1668 Route 9 Apt 10L, Wappingers Falls NY 12590

1668 Route 9 Apt 10L, Wappingers Falls, NY 12590

Condominium: 3 bedrooms , 2 bathrooms

Year built: 1968, Size: 1995 SF

Investment strategy: Rental Property

Purchase Price$ 219,000

Rent$ 2,300/mo

Monthly Cash Flow$ 322

Cash on Cash Return8.35 %

Financial Analysis

Cash on Cash Return	8.35 %
Internal Rate of Return (IRR)	16.36 %
Capitalization Rate	6.35 %
Gross Rent Multiplier (GRM)	7.93
Debt-coverage Ratio (DCR)	1.38
Operating Expense Ratio (OER)	48.08 %

Financial Breakdown

Purchase Price	$ 219,000
Purchase Costs	$ 2,500
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).	$ 221,500
Financing	$ 175,200
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 46,300
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.	$ 43,800
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.	$ 2,500

Operating Analysis

Rent	$ 2,300/mo
Gross Operating Income (GOI)	$ 26,772
Total Expenses	$ 12,871
Net Operating Income (NOI)	$ 13,901
Annual Debt Service	$ 10,037
Cash Flow Before Taxes (CFBT)	$ 3,864
Income Tax Liability	$ 145
Cash Flow After Taxes (CFAT)	$ 3,719

Hard-To-Find & Move-In Ready 3 Finished Level Townhome offers 3 Beds & 3 Baths in Woodhill Green Complex - Right off Route 9 & close to everything! Recent updates include new appliances, new plank flooring, new main hall full bath, new carpet in lower level & new windows. Monthly HOA fee INCLUDES heat, hot water, water/sewer, cooking gas, snow plowing, garbage removal, maintenance of lawn & surrounding areas, playground, tennis court & pool. Enter into the welcoming main level to spacious living room/dining room, bright sunny kitchen & 1/2 bath. Upper level offer three large bedrooms - Master bedroom with half-bath, 2 additional large bedrooms and full bath. Don't miss the cozy, finished lower level family room with laundry room & walk-out slider. Sparkly clean & ideally located in Wappingers Falls easy access to the Village, shopping, restaurants & Metro North! Reserved parking space & plenty of visitor parking. Stop paying rent! Call today & take advantage of this opportunity to own your own home & enjoy easy living in the beautiful Hudson Valley!

Purchase Price	$ 219,000
Address	1668 Route 9 Apt 10L , Wappingers Falls, 12590, NY
MLS^® #	404998
Listing Agent	Susan Stevens
Listing Broker	Berkshire Hathaway HomeServices Hudson Valley Properties
Year Built	1968
Type	Condominium
Size	1995 SF
Bedrooms	3
Bathrooms	2

Property History

Date	Price	Change	Event
6/21/2017
6/17/1999
6/25/1990

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.	$ 27,600
Total Gross Income	$ 27,600
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.	$ 828
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.	$ 26,772	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).
Association fees	$ 8,400	31.38 %
Property tax	$ 3,559	13.29 %
Insurance	$ 912	3.41 %
Total Expenses	$ 12,871	48.08 %
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.	$ 13,901	51.92 %

Cash Flow (Year 1)

Net Operating Income	$ 13,901	51.92 %
Annual Debt Service	$ 10,037	37.49 %
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.	$ 3,864	14.43 %
Income Tax Liability	$ 145	0.54 %
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.	$ 3,719	13.89 %

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).	48.08 %
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.	85.57 %

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.	$ 104,154
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.	16.36 %
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	3.25
Annual Depreciation	$ 6,371

Holding period of 15 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.	8.35 %
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.	22.54 %
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.	6.35 %
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.	12.60 %
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.	7.93

Financing
Down Payment		$ 43,800
Loan		$ 175,200
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		1.38

Loan Financing of: Purchase price ($ 219,000)
Type	Amortized
Loan Amount	$ 175,200
Down payment (20%)	$ 43,800
Amortization	30 years
Interest Rate	4.00 %
Monthly Payment	$ 836.43

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	11	12	13	14	15
Operational Analysis
Gross Scheduled Income	0	27,600	28,152	28,715	29,289	29,875	30,473	31,082	31,704	32,338	32,985	33,644	34,317	35,003	35,704	36,418
Vacancy Loss	0	828	845	861	879	896	914	932	951	970	990	1,009	1,030	1,050	1,071	1,093
Gross Operating Income	0	26,772	27,307	27,854	28,411	28,979	29,558	30,150	30,753	31,368	31,995	32,635	33,288	33,953	34,632	35,325
Expenses	0	12,871	13,128	13,391	13,659	13,932	14,211	14,495	14,785	15,080	15,382	15,690	16,003	16,324	16,650	16,983
Net Operating Income	0	13,901	14,179	14,463	14,752	15,047	15,348	15,655	15,968	16,287	16,613	16,945	17,284	17,630	17,982	18,342
Loan Payment	0	10,037	10,037	10,037	10,037	10,037	10,037	10,037	10,037	10,037	10,037	10,037	10,037	10,037	10,037	10,037
Payment Interest Part	0	6,952	6,826	6,695	6,559	6,417	6,270	6,117	5,957	5,791	5,618	5,437	5,250	5,055	4,852	4,641
Payment Principal Part	0	3,085	3,211	3,342	3,478	3,620	3,767	3,921	4,080	4,247	4,420	4,600	4,787	4,982	5,185	5,396
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-46,300	3,864	4,142	4,425	4,715	5,010	5,311	5,618	5,931	6,250	6,576	6,908	7,247	7,593	7,945	8,305
Depreciation	0	6,371	6,371	6,371	6,371	6,371	6,371	6,371	6,371	6,371	6,371	6,371	6,371	6,371	6,371	6,371
Taxes	0	145	245	349	455	565	677	792	910	1,031	1,156	1,284	1,416	1,551	1,690	1,833
Cash Flow After Taxes	-46,300	3,719	3,896	4,076	4,259	4,445	4,634	4,826	5,021	5,219	5,420	5,624	5,831	6,042	6,255	6,472

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 15 years. Below is the resale price calculated using different methods.

Appreciation (3.00%)	$ 341,195
Cap Rate (6.35%) & NOI	$ 288,851
Gross Rent Multiplier	$ 288,792

Sale Proceeds

Projected Selling Price	$ 341,195
Costs of Sale (6.00%)	$ 20,472
1. Loan Balance Payoff	$ 113,079
Net Sale Proceeds Before Tax	$ 207,644

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	$ 207,644
Investor Cash Outlay	$ 46,300
Net Assets	$ 161,344
Average Yield
Annual Net Assets	$ 10,756
Average Cash Flow (After Taxes)	$ 4,618
Average Annual Gain (After Taxes)	$ 15,374
Average Annual Yield (After Taxes)	7.02 %

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: 1668 Route 9 Apt 10L, Wappingers Falls RENTAL

Property Report :

1668 Route 9 Apt 10L, Wappingers Falls, NY 12590

Executive Summary