1910 Binney St, Omaha NE 68110

1910 Binney St, Omaha, NE 68110

Multifamily: 18 rooms: 6 bedrooms , 5 bathrooms

Year built: 1907, Size: 4587 SF

Investment strategy: Rental Property

Purchase Price$ 150,000

Rent$ 3,500/mo

Monthly Cash Flow$ 1,750

Cash on Cash Return11.76 %

Financial Analysis

Cash on Cash Return	11.76 %
Internal Rate of Return (IRR)	11.67 %
Capitalization Rate	11.05 %
Gross Rent Multiplier (GRM)	4.52
Debt-coverage Ratio (DCR)	0.00
Operating Expense Ratio (OER)	50.00 %
After Repair Value	$ 190,000
Profit/Equity From Rehab	$ 11,500

Financial Breakdown

Purchase Price	$ 150,000
Purchase Costs	$ 3,500
Repair/Construction Costs	$ 25,000
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 178,500
Financing	$ 0
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 178,500
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.	$ 0
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.	$ 178,500

Operating Analysis

Rent	$ 3,500/mo
Gross Operating Income (GOI)	$ 42,000
Total Expenses	$ 21,000
Net Operating Income (NOI)	$ 21,000
Annual Debt Service	$ 0
Cash Flow Before Taxes (CFBT)	$ 21,000
Income Tax Liability	$ 4,159
Cash Flow After Taxes (CFAT)	$ 16,841

1910 Binney St, Omaha, NE 68110 is a multi family home built in 1907. Nearby schools include Central High School, Lothrop Magnet Center and King Science/Tech Magnet Middle School.

Purchase Price	$ 150,000
Address	1910 Binney St , Omaha, 68110, NE
Listing Broker	CBSHOME REAL ESTATE - Brentwood
Year Built	1907
Type	Multifamily
Number of Units	5
Size	4587 SF
Bedrooms	6
Bathrooms	5
Rooms Total	18

Property History

Date	Price	Change	Event
9/17/2010

Unit	Rent
Unit 1	$ 700/mo
Unit 2	$ 700/mo
Unit 3	$ 700/mo
Unit 4	$ 700/mo
Unit 5	$ 700/mo

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.	$ 42,000
Total Gross Income	$ 42,000
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.	$ 42,000	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	$ 21,000	50.00 %
Total Expenses	$ 21,000	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.	$ 21,000	50.00 %

Cash Flow (Year 1)

Net Operating Income	$ 21,000	50.00 %
Annual Debt Service	$ 0	0.00 %
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.	$ 21,000	50.00 %
Income Tax Liability	$ 4,159	9.90 %
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.	$ 16,841	40.10 %

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.	50.00 %

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.	$ 217,955
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.	11.67 %
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	2.22
Annual Depreciation	$ 4,364

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.	11.76 %
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.	14.29 %
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.	11.05 %
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.	28.00 %
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.	4.52

There is no financing selected in this deal.

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	42,000	42,840	43,697	44,571	45,462	46,371	47,299	48,245	49,210	50,194	51,198	52,222	53,266	54,331	55,418	56,526	57,657	58,810	59,986	61,186	62,410	63,658	64,931	66,230	67,554
Vacancy Loss	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
Gross Operating Income	0	42,000	42,840	43,697	44,571	45,462	46,371	47,299	48,245	49,210	50,194	51,198	52,222	53,266	54,331	55,418	56,526	57,657	58,810	59,986	61,186	62,410	63,658	64,931	66,230	67,554
Expenses	0	21,000	21,420	21,848	22,285	22,731	23,186	23,649	24,122	24,605	25,097	25,599	26,111	26,633	27,166	27,709	28,263	28,829	29,405	29,993	30,593	31,205	31,829	32,466	33,115	33,777
Net Operating Income	0	21,000	21,420	21,848	22,285	22,731	23,186	23,649	24,122	24,605	25,097	25,599	26,111	26,633	27,166	27,709	28,263	28,829	29,405	29,993	30,593	31,205	31,829	32,466	33,115	33,777
Cash Flow
Repairs/Construction	25,000	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	-178,500	21,000	21,420	21,848	22,285	22,731	23,186	23,649	24,122	24,605	25,097	25,599	26,111	26,633	27,166	27,709	28,263	28,829	29,405	29,993	30,593	31,205	31,829	32,466	33,115	33,777
Depreciation	0	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364
Taxes	0	4,159	4,264	4,371	4,480	4,592	4,705	4,821	4,940	5,060	5,183	5,309	5,437	5,567	5,700	5,836	5,975	6,116	6,260	6,407	6,557	6,710	6,866	7,025	7,188	7,353
Cash Flow After Taxes	-178,500	16,841	17,156	17,477	17,805	18,139	18,480	18,828	19,183	19,545	19,914	20,290	20,674	21,066	21,465	21,873	22,288	22,712	23,145	23,586	24,036	24,495	24,963	25,440	25,927	26,424

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%)	$ 397,818
Cap Rate (11.05%) & NOI	$ 305,676
Gross Rent Multiplier	$ 305,346

Sale Proceeds

Projected Selling Price	$ 397,818
Costs of Sale (6.00%)	$ 23,869
Net Sale Proceeds Before Tax	$ 373,949

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	$ 373,949
Investor Cash Outlay	$ 178,500
Net Assets	$ 195,449
Average Yield
Annual Net Assets	$ 7,818
Average Cash Flow (After Taxes)	$ 20,213
Average Annual Gain (After Taxes)	$ 28,031
Average Annual Yield (After Taxes)	18.69 %

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: 1910 Binney St, Omaha RENTAL

Property Report :

1910 Binney St, Omaha, NE 68110

Executive Summary