1617 Caldwell St, Dallas TX 75223

1617 Caldwell St, Dallas, TX 75223

Multifamily: 3 bedrooms , 2 bathrooms

Year built: 1925, Size: 1932 SF

Investment strategy: Rental Property

Purchase Price$ 175,000

Rent$ 1,906/mo

Monthly Cash Flow$ 1,103

Cash on Cash Return92.88 %

Financial Analysis

Cash on Cash Return	92.88 %
Internal Rate of Return (IRR)	107.42 %
Capitalization Rate	3.71 %
Gross Rent Multiplier (GRM)	15.61
Debt-coverage Ratio (DCR)	0.00
Operating Expense Ratio (OER)	46.35 %
After Repair Value	$ 357,143
Profit/Equity From Rehab	$ 105,393

Financial Breakdown

Purchase Price	$ 175,000
Purchase Costs	$ 1,750
Repair/Construction Costs	$ 75,000
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 251,750
Financing	$ 237,500
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 14,250
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.	$ 12,500
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.	$ 1,750

Operating Analysis

Rent	$ 1,906/mo
Gross Operating Income (GOI)	$ 24,672
Total Expenses	$ 11,436
Net Operating Income (NOI)	$ 13,236
Annual Debt Service	$ 0
Cash Flow Before Taxes (CFBT)	$ 13,236
Income Tax Liability	$ 2,036
Cash Flow After Taxes (CFAT)	$ 11,200

duplex with great returns, tenants on month to month, leasing property in as is condition, tenant 1 pays 500 tenant b pays 850 and tenants pay utilities. . This property is distressed, being sold as-is. Seller does not and never has lived in the property, buyer to do due diligence. unrepresented buyers will be appointed an agent other than listing agent so please contact your agent of choice for info. Owner does not keep any documentation nor will he provide anything other than sdn and lbp. No showings without executed contract, no exceptions.

Purchase Price	$ 175,000
Address	1617 Caldwell St , Dallas, 75223, TX
MLS^® #	14737131
Listing Agent	Gabrielle Wolff
Listing Broker	Keller Williams Realty Dallas Preston Road
Year Built	1925
Type	Multifamily
Number of Units
Size	1932 SF
Bedrooms	3
Bathrooms	2

Unit	Rent
Unit 1	$ 1,000/mo
Unit 2	$ 906/mo

Current Owner
Owner 1	Biniam Teferra
Owner 2	Yewubdar Tekelemariyam
Address	460 LAKEHURST DR , MURPHY, TX 75094-4290

1617 Caldwell St Dallas, TX 75223

$ 357,143

Property ARV
Multifamily

Bldg type
1,932

SqFt
$ 185

per SqFt
3

Beds
2

Baths

1617 Caldwell St Dallas, TX 75223

$ 1,906

Rent
Multifamily

Bldg type
1,932

SqFt
3

Beds
2

Baths

Your rent is reasonable for the area.

Average

$ 1,606

Median

$ 1,550

25th %

$ 1,306

75th %

$ 1,906

#	Property address	Similarity	Distance	Beds	Baths	SqFt	Date Listed	Bldg type	Rent
1	1011 Grandview Ave	87%	1.8mi	3	2.5	2,136	12/15/2021	Duplex-Triplex	$ 3,600
2	4843 Silver Ave	78%	0.9mi	3	2	1,733	10/22/2021	Single Family	$ 1,750

Property address	Similarity	Distance	Beds	Baths	SqFt	Date Listed	Bldg type	Rent
1011 Grandview Ave	87%	1.8mi	3	2.5	2,136	12/15/2021	Duplex-Triplex	$ 3,600
1603 Caldwell St	78%	0.1mi	3	2	1,600	4/12/2022	Single Family	$ 1,800
603 Parkview Ave	84%	2.0mi	3	2	1,316	10/27/2021	Duplex-Triplex	$ 1,600
4843 Silver Ave	78%	0.9mi	3	2	1,733	10/22/2021	Single Family	$ 1,750
4427 Frank St	74%	0.7mi	3	2	1,400	4/12/2022	Single Family	$ 1,750

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.	$ 22,872
Pet Fee	$ 1,800
Total Gross Income	$ 24,672
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.	$ 24,672	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	$ 11,436	46.35 %
Total Expenses	$ 11,436	46.35 %
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.	$ 13,236	53.65 %

Cash Flow (Year 1)

Net Operating Income	$ 13,236	53.65 %
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.	$ 13,236	53.65 %
Income Tax Liability	$ 2,036	8.25 %
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.	$ 11,200	45.39 %

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).	46.35 %
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.	46.35 %

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.	$ 154,529
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.	107.42 %
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	11.84
Annual Depreciation	$ 5,091

Holding period of 5 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.	92.88 %
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.	129.73 %
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.	3.71 %
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.	13.07 %
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.	15.61

Financing		% of ARV
Down Payment	$ 12,500	3.50 %
Loan	$ 237,500	66.50 %
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.		135.71 %
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).		95.00 %
Debt Coverage Ratio		0.00

Loan Financing of: Purchase + Repairs ($ 250,000)
Type	Amortized
Loan Amount	$ 237,500
Down payment (5%)	$ 12,500
Amortization	30 years
Interest Rate	0.00 %
Monthly Payment	$ 0.00

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
Operational Analysis
Gross Scheduled Income	0	24,672	25,129	25,596	26,072	26,557
Vacancy Loss	0	0	0	0	0	0
Gross Operating Income	0	24,672	25,129	25,596	26,072	26,557
Expenses	0	11,436	11,665	11,898	12,136	12,379
Net Operating Income	0	13,236	13,465	13,698	13,936	14,179
Loan Payment	0	0	0	0	0	0
Payment Interest Part	0	0	0	0	0	0
Payment Principal Part	0	0	0	0	0	0
Cash Flow
Repairs/Construction	75,000	0	0	0	0	0
Cash Flow Before Taxes	-14,250	13,236	13,465	13,698	13,936	14,179
Depreciation	0	5,091	5,091	5,091	5,091	5,091
Taxes	0	2,036	2,093	2,152	2,211	2,272
Cash Flow After Taxes	-14,250	11,200	11,371	11,546	11,725	11,907

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 5 years. Below is the resale price calculated using different methods.

Appreciation (3.00%)	$ 414,027
Cap Rate (3.71%) & NOI	$ 382,175
Gross Rent Multiplier	$ 414,561

Sale Proceeds

Projected Selling Price	$ 414,027
Costs of Sale (6.00%)	$ 24,842
1. Loan Balance Payoff	$ 237,500
Net Sale Proceeds Before Tax	$ 151,685

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	$ 151,685
Investor Cash Outlay	$ 14,250
Net Assets	$ 137,435
Average Yield
Annual Net Assets	$ 27,487
Average Cash Flow (After Taxes)	$ 9,168
Average Annual Gain (After Taxes)	$ 36,655
Average Annual Yield (After Taxes)	20.95 %

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.

Lender Summary

Financing of: Purchase + Repairs
Type: Amortized
Amortization: 30 years

Loan Assumptions		% of ARV
After Repair Value	$ 357,143	100.00 %
Purchase Price	$ 175,000	49.00 %
Purchase Costs	$ 1,750	0.49 %
Repair Costs	$ 75,000	21.00 %
Holding Costs	$ 0	0.00 %
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 251,750	70.49 %
Financed Amount	$ 250,000	70.00 %
Down payment (5%)	$ 12,500	3.50 %
Loan Amount	$ 237,500	66.50 %

Lender Returns
Total Income to Lender	$ 0
Lender's ROI	0.00 %
Lender's Annualized ROI	0.00 %

Property Report: 1617 Caldwell St, Dallas RENTAL

Property Report :

1617 Caldwell St, Dallas, TX 75223

Executive Summary