1902 N Main Ave, Springfield MO 65803

1902 N Main Ave, Springfield, MO 65803

Singlefamily: 4 bedrooms , 2 bathrooms

Year built: 1913, Size: 1512 SF

Investment strategy: Rental Property

Purchase Price$ 100,000

Rent$ 1,400/mo

Monthly Cash Flow$ 663

Cash on Cash Return14.21 %

Financial Analysis

Cash on Cash Return	14.21 %
Internal Rate of Return (IRR)	15.00 %
Capitalization Rate	9.80 %
Gross Rent Multiplier (GRM)	7.14
Debt-coverage Ratio (DCR)	3.09
Operating Expense Ratio (OER)	27.81 %
After Repair Value	$ 120,000
Profit/Equity From Rehab	$ 14,000

Financial Breakdown

Purchase Price	$ 100,000
Purchase Costs	$ 3,500
Repair/Construction Costs	$ 2,500
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 106,000
Financing	$ 50,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 56,000
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.	$ 50,000
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.	$ 6,000

Operating Analysis

Rent	$ 1,400/mo
Gross Operating Income (GOI)	$ 16,296
Total Expenses	$ 4,533
Net Operating Income (NOI)	$ 11,763
Annual Debt Service	$ 3,808
Cash Flow Before Taxes (CFBT)	$ 7,955
Income Tax Liability	$ 1,400
Cash Flow After Taxes (CFAT)	$ 6,555

Here is your chance to own an historic Victorian home for a GREAT price! With some TLC, this beauty can come back to life! Perfect home for a flip, or rental! You will find the master on the main floor, 1 full bathroom, family/living room and large kitchen! Upstairs has 1 full bathroom, 2 bedrooms plus 1 nonconforming room that could be turned into another bedroom or an office. Seller will make no repairs.

Purchase Price	$ 100,000
Address	1902 N Main Ave , Springfield, 65803, MO
MLS^® #	60256339
Listing Agent	Ashley Stufflebeam
Year Built	1913
Type	Singlefamily
Size	1512 SF
Bedrooms	4
Bathrooms	2

Property History

Date	Price	Event
11/10/2023	100000	Listed
11/22/2021		Listing removed
11/8/2021	140000	Listed
5/18/2014	69900	Listing removed
4/29/2014	69900	Listing removed
1/28/2014	69900	Listed
1/28/2014	69900	Listed
11/7/2013	72500	Listing removed
3/27/2013	72500	Listed
12/17/2012	75000	Listing removed
8/24/2012	75000	Price Changed
7/22/2012	82500	Listed
12/23/2011	79900	Listing removed
11/2/2011	79900	Price Changed
10/2/2011	85000	Listed
8/31/1999		Sold

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.	$ 16,800
Total Gross Income	$ 16,800
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.	$ 504
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.	$ 16,296	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	$ 1,304	8.00 %
Utilities	$ 1,440	8.84 %
Insurance	$ 1,000	6.14 %
Repairs	$ 163	1.00 %
Property tax	$ 626	3.84 %
Total Expenses	$ 4,533	27.81 %
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.	$ 11,763	72.19 %

Cash Flow (Year 1)

Net Operating Income	$ 11,763	72.19 %
Annual Debt Service	$ 3,808	23.37 %
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.	$ 7,955	48.82 %
Income Tax Liability	$ 1,400	8.59 %
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.	$ 6,555	40.22 %

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).	27.81 %
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.	51.18 %

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.	$ 126,512
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.	15.00 %
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	3.26
Annual Depreciation	$ 2,909

Holding period of 25 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.	14.21 %
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.	19.56 %
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.	9.80 %
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.	16.80 %
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.	7.14

Financing		% of ARV
Down Payment	$ 50,000	41.67 %
50% down	$ 50,000	41.67 %
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).		48.78 %
Debt Coverage Ratio		3.09

50% down Financing of: Purchase price ($ 100,000)
Type	Amortized
Loan Amount	$ 50,000
Down payment (50%)	$ 50,000
Amortization	30 years
Interest Rate	6.54 %
Monthly Payment	$ 317.35

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
Operational Analysis
Gross Scheduled Income	0	16,800	17,136	17,479	17,828	18,185	18,549	18,920	19,298	19,684	20,078	20,479	20,889	21,306	21,733	22,167	22,611	23,063	23,524	23,995	24,474	24,964	25,463	25,972	26,492	27,022
Vacancy Loss	0	504	514	524	535	546	556	568	579	591	602	614	627	639	652	665	678	692	706	720	734	749	764	779	795	811
Gross Operating Income	0	16,296	16,622	16,954	17,293	17,639	17,992	18,352	18,719	19,093	19,475	19,865	20,262	20,667	21,081	21,502	21,932	22,371	22,818	23,275	23,740	24,215	24,699	25,193	25,697	26,211
Expenses	0	4,533	4,623	4,716	4,810	4,906	5,004	5,105	5,207	5,311	5,417	5,525	5,636	5,749	5,863	5,981	6,100	6,222	6,347	6,474	6,603	6,735	6,870	7,007	7,148	7,291
Net Operating Income	0	11,763	11,999	12,239	12,483	12,733	12,988	13,247	13,512	13,783	14,058	14,339	14,626	14,919	15,217	15,521	15,832	16,149	16,472	16,801	17,137	17,480	17,829	18,186	18,550	18,921
Loan Payment	0	3,808	3,808	3,808	3,808	3,808	3,808	3,808	3,808	3,808	3,808	3,808	3,808	3,808	3,808	3,808	3,808	3,808	3,808	3,808	3,808	3,808	3,808	3,808	3,808	3,808
Payment Interest Part	0	3,254	3,216	3,176	3,134	3,088	3,040	2,988	2,933	2,874	2,811	2,743	2,672	2,595	2,513	2,426	2,333	2,233	2,127	2,014	1,893	1,764	1,626	1,479	1,322	1,155
Payment Principal Part	0	555	592	632	675	720	768	820	876	935	998	1,065	1,137	1,213	1,295	1,382	1,475	1,575	1,681	1,794	1,915	2,044	2,182	2,329	2,486	2,654
Cash Flow
Repairs/Construction	2,500	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	-56,000	7,955	8,190	8,430	8,675	8,925	9,179	9,439	9,704	9,974	10,250	10,531	10,818	11,111	11,409	11,713	12,024	12,340	12,663	12,993	13,329	13,671	14,021	14,378	14,741	15,112
Depreciation	0	2,909	2,909	2,909	2,909	2,909	2,909	2,909	2,909	2,909	2,909	2,909	2,909	2,909	2,909	2,909	2,909	2,909	2,909	2,909	2,909	2,909	2,909	2,909	2,909	2,909
Taxes	0	1,400	1,468	1,538	1,610	1,684	1,760	1,838	1,918	2,000	2,085	2,172	2,261	2,354	2,449	2,547	2,648	2,752	2,859	2,969	3,084	3,202	3,324	3,449	3,580	3,714
Cash Flow After Taxes	-56,000	6,555	6,722	6,892	7,065	7,241	7,420	7,602	7,786	7,974	8,165	8,359	8,557	8,757	8,960	9,167	9,376	9,589	9,805	10,023	10,245	10,470	10,698	10,928	11,162	11,398

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 25 years. Below is the resale price calculated using different methods.

Appreciation (3.00%)	$ 251,253
Cap Rate (9.80%) & NOI	$ 193,067
Gross Rent Multiplier	$ 192,935

Sale Proceeds

Projected Selling Price	$ 251,253
Costs of Sale (6.00%)	$ 15,075
1. Loan Balance Payoff	$ 16,204
Net Sale Proceeds Before Tax	$ 219,974

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	$ 219,974
Investor Cash Outlay	$ 56,000
Net Assets	$ 163,974
Average Yield
Annual Net Assets	$ 6,559
Average Cash Flow (After Taxes)	$ 8,381
Average Annual Gain (After Taxes)	$ 14,940
Average Annual Yield (After Taxes)	14.94 %

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: 1902 N Main Ave, Springfield RENTAL

Property Report :

1902 N Main Ave, Springfield, MO 65803

Executive Summary