2017 12TH ST W #A&B, Bradenton FL 34205

2017 12TH ST W #A&B, Bradenton, FL 34205

Multifamily: 4 bedrooms , 2 bathrooms

Year built: 1947, Size: 1749 SF

Investment strategy: Rental Property

Two very attractive cottages on one parcel (Save on property taxes!) Both are separately metered for water and electric. Updates completed. Purchased for 60,000 in 2015. Unit B Maintains Property.

Purchase Price$ 169,900

Rent$ 1,400/mo

Monthly Cash Flow$ 1,136

Cash on Cash Return7.99 %

Financial Analysis

Cash on Cash Return	7.99 %
Internal Rate of Return (IRR)	8.03 %
Capitalization Rate	8.02 %
Gross Rent Multiplier (GRM)	10.11
Debt-coverage Ratio (DCR)	0.00
Operating Expense Ratio (OER)	15.46 %

Financial Breakdown

Purchase Price	$ 169,900
Purchase Costs	$ 633
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).	$ 170,533
Financing	$ 0
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 170,533
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.	$ 170,533

Operating Analysis

Rent	$ 1,400/mo
Gross Operating Income (GOI)	$ 16,128
Total Expenses	$ 2,494
Net Operating Income (NOI)	$ 13,634
Annual Debt Service	$ 0
Cash Flow Before Taxes (CFBT)	$ 13,634
Income Tax Liability	$ 2,173
Cash Flow After Taxes (CFAT)	$ 11,461

Two very attractive cottages on one parcel (Save on property taxes!) Both are separately metered for water and electric. Numerous updates include newer CENTRAL AIR and updated electric & plumbing and ROOFS! Unit A (2 Bed/1Bath 1, 029sft) rents for $850 per month has washer/dryer hookup. Unit B (1-2Bed/1Bath 720sft) rents for $550- tenant does maintenance. Both currently rented. Approx 120x60 foot lot, newer fence for back yards. Corner lot, close to ball field, bus line and more! Sold as is with the right to inspect. Showings by appointment only, please do not walk property or disturb occupants without prior arrangements being made.

Purchase Price	$ 169,900
Address	2017 12TH ST W #A&B , Bradenton, 34205, FL
MLS^® #	A4468325
Listing Broker	Re/Max Alliance Group
Year Built	1947
Type	Multifamily
Number of Units	2
Size	1749 SF
Bedrooms	4
Bathrooms	2

Unit	Rent
A	$ 850/mo
B	$ 550/mo

2017 12TH ST W #A&B Bradenton, FL 34205

Multifamily

Bldg type
1,749

SqFt
4

Beds
2

Baths

#	Property address	Distance	Beds	Baths	SqFt	Date sold	Sale price	$/SqFt	Notes
1	2038 19th Ave W	0.6mi	4	4	1,520	12/26/2019	$ 185,000	$ 122
2	1826 13th St W	0.1mi	6	2	1,695	11/06/2019	$ 110,000	$ 65	2/1 & 4/1
3	619 21st St W	1.0mi	4	2.0	1,658	10/15/2019	$ 213,157	$ 129
Average:							$ 169,386	$ 105

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.	$ 672
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.	$ 16,128	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 tax	$ 1,247	7.73 %
Property tax	$ 1,247	7.73 %
Total Expenses	$ 2,494	15.46 %
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.	$ 13,634	84.54 %

Cash Flow (Year 1)

Net Operating Income	$ 13,634	84.54 %
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.	$ 13,634	84.54 %
Income Tax Liability	$ 2,173	13.47 %
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.	$ 11,461	71.06 %

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).	15.46 %
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.	15.46 %

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.	$ 41,919
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.	8.03 %
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	1.25
Annual Depreciation	$ 4,943

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.	7.99 %
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.	10.98 %
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.	8.02 %
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.	9.89 %
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.	10.11

Year	0	1	2	3	4	5	6	7	8	9	10
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
Vacancy Loss	0	672	685	699	713	727	742	757	772	787	803
Gross Operating Income	0	16,128	16,451	16,780	17,115	17,457	17,807	18,163	18,526	18,897	19,274
Expenses	0	2,494	2,544	2,595	2,647	2,700	2,754	2,809	2,865	2,922	2,981
Net Operating Income	0	13,634	13,907	14,185	14,468	14,758	15,053	15,354	15,661	15,974	16,294
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-170,533	13,634	13,907	14,185	14,468	14,758	15,053	15,354	15,661	15,974	16,294
Depreciation	0	4,943	4,943	4,943	4,943	4,943	4,943	4,943	4,943	4,943	4,943
Taxes	0	2,173	2,241	2,310	2,381	2,454	2,528	2,603	2,680	2,758	2,838
Cash Flow After Taxes	-170,533	11,461	11,666	11,874	12,087	12,304	12,526	12,751	12,982	13,217	13,456

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.

Gross Rent Multiplier	$ 202,984
Appreciation (3.00%)	$ 228,331
Cap Rate (8.02%) & NOI	$ 203,165

Sale Proceeds

Projected Selling Price	$ 202,984
Costs of Sale (6.00%)	$ 12,179
Net Sale Proceeds Before Tax	$ 190,805

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	$ 190,805
Investor Cash Outlay	$ 170,533
Net Assets	$ 20,272
Average Yield
Annual Net Assets	$ 2,027
Average Cash Flow (After Taxes)	$ 11,087
Average Annual Gain (After Taxes)	$ 13,114
Average Annual Yield (After Taxes)	7.72 %

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: 2017 12TH ST W #A&B, Bradenton RENTAL PUBLISHED

Property Report :

2017 12TH ST W #A&B, Bradenton, FL 34205

Executive Summary