ 2,700/mo
Gross Operating Income (GOI)	$ 32,076
Total Expenses	$ 14,917
Net Operating Income (NOI)	$ 17,159
Annual Debt Service	$ 6,966
Cash Flow Before Taxes (CFBT)	$ 10,192
Income Tax Liability	$ 1,978
Cash Flow After Taxes (CFAT)	$ 8,214

This Stunning Contemporary is your Four Season escape in the Poconos! Enjoy the spacious upgraded kitchen with granite countertops and subway tile backsplash. The open concept living area includes a spacious dining room and living room with fireplace, vaulted ceilings and skylights for plenty of natural light. A Beautiful Master Bedroom on the first floor with an awesome upgraded master bath, plus 1 more bedroom. Upstairs you will find 2 more bedrooms, freshly painted with a full bath and a spacious loft for relaxing. Expansive deck for gathering after a long day! The 2 car garage and a Flat 1-acre corner lot complete this home. Located in an Amenity filled Community! A Must See!

Purchase Price	$ 152,000
Address	122 Ridgemont Dr , Albrightsville, 18210, PA
MLS^® #	PM-73643
Listing Broker	Keller Williams Real Estate - West End
Year Built	1987
Type	Singlefamily
Size	1475 SF
Bedrooms	4
Bathrooms	2

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.	$ 32,400
Total Gross Income	$ 32,400
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.	$ 324
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.	$ 32,076	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).
PropertyEvolve Property manager manager	$ 3,208	10.00 %
UtilitieUtilities (electric, garbage, ws	$ 1,980	6.17 %
Insurance	$ 600	1.87 %
Toiletries	$ 1,800	5.61 %
Grass	$ 1,440	4.49 %
Association fees	$ 1,075	3.35 %
Property tax	$ 4,095	12.77 %
Internet	$ 720	2.24 %
Total Expenses	$ 14,917	46.51 %
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.	$ 17,159	53.49 %

Cash Flow (Year 1)

Net Operating Income	$ 17,159	53.49 %
Annual Debt Service	$ 6,966	21.72 %
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.	$ 10,192	31.77 %
Income Tax Liability	$ 1,978	6.17 %
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.	$ 8,214	25.61 %

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).	46.51 %
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.	68.23 %

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.	$ 98,205
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.	31.74 %
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	4.06
Annual Depreciation	$ 4,422

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.	31.75 %
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.	45.96 %
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.	11.29 %
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.	21.32 %
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.	4.69

Financing		% of ARV
Down Payment	$ 30,400	20.00 %
Wells Fargo	$ 121,600	80.00 %
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		2.46

Wells Fargo Financing of: Purchase price ($ 152,000)
Type	Amortized
Loan Amount	$ 121,600
Down payment (20%)	$ 30,400
Amortization	30 years
Interest Rate	4.00 %
Monthly Payment	$ 580.54

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	32,400	33,048	33,709	34,383	35,071	35,772	36,488	37,217	37,962	38,721
Vacancy Loss	0	324	330	337	344	351	358	365	372	380	387
Gross Operating Income	0	32,076	32,718	33,372	34,039	34,720	35,415	36,123	36,845	37,582	38,334
Expenses	0	14,917	15,216	15,520	15,831	16,147	16,470	16,799	17,135	17,478	17,828
Net Operating Income	0	17,159	17,502	17,852	18,209	18,573	18,944	19,323	19,710	20,104	20,506
Loan Payment	0	6,966	6,966	6,966	6,966	6,966	6,966	6,966	6,966	6,966	6,966
Payment Interest Part	0	4,825	4,738	4,647	4,552	4,454	4,352	4,245	4,134	4,019	3,899
Payment Principal Part	0	2,141	2,229	2,319	2,414	2,512	2,615	2,721	2,832	2,947	3,068
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-32,100	10,192	10,535	10,885	11,242	11,607	11,978	12,357	12,743	13,138	13,540
Depreciation	0	4,422	4,422	4,422	4,422	4,422	4,422	4,422	4,422	4,422	4,422
Taxes	0	1,978	2,085	2,196	2,309	2,424	2,543	2,664	2,788	2,916	3,046
Cash Flow After Taxes	-32,100	8,214	8,450	8,690	8,934	9,182	9,435	9,693	9,955	10,222	10,493

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%)	$ 204,275
Cap Rate (11.29%) & NOI	$ 181,630
Gross Rent Multiplier	$ 181,601

Sale Proceeds

Projected Selling Price	$ 204,275
Costs of Sale (6.00%)	$ 12,257
1. Loan Balance Payoff	$ 95,801
Net Sale Proceeds Before Tax	$ 96,217

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	$ 96,217
Investor Cash Outlay	$ 32,100
Net Assets	$ 64,117
Average Yield
Annual Net Assets	$ 6,412
Average Cash Flow (After Taxes)	$ 8,277
Average Annual Gain (After Taxes)	$ 14,689
Average Annual Yield (After Taxes)	9.66 %

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: 122 Ridgemont Dr RENTAL

Property Report :

122 Ridgemont Dr

122 Ridgemont Dr, Albrightsville, PA 18210

Executive Summary

122 Ridgemont Dr, Albrightsville, PA 18210

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

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

Resale Price Evaluation Methods

Sale Proceeds

Net Assets and Yield

Photos