Lutz - Cloverdale: 1943 Cloverdale Ct, Lutz FL 33549 | Zilculator: Real Estate Analysis & Marketing

1943 Cloverdale Ct, Lutz, FL 33549

Singlefamily: 3 bedrooms , 2 bathrooms

Year built: 1994, Size: 1223 SF

Investment strategy: Rental Property

Purchase Price$ 270,000

Rent$ 1,850/mo

Monthly Cash Flow$ 104

Cash on Cash Return1.99 %

Financial Analysis

Cash on Cash Return	1.99 %
Internal Rate of Return (IRR)	12.41 %
Capitalization Rate	5.05 %
Gross Rent Multiplier (GRM)	12.16
Debt-coverage Ratio (DCR)	1.10
Operating Expense Ratio (OER)	36.06 %

Financial Breakdown

Purchase Price	$ 270,000
Purchase Costs	$ 9,000
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).	$ 279,000
Financing	$ 216,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 63,000
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.	$ 54,000
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.	$ 9,000

Operating Analysis

Rent	$ 1,850/mo
Gross Operating Income (GOI)	$ 21,312
Total Expenses	$ 7,685
Net Operating Income (NOI)	$ 13,627
Annual Debt Service	$ 12,375
Cash Flow Before Taxes (CFBT)	$ 1,252
Income Tax Liability	$ -700
Cash Flow After Taxes (CFAT)	$ 1,952

Absolutely mint condition Move in Ready! New roof, new paint inside and out, new cabinets and granite countertops in kitchen and both bathrooms. 3 bedroom, 2 bath, 2 car garage located on a quiet cul-de-sac with huge pie shaped lot with a vinyl fence. French doors lead out to the oversized screened lanai and a beautifully landscaped private backyard. Spacious open greatroom with vaulted ceilings and ceiling fans.. The kitchen has upgraded stainless steel appliances and an extra fridge in the garage. Large master bedroom with master bath with step in shower. The 2nd and 3rd bedrooms are a nice size. There are no CDD fees and the HOA fees are only $270 per year!! Close to everything! Shopping, Restaurants, Malls and all major roadways! GREAT LOCATION!

Purchase Price	$ 270,000
Address	1943 Cloverdale Ct , Lutz, 33549, FL
MLS^® #	T3318092
Listing Agent	BOB BEVERLY PEERCY
Listing Broker	Dennis Realty & Investment Corp.
Year Built	1994
Type	Singlefamily
Size	1223 SF
Bedrooms	3
Bathrooms	2

Property History

Date	Price	Change	Event
3/4/1994

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.	$ 22,200
Total Gross Income	$ 22,200
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.	$ 888
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.	$ 21,312	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	$ 1,705	8.00 %
Repairs	$ 1,705	8.00 %
Association fees	$ 264	1.24 %
Property tax	$ 2,799	13.13 %
Insurance	$ 1,212	5.69 %
Total Expenses	$ 7,685	36.06 %
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.	$ 13,627	63.94 %

Cash Flow (Year 1)

Net Operating Income	$ 13,627	63.94 %
Annual Debt Service	$ 12,375	58.06 %
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.	$ 1,252	5.88 %
Income Tax Liability	$ -700	-3.28 %
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.	$ 1,952	9.16 %

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).	36.06 %
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.	94.12 %

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.	$ 91,540
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.	12.41 %
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	2.45
Annual Depreciation	$ 7,855

Holding period of 15 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.	1.99 %
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.	14.85 %
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.	5.05 %
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.	8.22 %
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.	12.16

Financing
Down Payment		$ 54,000
Loan		$ 216,000
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		1.10

Loan Financing of: Purchase price ($ 270,000)
Type	Amortized
Loan Amount	$ 216,000
Down payment (20%)	$ 54,000
Amortization	30 years
Interest Rate	4.00 %
Monthly Payment	$ 1,031.22

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
Operational Analysis
Gross Scheduled Income	0	22,200	22,644	23,097	23,559	24,030	24,511	25,001	25,501	26,011	26,531	27,062	27,603	28,155	28,718	29,292
Vacancy Loss	0	888	906	924	942	961	980	1,000	1,020	1,040	1,061	1,082	1,104	1,126	1,149	1,172
Gross Operating Income	0	21,312	21,738	22,173	22,616	23,069	23,530	24,001	24,481	24,970	25,470	25,979	26,499	27,029	27,569	28,121
Expenses	0	7,685	7,839	7,995	8,155	8,318	8,485	8,654	8,828	9,004	9,184	9,368	9,555	9,746	9,941	10,140
Net Operating Income	0	13,627	13,900	14,178	14,461	14,750	15,045	15,346	15,653	15,966	16,286	16,611	16,944	17,282	17,628	17,981
Loan Payment	0	12,375	12,375	12,375	12,375	12,375	12,375	12,375	12,375	12,375	12,375	12,375	12,375	12,375	12,375	12,375
Payment Interest Part	0	8,571	8,416	8,255	8,087	7,912	7,730	7,541	7,344	7,139	6,926	6,704	6,473	6,232	5,982	5,722
Payment Principal Part	0	3,804	3,959	4,120	4,288	4,463	4,644	4,834	5,031	5,236	5,449	5,671	5,902	6,142	6,393	6,653
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-63,000	1,252	1,525	1,803	2,087	2,376	2,671	2,972	3,279	3,592	3,911	4,237	4,569	4,908	5,253	5,606
Depreciation	0	7,855	7,855	7,855	7,855	7,855	7,855	7,855	7,855	7,855	7,855	7,855	7,855	7,855	7,855	7,855
Taxes	0	-700	-593	-483	-370	-254	-135	-12	114	243	376	513	654	799	948	1,101
Cash Flow After Taxes	-63,000	1,952	2,118	2,286	2,457	2,630	2,806	2,984	3,165	3,349	3,535	3,724	3,915	4,109	4,306	4,505

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 15 years. Below is the resale price calculated using different methods.

Appreciation (3.00%)	$ 420,651
Cap Rate (5.05%) & NOI	$ 356,052
Gross Rent Multiplier	$ 356,196

Sale Proceeds

Projected Selling Price	$ 420,651
Costs of Sale (6.00%)	$ 25,239
1. Loan Balance Payoff	$ 139,412
Net Sale Proceeds Before Tax	$ 255,999

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	$ 255,999
Investor Cash Outlay	$ 63,000
Net Assets	$ 192,999
Average Yield
Annual Net Assets	$ 12,867
Average Cash Flow (After Taxes)	$ 2,889
Average Annual Gain (After Taxes)	$ 15,756
Average Annual Yield (After Taxes)	5.84 %

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: Lutz - Cloverdale RENTAL

Property Report :

Lutz - Cloverdale

1943 Cloverdale Ct, Lutz, FL 33549

Executive Summary

1943 Cloverdale Ct, Lutz, FL 33549

Financial Analysis

Financial Breakdown

Total Capital Needed

Total Capital Needed

Cash out of Pocket

Cash out of Pocket

Cash at Closing

Cash at Closing

Cash During Rehab

Cash During Rehab

Operating Analysis

Property Description

Property History

Operating Analysis

Annual Property Operating Data

Gross Scheduled Income (GSI)

Gross Scheduled Income (GSI)

Vacancy and Credit Loss

Vacancy and Credit Loss

Gross Operating Income (GOI)

Gross Operating Income (GOI)

Operating Expenses

Operating Expenses

Net Operating Income (NOI)

Net Operating Income (NOI)

Cash Flow (Year 1)

Cash Flow

Cash Flow

Cash Flow

Cash Flow

Operating Ratios

Operating Expense Ratio

Operating Expense Ratio

Break-Even Ratio (BER)

Break-Even Ratio (BER)

Financial Analysis

Financial Measures

Net Present Value (NPV)

Net Present Value (NPV)

Internal Rate of Return (IRR)

Internal Rate of Return (IRR)

Profitability Index

Profitability Index

Investment Return Ratios

Cash on Cash Return

Cash on Cash Return

Return on Investment

Return on Investment

Capitalization Rate

Capitalization Rate

Gross Rental Yield

Gross Rental Yield

Gross Rent Multiplier (GRM)

Gross Rent Multiplier (GRM)

Financing Overview

Loan to Value Ratio

Loan to Value Ratio

Loan to Cost Ratio

Loan to Cost Ratio

Long-term Cash Flow Forecast

Resale Analysis

Resale Price Evaluation Methods

Sale Proceeds

Net Assets and Yield

Photos