1800 Harold Pl, Columbus OH 43211

1800 Harold Pl, Columbus, OH 43211

Singlefamily: 3 bedrooms , 1 bathroom

Year built: 1942, Size: 1040 SF

Investment strategy: Rental Property

Purchase Price$ 89,000

Rent$ 950/mo

Monthly Cash Flow$ 341

Cash on Cash Return20.64 %

Financial Analysis

Cash on Cash Return	20.64 %
Internal Rate of Return (IRR)	24.41 %
Capitalization Rate	8.64 %
Gross Rent Multiplier (GRM)	7.81
Debt-coverage Ratio (DCR)	2.13
Operating Expense Ratio (OER)	29.00 %

Financial Breakdown

Purchase Price	$ 89,000
Purchase Costs	$ 2,000
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).	$ 91,000
Financing	$ 71,200
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 19,800
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.	$ 17,800
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.	$ 2,000

Operating Analysis

Rent	$ 950/mo
Gross Operating Income (GOI)	$ 10,830
Total Expenses	$ 3,141
Net Operating Income (NOI)	$ 7,689
Annual Debt Service	$ 3,602
Cash Flow Before Taxes (CFBT)	$ 4,087
Income Tax Liability	$ 746
Cash Flow After Taxes (CFAT)	$ 3,341

Great investment opportunity! Tenant is through 08/01/2022 with $950 monthly rent. Features 3 bedrooms, hardwood floor throughout with carpet in the living room. Full basement for an extra storage, Yard is spacious and fenced. Dimensional roof is about 6 years old. Don't miss this one!

Purchase Price	$ 89,000
Address	1800 Harold Pl , Columbus, 43211, OH
MLS^® #	221034597
Listing Agent	Natalie Kurpita
Listing Broker	Ross, Realtors
Year Built	1942
Type	Singlefamily
Size	1040 SF
Bedrooms	3
Bathrooms	1

Property History

Date	Price	Change	Event
6/21/2004
2/6/2004
12/16/1998

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.	$ 11,400
Total Gross Income	$ 11,400
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.	$ 570
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.	$ 10,830	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	$ 975	9.00 %
Insurance	$ 542	5.00 %
Repairs	$ 542	5.00 %
Property tax	$ 819	7.56 %
Insurance	$ 264	2.44 %
Total Expenses	$ 3,141	29.00 %
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.	$ 7,689	71.00 %

Cash Flow (Year 1)

Net Operating Income	$ 7,689	71.00 %
Annual Debt Service	$ 3,602	33.26 %
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.	$ 4,087	37.74 %
Income Tax Liability	$ 746	6.89 %
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.	$ 3,341	30.85 %

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).	29.00 %
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.	62.26 %

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.	$ 45,249
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.	24.41 %
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	3.29
Annual Depreciation	$ 2,589

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.	20.64 %
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.	34.13 %
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.	8.64 %
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.	12.81 %
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.	7.81

Financing
Down Payment		$ 17,800
Loan		$ 71,200
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		2.13

Loan Financing of: Purchase price ($ 89,000)
Type	Amortized
Loan Amount	$ 71,200
Down payment (20%)	$ 17,800
Amortization	30 years
Interest Rate	3.00 %
Monthly Payment	$ 300.18

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	11,400	11,628	11,861	12,098	12,340	12,587	12,838	13,095	13,357	13,624
Vacancy Loss	0	570	581	593	605	617	629	642	655	668	681
Gross Operating Income	0	10,830	11,047	11,268	11,493	11,723	11,957	12,196	12,440	12,689	12,943
Expenses	0	3,141	3,204	3,268	3,333	3,400	3,468	3,537	3,608	3,680	3,753
Net Operating Income	0	7,689	7,843	8,000	8,160	8,323	8,490	8,659	8,833	9,009	9,189
Loan Payment	0	3,602	3,602	3,602	3,602	3,602	3,602	3,602	3,602	3,602	3,602
Payment Interest Part	0	2,116	2,070	2,024	1,976	1,926	1,875	1,823	1,769	1,713	1,656
Payment Principal Part	0	1,487	1,532	1,578	1,626	1,676	1,727	1,779	1,833	1,889	1,947
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-19,800	4,087	4,241	4,398	4,558	4,721	4,887	5,057	5,230	5,407	5,587
Depreciation	0	2,589	2,589	2,589	2,589	2,589	2,589	2,589	2,589	2,589	2,589
Taxes	0	746	796	847	899	952	1,006	1,062	1,119	1,177	1,236
Cash Flow After Taxes	-19,800	3,341	3,445	3,551	3,659	3,769	3,881	3,995	4,112	4,230	4,351

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%)	$ 119,609
Cap Rate (8.64%) & NOI	$ 106,359
Gross Rent Multiplier	$ 106,404

Sale Proceeds

Projected Selling Price	$ 119,609
Costs of Sale (6.00%)	$ 7,177
1. Loan Balance Payoff	$ 54,126
Net Sale Proceeds Before Tax	$ 58,306

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	$ 58,306
Investor Cash Outlay	$ 19,800
Net Assets	$ 38,506
Average Yield
Annual Net Assets	$ 3,851
Average Cash Flow (After Taxes)	$ 3,398
Average Annual Gain (After Taxes)	$ 7,249
Average Annual Yield (After Taxes)	8.14 %

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: 1800 Harold Pl, Columbus RENTAL

Property Report :

1800 Harold Pl, Columbus, OH 43211

Executive Summary