2133 Cascade Rd, Atlanta GA 30311

2133 Cascade Rd, Atlanta, GA 30311

Investment strategy: Rental Property

Purchase Price$ 180,000

Rent$ 1,400/mo

Monthly Cash Flow$ 1,372

Cash on Cash Return7.95 %

Financial Analysis

Cash on Cash Return	7.95 %
Internal Rate of Return (IRR)	12.05 %
Capitalization Rate	6.51 %
Gross Rent Multiplier (GRM)	15.06
Debt-coverage Ratio (DCR)	0.00
Operating Expense Ratio (OER)	0.00 %
After Repair Value	$ 253,000
Profit/Equity From Rehab	$ 46,000

Financial Breakdown

Purchase Price	$ 180,000
Purchase Costs	$ 2,000
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).	$ 207,000
Financing	$ 0
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 207,000
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.	$ 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.	$ 207,000

Operating Analysis

Rent	$ 1,400/mo
Gross Operating Income (GOI)	$ 16,464
Total Expenses	$ 0
Net Operating Income (NOI)	$ 16,464
Annual Debt Service	$ 0
Cash Flow Before Taxes (CFBT)	$ 16,464
Income Tax Liability	$ 2,807
Cash Flow After Taxes (CFAT)	$ 13,657

Purchase Price	$ 180,000
Address	2133 Cascade Rd , Atlanta, 30311, GA

2133 Cascade Rd Atlanta, GA 30311

$ 253,000

Property ARV

#	Property address	Distance	Beds	Baths	SqFt	Date sold	Sale price	$/SqFt
1	2167 MONTROSE AVE SW	0.2mi	3	1.00	1,232	7/31/2020	$ 104,000	$ 84
2	1163 CHATHAM AVE SW	0.8mi	3	1.00	1,768	10/19/2020	$ 348,000	$ 197
3	1188 CHATHAM AVE SW	0.9mi	2	1.00	1,471	7/27/2020	$ 282,000	$ 192
4	1258 LORENZO DR SW	1.5mi	3	1.00	1,266	9/29/2020	$ 193,000	$ 152
5	1316 AVON AVE SW	1.5mi	3	2.00	2,144	12/10/2020	$ 455,000	$ 212
Average:							$ 276,400	$ 167

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.	$ 336
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.	$ 16,464	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).
Total Expenses	$ 0	0.00 %
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.	$ 16,464	100.00 %

Cash Flow (Year 1)

Net Operating Income	$ 16,464	100.00 %
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.	$ 16,464	100.00 %
Income Tax Liability	$ 2,807	17.05 %
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.	$ 13,657	82.95 %

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).	0.00 %
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.	0.00 %

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.	$ 492,052
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.	12.05 %
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	3.38
Annual Depreciation	$ 5,236

Holding period of 30 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.	7.95 %
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.	13.17 %
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.	6.51 %
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.	9.33 %
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.	15.06

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	26	27	28	29	30
Operational Analysis
Gross Scheduled Income	0	16,800	17,640	18,522	19,448	20,421	21,442	22,514	23,639	24,821	26,062	27,365	28,734	30,170	31,679	33,263	34,926	36,672	38,506	40,431	42,453	44,575	46,804	49,144	51,602	54,182	56,891	59,735	62,722	65,858	69,151
Vacancy Loss	0	336	353	370	389	408	429	450	473	496	521	547	575	603	634	665	699	733	770	809	849	891	936	983	1,032	1,084	1,138	1,195	1,254	1,317	1,383
Gross Operating Income	0	16,464	17,287	18,152	19,059	20,012	21,013	22,063	23,167	24,325	25,541	26,818	28,159	29,567	31,045	32,598	34,228	35,939	37,736	39,623	41,604	43,684	45,868	48,162	50,570	53,098	55,753	58,541	61,468	64,541	67,768
Expenses	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	0	0	0	0	0
Net Operating Income	0	16,464	17,287	18,152	19,059	20,012	21,013	22,063	23,167	24,325	25,541	26,818	28,159	29,567	31,045	32,598	34,228	35,939	37,736	39,623	41,604	43,684	45,868	48,162	50,570	53,098	55,753	58,541	61,468	64,541	67,768
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	0	0	0	0	0
Cash Flow Before Taxes	-207,000	16,464	17,287	18,152	19,059	20,012	21,013	22,063	23,167	24,325	25,541	26,818	28,159	29,567	31,045	32,598	34,228	35,939	37,736	39,623	41,604	43,684	45,868	48,162	50,570	53,098	55,753	58,541	61,468	64,541	67,768
Depreciation	0	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236	5,236
Taxes	0	2,807	3,013	3,229	3,456	3,694	3,944	4,207	4,483	4,772	5,076	5,396	5,731	6,083	6,452	6,840	7,248	7,676	8,125	8,597	9,092	9,612	10,158	10,731	11,333	11,966	12,629	13,326	14,058	14,826	15,633
Cash Flow After Taxes	-207,000	13,657	14,274	14,923	15,603	16,318	17,069	17,857	18,684	19,553	20,465	21,423	22,428	23,484	24,593	25,757	26,980	28,263	29,611	31,026	32,512	34,072	35,710	37,430	39,236	41,133	43,124	45,215	47,410	49,715	52,135

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 30 years. Below is the resale price calculated using different methods.

Appreciation (6.00%)	$ 1,453,103
Cap Rate (6.51%) & NOI	$ 1,040,985
Gross Rent Multiplier	$ 1,041,416

Sale Proceeds

Projected Selling Price	$ 1,453,103
Costs of Sale (3.00%)	$ 43,593
Net Sale Proceeds Before Tax	$ 1,409,510

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	$ 1,409,510
Investor Cash Outlay	$ 207,000
Net Assets	$ 1,202,510
Average Yield
Annual Net Assets	$ 40,084
Average Cash Flow (After Taxes)	$ 26,917
Average Annual Gain (After Taxes)	$ 67,001
Average Annual Yield (After Taxes)	37.22 %

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: 2133 Cascade Rd, Atlanta RENTAL

Property Report :

2133 Cascade Rd, Atlanta, GA 30311

Executive Summary