14203 N 19th St, Tampa FL 33613

14203 N 19th St, Tampa, FL 33613

Singlefamily: 3 bedrooms , 1 bathroom

Year built: 1959, Size: 960 SF

Investment strategy: Wholesale deal offered to a rental investor

Contract Price$ 89,000

Wholesale Fee$ 10,000

Monthly Cash Flow$ 835

Cash on Cash Return9.41 %

A-B Investment

Contract Price	$ 89,000
Wholesale Assignment Fee	$ 10,000
Wholesale Price	$ 99,000

B-C Investment

Purchase Price	$ 99,000
Purchase Costs	$ 2,500
Repair/Construction Costs	$ 5,000
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 106,500
Net Present Value (NPV)	$ 53,109
Internal Rate of Return (IRR)	12.45 %
Cash on Cash Return	9.41 %
Capitalization Rate	6.68 %
After Repair Value	$ 150,000
Profit/Equity From Rehab	$ 43,500

Operating Analysis

Rent	$ 1,300/mo
Gross Operating Income (GOI)	$ 14,820
Total Expenses	$ 4,798
Net Operating Income (NOI)	$ 10,022
Annual Debt Service	$ 0
Cash Flow Before Taxes (CFBT)	$ 10,022
Income Tax Liability	$ 1,785
Cash Flow After Taxes (CFAT)	$ 8,236

NEWER ROOF! Lovely 3 bedroom 1 bathroom block home on a quiet street. This quaint home has oversized tile flooring, double sliders, a galley style kitchen with ample counter space and a large backyard. No Home Owner's Association Fees. Close to shopping, restaurants, a recreation center and is between I-275 and Dale Mabry. Schedule your showing today.

Purchase Price	$ 99,000
Address	14203 N 19th St , Tampa, 33613, FL
Year Built	1959
Type	Singlefamily
Size	960 SF
Bedrooms	3
Bathrooms	1

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.	$ 15,600
Total Gross Income	$ 15,600
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.	$ 780
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.	$ 14,820	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	$ 1,482	10.00 %
Insurance	$ 1,500	10.12 %
Repairs	$ 741	5.00 %
Property tax	$ 1,075	7.25 %
Total Expenses	$ 4,798	32.38 %
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.	$ 10,022	67.62 %

Cash Flow (Year 1)

Net Operating Income	$ 10,022	67.62 %
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.	$ 10,022	67.62 %
Income Tax Liability	$ 1,785	12.05 %
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.	$ 8,236	55.58 %

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).	32.38 %
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.	32.38 %

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.	$ 53,109
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.	12.45 %
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	1.50
Annual Depreciation	$ 2,880

Holding period of 7 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.	9.41 %
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.	12.20 %
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.	6.68 %
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.	15.76 %
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.	9.62

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
Operational Analysis
Gross Scheduled Income	0	15,600	15,912	16,230	16,555	16,886	17,224	17,568
Vacancy Loss	0	780	796	812	828	844	861	878
Gross Operating Income	0	14,820	15,116	15,419	15,727	16,042	16,362	16,690
Expenses	0	4,798	4,894	4,992	5,092	5,194	5,297	5,403
Net Operating Income	0	10,022	10,222	10,427	10,635	10,848	11,065	11,286
Cash Flow
Repairs/Construction	5,000	0	0	0	0	0	0	0
Cash Flow Before Taxes	-106,500	10,022	10,222	10,427	10,635	10,848	11,065	11,286
Depreciation	0	2,880	2,880	2,880	2,880	2,880	2,880	2,880
Taxes	0	1,785	1,836	1,887	1,939	1,992	2,046	2,102
Cash Flow After Taxes	-106,500	8,236	8,387	8,540	8,697	8,856	9,019	9,185

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 7 years. Below is the resale price calculated using different methods.

Capitalization (7.00%) & NOI	$ 161,234
Appreciation (3.00%)	$ 184,481
Gross Rent Multiplier	$ 169,005

Sale Proceeds

Projected Selling Price	$ 161,234
Costs of Sale (4.50%)	$ 7,256
Net Sale Proceeds Before Tax	$ 153,978

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	$ 153,978
Investor Cash Outlay	$ 106,500
Net Assets	$ 47,478
Average Yield
Annual Net Assets	$ 6,783
Average Cash Flow (After Taxes)	$ 7,391
Average Annual Gain (After Taxes)	$ 14,173
Average Annual Yield (After Taxes)	14.32 %

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: 14203 N 19th St, Tampa WHOLESALE

Property Report :

14203 N 19th St, Tampa, FL 33613

Executive Summary