203 W Lambert St, San Antonio TX 78204

203 W Lambert St, San Antonio, TX 78204

Multifamily: 4 bedrooms , 2 bathrooms

Year built: 1949, Size: 1116 SF

Investment strategy: Rental Property

Purchase Price$ 225,000

Rent$ 2,000/mo

Monthly Cash Flow$ 311

Cash on Cash Return7.70 %

Financial Analysis

Cash on Cash Return	7.70 %
Internal Rate of Return (IRR)	18.31 %
Capitalization Rate	5.71 %
Gross Rent Multiplier (GRM)	9.38
Debt-coverage Ratio (DCR)	1.41
Operating Expense Ratio (OER)	43.68 %

Financial Breakdown

Purchase Price	$ 225,000
Purchase Costs	$ 3,500
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).	$ 228,500
Financing	$ 180,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 48,500
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.	$ 45,000
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.	$ 3,500

Operating Analysis

Rent	$ 2,000/mo
Gross Operating Income (GOI)	$ 22,800
Total Expenses	$ 9,960
Net Operating Income (NOI)	$ 12,840
Annual Debt Service	$ 9,107
Cash Flow Before Taxes (CFBT)	$ 3,733
Income Tax Liability	$ 237
Cash Flow After Taxes (CFAT)	$ 3,497

Fully occupied duplex in the middle of San Antonio's Lone Star District. Leased until May 2022, and complete with new foundation, plumbing and remodeled 2 bedroom, 1 bath units. Currently rented at $1, 000 each side with rents continuing to rise in the area. This property is surrounded by an abundance of development, new eateries, and steps away from the vibrant Southtown of San Antonio. The investor's dream property is one phone call away.

Purchase Price	$ 225,000
Address	203 W Lambert St , San Antonio, 78204, TX
MLS^® #	1553405
Listing Agent	Lance Duran
Listing Broker	Real Broker, Llc
Year Built	1949
Type	Multifamily
Number of Units
Size	1116 SF
Bedrooms	4
Bathrooms	2

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.	$ 24,000
Total Gross Income	$ 24,000
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.	$ 1,200
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.	$ 22,800	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	$ 2,280	10.00 %
Repairs	$ 1,140	5.00 %
Property tax	$ 1,140	5.00 %
Property tax	$ 3,288	14.42 %
Insurance	$ 2,112	9.26 %
Total Expenses	$ 9,960	43.68 %
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.	$ 12,840	56.32 %

Cash Flow (Year 1)

Net Operating Income	$ 12,840	56.32 %
Annual Debt Service	$ 9,107	39.94 %
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.	$ 3,733	16.37 %
Income Tax Liability	$ 237	1.04 %
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.	$ 3,497	15.34 %

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).	43.68 %
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.	83.63 %

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.	$ 34,736
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.	18.31 %
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	1.72
Annual Depreciation	$ 6,545

Holding period of 5 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.	7.70 %
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.	21.62 %
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.	5.71 %
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.	10.67 %
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.	9.38

Financing
Down Payment		$ 45,000
Loan		$ 180,000
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		1.41

Loan Financing of: Purchase price ($ 225,000)
Type	Amortized
Loan Amount	$ 180,000
Down payment (20%)	$ 45,000
Amortization	30 years
Interest Rate	3.00 %
Monthly Payment	$ 758.89

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
Operational Analysis
Gross Scheduled Income	0	24,000	24,480	24,970	25,469	25,978
Vacancy Loss	0	1,200	1,224	1,248	1,273	1,299
Gross Operating Income	0	22,800	23,256	23,721	24,196	24,679
Expenses	0	9,960	10,159	10,362	10,570	10,781
Net Operating Income	0	12,840	13,097	13,359	13,626	13,898
Loan Payment	0	9,107	9,107	9,107	9,107	9,107
Payment Interest Part	0	5,349	5,234	5,117	4,995	4,870
Payment Principal Part	0	3,758	3,872	3,990	4,111	4,237
Cash Flow
Repairs/Construction	0	0	0	0	0	0
Cash Flow Before Taxes	-48,500	3,733	3,990	4,252	4,519	4,792
Depreciation	0	6,545	6,545	6,545	6,545	6,545
Taxes	0	237	329	424	521	621
Cash Flow After Taxes	-48,500	3,497	3,661	3,828	3,998	4,171

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 5 years. Below is the resale price calculated using different methods.

Appreciation (3.00%)	$ 260,837
Cap Rate (5.71%) & NOI	$ 243,405
Gross Rent Multiplier	$ 243,677

Sale Proceeds

Projected Selling Price	$ 260,837
Costs of Sale (6.00%)	$ 15,650
1. Loan Balance Payoff	$ 160,031
Net Sale Proceeds Before Tax	$ 85,155

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	$ 85,155
Investor Cash Outlay	$ 48,500
Net Assets	$ 36,655
Average Yield
Annual Net Assets	$ 7,331
Average Cash Flow (After Taxes)	$ 2,997
Average Annual Gain (After Taxes)	$ 10,328
Average Annual Yield (After Taxes)	4.59 %

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: 203 W Lambert St, San Antonio RENTAL

Property Report :

203 W Lambert St, San Antonio, TX 78204

Executive Summary