Property Report :

1805 Sparrow Ln, Aubrey, TX 76227

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Real Estate Analysis

Created on: Apr 14, 2025

Author: Adam Helsten

1805 Sparrow Ln, Aubrey, TX 76227

Singlefamily: 6 rooms: 3 bedrooms , 2 bathrooms

Year built: 2010, Size: 1301 SF

Investment strategy: Rental Property

Purchase Price$ 195,000

Rent$ 1,500/mo

Monthly Cash Flow$ -203

Cash on Cash Return-20.65 %

Financial Analysis

Cash on Cash Return	-20.65 %
Internal Rate of Return (IRR)	22.71 %
Capitalization Rate	4.62 %
Gross Rent Multiplier (GRM)	10.83
Debt-coverage Ratio (DCR)	0.79
Operating Expense Ratio (OER)	50.00 %

Financial Breakdown

Purchase Price	$ 195,000
Purchase Costs	$ 5,000
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).	$ 200,000
Financing	$ 188,175
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 11,825
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.	$ 6,825
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.	$ 5,000

Operating Analysis

Rent	$ 1,500/mo
Gross Operating Income (GOI)	$ 18,000
Total Expenses	$ 9,000
Net Operating Income (NOI)	$ 9,000
Annual Debt Service	$ 11,441
Cash Flow Before Taxes (CFBT)	$ -2,441
Income Tax Liability	$ -1,270
Cash Flow After Taxes (CFAT)	$ -1,172

Purchase Price	$ 195,000
Address	1805 Sparrow Ln , Aubrey, 76227, TX
Year Built	2010
Type	Singlefamily
Size	1301 SF
Bedrooms	3
Bathrooms	2
Rooms Total	6

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.	$ 18,000
Total Gross Income	$ 18,000
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.	$ 18,000	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	$ 9,000	50.00 %
Total Expenses	$ 9,000	50.00 %
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.	$ 9,000	50.00 %

Cash Flow (Year 1)

Net Operating Income	$ 9,000	50.00 %
Annual Debt Service	$ 11,441	63.56 %
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.	$ -2,441	-13.56 %
Income Tax Liability	$ -1,270	-7.05 %
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.	$ -1,172	-6.51 %

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).	50.00 %
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.	113.56 %

Year	0	1	2	3	4	5
Operational Analysis
Gross Scheduled Income	0	18,000	18,360	18,727	19,102	19,484
Vacancy Loss	0	0	0	0	0	0
Gross Operating Income	0	18,000	18,360	18,727	19,102	19,484
Expenses	0	9,000	9,180	9,364	9,551	9,742
Net Operating Income	0	9,000	9,180	9,364	9,551	9,742
Loan Payment	0	11,441	11,441	11,441	11,441	11,441
Payment Interest Part	0	8,406	8,266	8,120	7,968	7,808
Payment Principal Part	0	3,036	3,175	3,321	3,474	3,633
Cash Flow
Repairs/Construction	0	0	0	0	0	0
Cash Flow Before Taxes	-11,825	-2,441	-2,261	-2,078	-1,891	-1,700
Depreciation	0	5,673	5,673	5,673	5,673	5,673
Taxes	0	-1,270	-1,190	-1,107	-1,023	-935
Cash Flow After Taxes	-11,825	-1,172	-1,072	-970	-868	-765

Note: All amounts in the table above are in $

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