2109 Knightsbridge Rd, Macon GA 31211

2109 Knightsbridge Rd, Macon, GA 31211

Singlefamily: 4 bedrooms , 1 bathroom

Year built: 1955, Size: 1280 SF

Investment strategy: Rental Property

Purchase Price$ 117,000

Rent$ 1,105/mo

Monthly Cash Flow$ 256

Cash on Cash Return7.24 %

Financial Analysis

Cash on Cash Return	7.24 %
Internal Rate of Return (IRR)	13.79 %
Capitalization Rate	8.67 %
Gross Rent Multiplier (GRM)	8.82
Debt-coverage Ratio (DCR)	1.43
Operating Expense Ratio (OER)	14.96 %

Financial Breakdown

Purchase Price	$ 117,000
Purchase Costs	$ 1,500
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).	$ 118,500
Financing	$ 76,050
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 42,450
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.	$ 40,950
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.	$ 1,500

Operating Analysis

Rent	$ 1,105/mo
Gross Operating Income (GOI)	$ 11,934
Total Expenses	$ 1,785
Net Operating Income (NOI)	$ 10,149
Annual Debt Service	$ 7,075
Cash Flow Before Taxes (CFBT)	$ 3,073
Income Tax Liability	$ 370
Cash Flow After Taxes (CFAT)	$ 2,704

2109 Knightsbridge Rd, Macon, GA 31211 is a single family home built in 1955. According to the Macon public records, the property at 2109 Knightsbridge Rd, Macon, GA 31211 has approximately 1280 square feet, 3 beds and 1 baths with a lot size of 0.26 acres. Nearby schools include Northeast High School and Appling Middle School.

Purchase Price	$ 117,000
Address	2109 Knightsbridge Rd , Macon, 31211, GA
Listing Agent	Lecia Wright
Listing Broker	Capital Alliance Properties, Llc
Year Built	1955
Type	Singlefamily
Size	1280 SF
Bedrooms	4
Bathrooms	1

Property History

Date	Price	Change	Event
10/17/2019
7/19/2018
7/23/2017

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.	$ 13,260
Total Gross Income	$ 13,260
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.	$ 1,326
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.	$ 11,934	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).
Repairs	$ 1,193	10.00 %
Property tax	$ 592	4.96 %
Total Expenses	$ 1,785	14.96 %
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.	$ 10,149	85.04 %

Cash Flow (Year 1)

Net Operating Income	$ 10,149	85.04 %
Annual Debt Service	$ 7,075	59.29 %
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.	$ 3,073	25.75 %
Income Tax Liability	$ 370	3.10 %
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.	$ 2,704	22.65 %

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).	14.96 %
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.	74.25 %

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.	$ 18,744
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.	13.79 %
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	1.44
Annual Depreciation	$ 3,404

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.	7.24 %
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.	15.51 %
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.	8.67 %
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.	11.33 %
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.	8.82

Financing
Down Payment		$ 40,950
Loan		$ 76,050
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.		65.00 %
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).		65.00 %
Debt Coverage Ratio		1.43

Loan Financing of: Purchase price ($ 117,000)
Type	Amortized
Loan Amount	$ 76,050
Down payment (35%)	$ 40,950
Amortization	20 years
Interest Rate	7.00 %
Monthly Payment	$ 589.61

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	13,260	13,525	13,796	14,072	14,353
Vacancy Loss	0	1,326	1,353	1,380	1,407	1,435
Gross Operating Income	0	11,934	12,173	12,416	12,664	12,918
Expenses	0	1,785	1,821	1,858	1,895	1,933
Net Operating Income	0	10,149	10,352	10,559	10,770	10,985
Loan Payment	0	7,075	7,075	7,075	7,075	7,075
Payment Interest Part	0	5,266	5,135	4,995	4,845	4,684
Payment Principal Part	0	1,809	1,940	2,080	2,231	2,392
Cash Flow
Repairs/Construction	0	0	0	0	0	0
Cash Flow Before Taxes	-42,450	3,073	3,276	3,483	3,694	3,910
Depreciation	0	3,404	3,404	3,404	3,404	3,404
Taxes	0	370	453	540	630	724
Cash Flow After Taxes	-42,450	2,704	2,823	2,943	3,064	3,185

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%)	$ 135,635
Cap Rate (8.67%) & NOI	$ 126,703
Gross Rent Multiplier	$ 126,594

Sale Proceeds

Projected Selling Price	$ 135,635
Costs of Sale (6.00%)	$ 8,138
1. Loan Balance Payoff	$ 65,598
Net Sale Proceeds Before Tax	$ 61,899

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	$ 61,899
Investor Cash Outlay	$ 42,450
Net Assets	$ 19,449
Average Yield
Annual Net Assets	$ 3,890
Average Cash Flow (After Taxes)	$ 2,307
Average Annual Gain (After Taxes)	$ 6,197
Average Annual Yield (After Taxes)	5.30 %

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: 2109 Knightsbridge Rd, Macon RENTAL

Property Report :

2109 Knightsbridge Rd, Macon, GA 31211

Executive Summary