1778 Courtland Ave, Cincinnati OH 45212

1778 Courtland Ave, Cincinnati, OH 45212

Multifamily:

Year built: 1895, Size: 2192 SF

Investment strategy: Rental Property

Purchase Price$ 420,000

Rent$ 3,650/mo

Monthly Cash Flow$ 953

Cash on Cash Return13.23 %

Financial Analysis

Cash on Cash Return	13.23 %
Internal Rate of Return (IRR)	20.94 %
Capitalization Rate	9.27 %
Gross Rent Multiplier (GRM)	9.59
Debt-coverage Ratio (DCR)	1.42
Operating Expense Ratio (OER)	11.08 %

Financial Breakdown

Purchase Price	$ 420,000
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).	$ 422,500
Financing	$ 336,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 86,500
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.	$ 84,000
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	$ 3,650/mo
Gross Operating Income (GOI)	$ 43,800
Total Expenses	$ 4,854
Net Operating Income (NOI)	$ 38,946
Annual Debt Service	$ 27,505
Cash Flow Before Taxes (CFBT)	$ 11,441
Income Tax Liability	$ 619
Cash Flow After Taxes (CFAT)	$ 10,822

Purchase Price	$ 420,000
Address	1778 Courtland Ave , Cincinnati, 45212, OH
MLS^® #	1776099
Listing Agent	Lisa Williams
Year Built	1895
Type	Multifamily
Number of Units	2
Size	2192 SF

Property History

Date	Price	Event
6/21/2023	1650	Listed for rent
11/19/2021		Listing removed
11/16/2021	105000	Sold
8/24/2021	107900	Price Changed
8/19/2021	109900	Listed

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.	$ 43,800
Total Gross Income	$ 43,800
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.	$ 43,800	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).
Insurance	$ 1,200	2.74 %
Repairs	$ 876	2.00 %
Property tax	$ 2,778	6.34 %
Total Expenses	$ 4,854	11.08 %
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.	$ 38,946	88.92 %

Cash Flow (Year 1)

Net Operating Income	$ 38,946	88.92 %
Annual Debt Service	$ 27,505	62.80 %
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.	$ 11,441	26.12 %
Income Tax Liability	$ 619	1.41 %
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.	$ 10,822	24.71 %

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).	11.08 %
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.	73.88 %

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.	$ 161,874
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.	20.94 %
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	2.87
Annual Depreciation	$ 12,218

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.	13.23 %
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.	27.79 %
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.	9.27 %
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.	10.43 %
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.	9.59

Financing
Down Payment		$ 84,000
Loan		$ 336,000
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		1.42

Loan Financing of: Purchase price ($ 420,000)
Type	Amortized
Loan Amount	$ 336,000
Down payment (20%)	$ 84,000
Amortization	30 years
Interest Rate	7.25 %
Monthly Payment	$ 2,292.11

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	43,800	44,676	45,570	46,481	47,411	48,359	49,326	50,312	51,319	52,345
Vacancy Loss	0	0	0	0	0	0	0	0	0	0	0
Gross Operating Income	0	43,800	44,676	45,570	46,481	47,411	48,359	49,326	50,312	51,319	52,345
Expenses	0	4,854	4,951	5,050	5,151	5,254	5,359	5,466	5,576	5,687	5,801
Net Operating Income	0	38,946	39,725	40,519	41,330	42,156	43,000	43,860	44,737	45,631	46,544
Loan Payment	0	27,505	27,505	27,505	27,505	27,505	27,505	27,505	27,505	27,505	27,505
Payment Interest Part	0	24,253	24,010	23,748	23,466	23,163	22,838	22,488	22,112	21,707	21,273
Payment Principal Part	0	3,252	3,496	3,758	4,039	4,342	4,668	5,018	5,394	5,798	6,233
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-86,500	11,441	12,220	13,014	13,824	14,651	15,494	16,354	17,231	18,126	19,039
Depreciation	0	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218
Taxes	0	619	874	1,138	1,411	1,694	1,986	2,288	2,602	2,927	3,263
Cash Flow After Taxes	-86,500	10,822	11,345	11,876	12,413	12,957	13,508	14,066	14,630	15,200	15,775

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%)	$ 564,445
Cap Rate (9.27%) & NOI	$ 502,094
Gross Rent Multiplier	$ 501,989

Sale Proceeds

Projected Selling Price	$ 564,445
Costs of Sale (6.00%)	$ 33,867
1. Loan Balance Payoff	$ 290,003
Net Sale Proceeds Before Tax	$ 240,576

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	$ 240,576
Investor Cash Outlay	$ 86,500
Net Assets	$ 154,076
Average Yield
Annual Net Assets	$ 15,408
Average Cash Flow (After Taxes)	$ 11,682
Average Annual Gain (After Taxes)	$ 27,089
Average Annual Yield (After Taxes)	6.45 %

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: 1778 Courtland Ave, Cincinnati RENTAL

Property Report :

1778 Courtland Ave, Cincinnati, OH 45212

Executive Summary