14 Hamilton Heath Dr, Tampa FL 33604

14 Hamilton Heath Dr, Tampa, FL 33604

Multifamily:

Investment strategy: Rental Property

Purchase Price$ 725,000

Rent$ 5,950/mo

Monthly Cash Flow$ 2,975

Cash on Cash Return4.90 %

Financial Analysis

Cash on Cash Return	4.90 %
Internal Rate of Return (IRR)	6.61 %
Capitalization Rate	4.92 %
Gross Rent Multiplier (GRM)	10.15
Debt-coverage Ratio (DCR)	0.00
Operating Expense Ratio (OER)	50.00 %

Financial Breakdown

Purchase Price	$ 725,000
Purchase Costs	$ 2,985
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).	$ 727,985
Financing	$ 0
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 727,985
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.	$ 727,985

Operating Analysis

Rent	$ 5,950/mo
Gross Operating Income (GOI)	$ 71,400
Total Expenses	$ 35,700
Net Operating Income (NOI)	$ 35,700
Annual Debt Service	$ 0
Cash Flow Before Taxes (CFBT)	$ 35,700
Income Tax Liability	$ 3,652
Cash Flow After Taxes (CFAT)	$ 32,048

Purchase Price	$ 725,000
Address	14 Hamilton Heath Dr , Tampa, 33604, FL
Type	Multifamily
Number of Units	4

Unit	Rent
UNIT A	$ 1,250/mo
UNIT B	$ 1,700/mo
UNIT C	$ 1,750/mo
UNIT D	$ 1,250/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.	$ 71,400
Total Gross Income	$ 71,400
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.	$ 0
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.	$ 71,400	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).
50% rule	$ 35,700	50.00 %
Total Expenses	$ 35,700	50.00 %
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.	$ 35,700	50.00 %

Cash Flow (Year 1)

Net Operating Income	$ 35,700	50.00 %
Annual Debt Service	$ 0	0.00 %
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.	$ 35,700	50.00 %
Income Tax Liability	$ 3,652	5.12 %
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.	$ 32,048	44.88 %

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).	50.00 %
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.	50.00 %

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.	$ 99,592
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.	6.61 %
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	1.14
Annual Depreciation	$ 21,091

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.	4.90 %
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.	7.89 %
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.	4.92 %
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.	9.85 %
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.	10.15

There is no financing selected in this deal.

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	71,400	72,828	74,285	75,770	77,286	78,831	80,408	82,016	83,656	85,330
Vacancy Loss	0	0	0	0	0	0	0	0	0	0	0
Gross Operating Income	0	71,400	72,828	74,285	75,770	77,286	78,831	80,408	82,016	83,656	85,330
Expenses	0	35,700	36,414	37,142	37,885	38,643	39,416	40,204	41,008	41,828	42,665
Net Operating Income	0	35,700	36,414	37,142	37,885	38,643	39,416	40,204	41,008	41,828	42,665
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-727,985	35,700	36,414	37,142	37,885	38,643	39,416	40,204	41,008	41,828	42,665
Depreciation	0	21,091	21,091	21,091	21,091	21,091	21,091	21,091	21,091	21,091	21,091
Taxes	0	3,652	3,831	4,013	4,199	4,388	4,581	4,778	4,979	5,184	5,393
Cash Flow After Taxes	-727,985	32,048	32,583	33,129	33,687	34,255	34,835	35,426	36,029	36,644	37,271

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%)	$ 974,339
Cap Rate (4.92%) & NOI	$ 867,171
Gross Rent Multiplier	$ 866,095

Sale Proceeds

Projected Selling Price	$ 974,339
Costs of Sale (6.00%)	$ 58,460
Net Sale Proceeds Before Tax	$ 915,879

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	$ 915,879
Investor Cash Outlay	$ 727,985
Net Assets	$ 187,894
Average Yield
Annual Net Assets	$ 18,789
Average Cash Flow (After Taxes)	$ 30,863
Average Annual Gain (After Taxes)	$ 49,653
Average Annual Yield (After Taxes)	6.85 %

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: 14 Hamilton Heath Dr, Tampa RENTAL PUBLISHED

Property Report :

14 Hamilton Heath Dr, Tampa, FL 33604

Executive Summary