219 Bodmann Ave, Cincinnati OH 45219

219 Bodmann Ave, Cincinnati, OH 45219

Multifamily:

Year built: 1887,

Investment strategy: Rental Property

Purchase Price$ 1,100,000

Rent$ 10,781/mo

Monthly Cash Flow$ 5,024

Cash on Cash Return27.22 %

Financial Analysis

Cash on Cash Return	27.22 %
Internal Rate of Return (IRR)	29.27 %
Capitalization Rate	9.93 %
Gross Rent Multiplier (GRM)	8.50
Debt-coverage Ratio (DCR)	2.23
Operating Expense Ratio (OER)	12.85 %

Financial Breakdown

Purchase Price	$ 1,100,000
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).	$ 1,101,500
Financing	$ 880,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 221,500
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.	$ 220,000
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.	$ 1,500

Operating Analysis

Rent	$ 10,781/mo
Gross Operating Income (GOI)	$ 125,361
Total Expenses	$ 16,106
Net Operating Income (NOI)	$ 109,255
Annual Debt Service	$ 48,965
Cash Flow Before Taxes (CFBT)	$ 60,291
Income Tax Liability	$ 11,111
Cash Flow After Taxes (CFAT)	$ 49,180

Exciting opportunity to invest in this beautiful and historic 9 unit building close to downtown, UC and hospitals! 5 units FULLY remodeled with new floors, baths, kitchens, electric and central heat and AC! New rubber roof, new windows installed! $100k/yr gross with room to grow.

Purchase Price	$ 1,100,000
Address	219 Bodmann Ave , Cincinnati, 45219, OH
MLS^® #	1704017
Listing Agent	David Skvorak
Listing Broker	Comey & Shepherd
Year Built	1887
Type	Multifamily
Number of Units

Property History

Date	Price	Change	Event
11/24/2009
10/13/1998

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.	$ 129,372
Total Gross Income	$ 129,372
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.	$ 4,011
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.	$ 125,361	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	$ 16,106	12.85 %
Total Expenses	$ 16,106	12.85 %
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.	$ 109,255	87.15 %

Cash Flow (Year 1)

Net Operating Income	$ 109,255	87.15 %
Annual Debt Service	$ 48,965	39.06 %
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.	$ 60,291	48.09 %
Income Tax Liability	$ 11,111	8.86 %
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.	$ 49,180	39.23 %

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).	12.85 %
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.	51.91 %

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.	$ 638,416
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.	29.27 %
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	3.88
Annual Depreciation	$ 32,000

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.	27.22 %
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.	42.12 %
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.	9.93 %
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.	11.76 %
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.	8.50

Financing
Down Payment		$ 220,000
Loan		$ 880,000
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		2.23

Loan Financing of: Purchase price ($ 1,100,000)
Type	Amortized
Loan Amount	$ 880,000
Down payment (20%)	$ 220,000
Amortization	30 years
Interest Rate	3.76 %
Monthly Payment	$ 4,080.41

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	129,372	131,959	134,599	137,291	140,036	142,837	145,694	148,608	151,580	154,612
Vacancy Loss	0	4,011	4,091	4,173	4,256	4,341	4,428	4,517	4,607	4,699	4,793
Gross Operating Income	0	125,361	127,869	130,426	133,035	135,695	138,409	141,177	144,001	146,881	149,819
Expenses	0	16,106	16,428	16,757	17,092	17,434	17,782	18,138	18,501	18,871	19,248
Net Operating Income	0	109,255	111,441	113,669	115,943	118,262	120,627	123,039	125,500	128,010	130,570
Loan Payment	0	48,965	48,965	48,965	48,965	48,965	48,965	48,965	48,965	48,965	48,965
Payment Interest Part	0	32,812	32,194	31,552	30,886	30,194	29,476	28,731	27,957	27,153	26,318
Payment Principal Part	0	16,153	16,771	17,413	18,079	18,771	19,489	20,234	21,008	21,812	22,646
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-221,500	60,291	62,476	64,704	66,978	69,297	71,662	74,074	76,535	79,045	81,605
Depreciation	0	32,000	32,000	32,000	32,000	32,000	32,000	32,000	32,000	32,000	32,000
Taxes	0	11,111	11,812	12,529	13,264	14,017	14,788	15,577	16,386	17,214	18,063
Cash Flow After Taxes	-221,500	49,180	50,664	52,175	53,714	55,280	56,874	58,497	60,149	61,831	63,542

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%)	$ 1,478,308
Cap Rate (9.93%) & NOI	$ 1,314,909
Gross Rent Multiplier	$ 1,314,198

Sale Proceeds

Projected Selling Price	$ 1,478,308
Costs of Sale (6.00%)	$ 88,698
1. Loan Balance Payoff	$ 687,622
Net Sale Proceeds Before Tax	$ 701,987

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	$ 701,987
Investor Cash Outlay	$ 221,500
Net Assets	$ 480,487
Average Yield
Annual Net Assets	$ 48,049
Average Cash Flow (After Taxes)	$ 49,836
Average Annual Gain (After Taxes)	$ 97,885
Average Annual Yield (After Taxes)	8.90 %

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: 219 Bodmann Ave, Cincinnati RENTAL

Property Report :

219 Bodmann Ave, Cincinnati, OH 45219

Executive Summary