2177 Melton Ave, Macon GA 31217

2177 Melton Ave, Macon, GA 31217

Singlefamily: 3 bedrooms , 1 bathroom

Year built: 1955, Size: 1175 SF

Investment strategy: Rental Property

Purchase Price$ 96,000

Rent$ 995/mo

Monthly Cash Flow$ 817

Cash on Cash Return10.21 %

Financial Analysis

Cash on Cash Return	10.21 %
Internal Rate of Return (IRR)	11.03 %
Capitalization Rate	10.21 %
Gross Rent Multiplier (GRM)	8.04
Debt-coverage Ratio (DCR)	0.00
Operating Expense Ratio (OER)	17.88 %

Financial Breakdown

Purchase Price	$ 96,000
Purchase Costs	$ 0
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).	$ 96,000
Financing	$ 0
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 96,000
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.	$ 96,000

Operating Analysis

Rent	$ 995/mo
Gross Operating Income (GOI)	$ 11,940
Total Expenses	$ 2,135
Net Operating Income (NOI)	$ 9,805
Annual Debt Service	$ 0
Cash Flow Before Taxes (CFBT)	$ 9,805
Income Tax Liability	$ 1,753
Cash Flow After Taxes (CFAT)	$ 8,052

This house is a strong rental investment opportunity and flip potential, 3 bedsroom and 1 full bath, great back yard to parking, located near to downtown, don't miss this opportunity.

Purchase Price	$ 96,000
Address	2177 Melton Ave , Macon, 31217, GA
MLS^® #	7009321
Listing Agent	Gloria Marin
Listing Broker	Virtual Properties Realty
Year Built	1955
Type	Singlefamily
Size	1175 SF
Bedrooms	3
Bathrooms	1

Property History

Date	Price	Change	Event
3/28/2022

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.	$ 11,940
Total Gross Income	$ 11,940
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.	$ 0
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.	$ 11,940	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	$ 1,194	10.00 %
Insurance	$ 500	4.19 %
Property tax	$ 441	3.69 %
Total Expenses	$ 2,135	17.88 %
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.	$ 9,805	82.12 %

Cash Flow (Year 1)

Net Operating Income	$ 9,805	82.12 %
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.	$ 9,805	82.12 %
Income Tax Liability	$ 1,753	14.68 %
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.	$ 8,052	67.44 %

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).	17.88 %
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.	17.88 %

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.	$ 50,280
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.	11.03 %
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	1.52
Annual Depreciation	$ 2,793

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.	10.21 %
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.	13.21 %
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.	10.21 %
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.	12.44 %
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.	8.04

Year	0	1	2	3	4	5	6	7	8	9	10
Operational Analysis
Gross Scheduled Income	0	11,940	12,179	12,422	12,671	12,924	13,183	13,446	13,715	13,990	14,269
Vacancy Loss	0	0	0	0	0	0	0	0	0	0	0
Gross Operating Income	0	11,940	12,179	12,422	12,671	12,924	13,183	13,446	13,715	13,990	14,269
Expenses	0	2,135	2,178	2,221	2,266	2,311	2,357	2,404	2,452	2,501	2,552
Net Operating Income	0	9,805	10,001	10,201	10,405	10,613	10,826	11,042	11,263	11,488	11,718
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-96,000	9,805	10,001	10,201	10,405	10,613	10,826	11,042	11,263	11,488	11,718
Depreciation	0	2,793	2,793	2,793	2,793	2,793	2,793	2,793	2,793	2,793	2,793
Taxes	0	1,753	1,802	1,852	1,903	1,955	2,008	2,062	2,117	2,174	2,231
Cash Flow After Taxes	-96,000	8,052	8,199	8,349	8,502	8,658	8,817	8,980	9,145	9,314	9,487

Note: All amounts in the table above are in $

Property Report: 2177 Melton Ave, Macon RENTAL

Property Report :

2177 Melton Ave, Macon, GA 31217

Executive Summary