2133 Sagamore Rd, Columbus OH 43219

2133 Sagamore Rd, Columbus, OH 43219

Singlefamily: 4 bedrooms , 2 bathrooms

Year built: 1953, Size: 1408 SF

Investment strategy: Rental Property

Purchase Price$ 175,000

Rent$ 1,900/mo

Monthly Cash Flow$ 760

Cash on Cash Return24.18 %

Financial Analysis

Cash on Cash Return	24.18 %
Internal Rate of Return (IRR)	26.86 %
Capitalization Rate	9.26 %
Gross Rent Multiplier (GRM)	7.68
Debt-coverage Ratio (DCR)	2.29
Operating Expense Ratio (OER)	25.20 %

Financial Breakdown

Purchase Price	$ 175,000
Purchase Costs	$ 2,700
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).	$ 177,700
Financing	$ 140,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 37,700
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.	$ 35,000
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.	$ 2,700

Operating Analysis

Rent	$ 1,900/mo
Gross Operating Income (GOI)	$ 21,660
Total Expenses	$ 5,459
Net Operating Income (NOI)	$ 16,201
Annual Debt Service	$ 7,083
Cash Flow Before Taxes (CFBT)	$ 9,118
Income Tax Liability	$ 1,737
Cash Flow After Taxes (CFAT)	$ 7,380

Welcome to 2133 Sagamore! This home has been completely updated. Freshly painted, gorgeous vinyl and tile flooring, all new appliances, 4 spacious bedrooms, a two full bathroom, plenty of room for indoor & outdoor for entertaining and relaxation. 1st Floor Laundry. New Roof. Come Visit today!

Purchase Price	$ 175,000
Address	2133 Sagamore Rd , Columbus, 43219, OH
MLS^® #	221033849
Listing Agent	Don Payne
Listing Broker	Vision Realty, Inc.
Year Built	1953
Type	Singlefamily
Size	1408 SF
Bedrooms	4
Bathrooms	2

Property History

Date	Price	Change	Event
4/28/2021
2/25/1987

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.	$ 22,800
Total Gross Income	$ 22,800
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.	$ 1,140
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.	$ 21,660	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	$ 1,949	9.00 %
Utilities	$ 1,083	5.00 %
Repairs	$ 1,083	5.00 %
Property tax	$ 816	3.77 %
Insurance	$ 528	2.44 %
Total Expenses	$ 5,459	25.20 %
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.	$ 16,201	74.80 %

Cash Flow (Year 1)

Net Operating Income	$ 16,201	74.80 %
Annual Debt Service	$ 7,083	32.70 %
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.	$ 9,118	42.09 %
Income Tax Liability	$ 1,737	8.02 %
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.	$ 7,380	34.07 %

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).	25.20 %
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.	57.91 %

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.	$ 97,007
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.	26.86 %
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	3.57
Annual Depreciation	$ 5,091

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.	24.18 %
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.	38.11 %
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.	9.26 %
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.	13.03 %
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.	7.68

Financing
Down Payment		$ 35,000
Loan		$ 140,000
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		2.29

Loan Financing of: Purchase price ($ 175,000)
Type	Amortized
Loan Amount	$ 140,000
Down payment (20%)	$ 35,000
Amortization	30 years
Interest Rate	3.00 %
Monthly Payment	$ 590.25

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
Operational Analysis
Gross Scheduled Income	0	22,800	23,256	23,721	24,196	24,679	25,173	25,677	26,190	26,714	27,248
Vacancy Loss	0	1,140	1,163	1,186	1,210	1,234	1,259	1,284	1,310	1,336	1,362
Gross Operating Income	0	21,660	22,093	22,535	22,986	23,445	23,914	24,393	24,881	25,378	25,886
Expenses	0	5,459	5,569	5,680	5,794	5,909	6,028	6,148	6,271	6,397	6,524
Net Operating Income	0	16,201	16,525	16,855	17,192	17,536	17,887	18,245	18,609	18,982	19,361
Loan Payment	0	7,083	7,083	7,083	7,083	7,083	7,083	7,083	7,083	7,083	7,083
Payment Interest Part	0	4,160	4,071	3,980	3,885	3,788	3,688	3,584	3,478	3,368	3,255
Payment Principal Part	0	2,923	3,012	3,103	3,198	3,295	3,395	3,499	3,605	3,715	3,828
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-37,700	9,118	9,442	9,772	10,109	10,453	10,804	11,162	11,526	11,899	12,278
Depreciation	0	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091
Taxes	0	1,737	1,841	1,946	2,054	2,164	2,277	2,392	2,510	2,631	2,754
Cash Flow After Taxes	-37,700	7,380	7,601	7,826	8,055	8,289	8,527	8,769	9,016	9,268	9,525

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.

Appreciation (3.00%)	$ 235,185
Cap Rate (9.26%) & NOI	$ 209,084
Gross Rent Multiplier	$ 209,265

Sale Proceeds

Projected Selling Price	$ 235,185
Costs of Sale (6.00%)	$ 14,111
1. Loan Balance Payoff	$ 106,428
Net Sale Proceeds Before Tax	$ 114,646

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	$ 114,646
Investor Cash Outlay	$ 37,700
Net Assets	$ 76,946
Average Yield
Annual Net Assets	$ 7,695
Average Cash Flow (After Taxes)	$ 7,473
Average Annual Gain (After Taxes)	$ 15,168
Average Annual Yield (After Taxes)	8.67 %

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 Sagamore Rd, Columbus RENTAL

Property Report :

2133 Sagamore Rd, Columbus, OH 43219

Executive Summary