Ramona Ave - Market rents: 1719 E RAMONA AVE S, Salt Lake City UT 84108 | Zilculator: Real Estate Analysis & Marketing

1719 E RAMONA AVE S, Salt Lake City, UT 84108

Multifamily: 6 bedrooms

Year built: 1951, Size: 3440 SF

Investment strategy: Rental Property

Great opportunity for Investors! You will not want to miss this fantastic opportunity!!! Located in the heart of Sugarhouse, this beautiful side by side duplex is only minutes from the University of Utah and Westminster. This rare find has recently had the original hardwood floors beautifully refinished, updated kitchens & baths, new paint, updated furnaces and on-demand water heaters. Each unit has its own washer/dryer hookups. Large yard with mature trees, and a detached 2 car garage. Plenty of square footage to customize for high rentability. - This Duplex is well built - new main water line to each unit with separate shut-off valves, updated pex water lines (each unit). - Square footage figures are provided as a courtesy estimate only. Buyer & Buyer's representative are advised to obtain an independent measurement. Seller is a licensed agent. Also listed under Residential MLS # .

Purchase Price$ 999,000

Rent$ 5,390/mo

Monthly Cash Flow$ 1,447

Cash on Cash Return3.42 %

Financial Analysis

Cash on Cash Return	3.42 %
Internal Rate of Return (IRR)	8.10 %
Capitalization Rate	5.34 %
Gross Rent Multiplier (GRM)	15.45
Debt-coverage Ratio (DCR)	1.48
Operating Expense Ratio (OER)	16.76 %

Financial Breakdown

Purchase Price	$ 999,000
Purchase Costs	$ 9,000
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).	$ 1,008,000
Financing	$ 499,500
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 508,500
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.	$ 499,500
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.	$ 9,000

Operating Analysis

Rent	$ 5,390/mo
Gross Operating Income (GOI)	$ 64,033
Total Expenses	$ 10,730
Net Operating Income (NOI)	$ 53,303
Annual Debt Service	$ 35,937
Cash Flow Before Taxes (CFBT)	$ 17,366
Income Tax Liability	$ -1,390
Cash Flow After Taxes (CFAT)	$ 18,757

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.	$ 64,680
Total Gross Income	$ 64,680
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.	$ 647
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.	$ 64,033	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	$ 5,699	8.90 %
Insurance	$ 80	0.12 %
Repairs	$ 1,921	3.00 %
Property tax	$ 3,030	4.73 %
Total Expenses	$ 10,730	16.76 %
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.	$ 53,303	83.24 %

Cash Flow (Year 1)

Net Operating Income	$ 53,303	83.24 %
Annual Debt Service	$ 35,937	56.12 %
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.	$ 17,366	27.12 %
Income Tax Liability	$ -1,390	-2.17 %
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.	$ 18,757	29.29 %

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).	16.76 %
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.	72.88 %

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.	$ 438,661
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.	8.10 %
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	1.86
Annual Depreciation	$ 29,062

Holding period of 30 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.	3.42 %
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.	9.31 %
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.	5.34 %
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.	6.47 %
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.	15.45

Financing
Down Payment		$ 499,500
Conventional		$ 499,500
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.		50.00 %
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).		50.00 %
Debt Coverage Ratio		1.48

Conventional Financing of: Purchase price ($ 999,000)
Type	Amortized
Loan Amount	$ 499,500
Down payment (50%)	$ 499,500
Amortization	30 years
Interest Rate	6.00 %
Monthly Payment	$ 2,994.75

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	16	17	18	19	20	21	22	23	24	25	26	27	28	29	30
Operational Analysis
Gross Scheduled Income	0	64,680	65,974	67,293	68,639	70,012	71,412	72,840	74,297	75,783	77,299	78,845	80,421	82,030	83,670	85,344	87,051	88,792	90,568	92,379	94,227	96,111	98,033	99,994	101,994	104,034	106,114	108,237	110,401	112,609	114,862
Vacancy Loss	0	647	660	673	686	700	714	728	743	758	773	788	804	820	837	853	871	888	906	924	942	961	980	1,000	1,020	1,040	1,061	1,082	1,104	1,126	1,149
Gross Operating Income	0	64,033	65,314	66,620	67,953	69,312	70,698	72,112	73,554	75,025	76,526	78,056	79,617	81,210	82,834	84,490	86,180	87,904	89,662	91,455	93,284	95,150	97,053	98,994	100,974	102,993	105,053	107,154	109,297	111,483	113,713
Expenses	0	10,730	10,945	11,163	11,387	11,614	11,847	12,084	12,325	12,572	12,823	13,080	13,341	13,608	13,880	14,158	14,441	14,730	15,025	15,325	15,632	15,944	16,263	16,588	16,920	17,258	17,604	17,956	18,315	18,681	19,055
Net Operating Income	0	53,303	54,369	55,457	56,566	57,697	58,851	60,028	61,229	62,453	63,702	64,976	66,276	67,601	68,953	70,333	71,739	73,174	74,637	76,130	77,653	79,206	80,790	82,406	84,054	85,735	87,450	89,199	90,983	92,802	94,658
Loan Payment	0	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937	35,937
Payment Interest Part	0	29,803	29,425	29,023	28,597	28,144	27,663	27,153	26,611	26,036	25,425	24,777	24,089	23,358	22,582	21,758	20,884	19,955	18,970	17,923	16,812	15,633	14,380	13,051	11,639	10,140	8,549	6,860	5,067	3,163	1,141
Payment Principal Part	0	6,134	6,512	6,914	7,340	7,793	8,274	8,784	9,326	9,901	10,512	11,160	11,848	12,579	13,355	14,179	15,053	15,982	16,967	18,014	19,125	20,305	21,557	22,886	24,298	25,797	27,388	29,077	30,870	32,774	34,796
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-508,500	17,366	18,432	19,520	20,629	21,760	22,914	24,091	25,292	26,516	27,765	29,039	30,339	31,664	33,016	34,395	35,802	37,237	38,700	40,193	41,716	43,269	44,853	46,469	48,117	49,798	51,513	53,262	55,046	56,865	58,721
Depreciation	0	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062	29,062
Taxes	0	-1,390	-1,029	-657	-273	123	531	953	1,389	1,839	2,304	2,784	3,281	3,795	4,327	4,878	5,448	6,039	6,651	7,286	7,945	8,628	9,337	10,073	10,838	11,633	12,460	13,319	14,213	15,144	16,114
Cash Flow After Taxes	-508,500	18,757	19,462	20,177	20,902	21,637	22,383	23,138	23,903	24,677	25,462	26,255	27,058	27,869	28,689	29,517	30,354	31,198	32,049	32,907	33,771	34,641	35,516	36,395	37,279	38,165	39,053	39,942	40,832	41,721	42,607

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 30 years. Below is the resale price calculated using different methods.

Appreciation (3.00%)	$ 2,424,835
Cap Rate (5.34%) & NOI	$ 1,772,627
Gross Rent Multiplier	$ 1,774,612

Sale Proceeds

Projected Selling Price	$ 2,424,835
Costs of Sale (6.00%)	$ 145,490
Net Sale Proceeds Before Tax	$ 2,279,345

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	$ 2,279,345
Investor Cash Outlay	$ 508,500
Net Assets	$ 1,770,845
Average Yield
Annual Net Assets	$ 59,028
Average Cash Flow (After Taxes)	$ 28,790
Average Annual Gain (After Taxes)	$ 87,818
Average Annual Yield (After Taxes)	8.79 %

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: Ramona Ave - Market rents RENTAL

Property Report :

Ramona Ave - Market rents

1719 E RAMONA AVE S, Salt Lake City, UT 84108

Executive Summary

1719 E RAMONA AVE S, Salt Lake City, UT 84108

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

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