2212 E 93rd St, Cleveland OH 44106

2212 E 93rd St, Cleveland, OH 44106

Investment strategy: Rental Property

Purchase Price$ 310,000

Rent$ 4,125/mo

Monthly Cash Flow$ 1,361

Cash on Cash Return21.08 %

Financial Analysis

Cash on Cash Return	21.08 %
Internal Rate of Return (IRR)	24.23 %
Capitalization Rate	9.96 %
Gross Rent Multiplier (GRM)	6.26
Debt-coverage Ratio (DCR)	2.12
Operating Expense Ratio (OER)	34.32 %

Financial Breakdown

Purchase Price	$ 310,000
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).	$ 310,000
Financing	$ 232,500
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 77,500
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.	$ 77,500
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.	$ 0

Operating Analysis

Rent	$ 4,125/mo
Gross Operating Income (GOI)	$ 47,025
Total Expenses	$ 16,137
Net Operating Income (NOI)	$ 30,888
Annual Debt Service	$ 14,554
Cash Flow Before Taxes (CFBT)	$ 16,334
Income Tax Liability	$ 2,726
Cash Flow After Taxes (CFAT)	$ 13,608

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.	$ 49,500
Total Gross Income	$ 49,500
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.	$ 2,475
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.	$ 47,025	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	$ 3,762	8.00 %
Utilities	$ 7,000	14.89 %
Insurance	$ 1,500	3.19 %
Repairs	$ 2,351	5.00 %
Property tax	$ 1,524	3.24 %
Total Expenses	$ 16,137	34.32 %
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.	$ 30,888	65.68 %

Cash Flow (Year 1)

Net Operating Income	$ 30,888	65.68 %
Annual Debt Service	$ 14,554	30.95 %
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.	$ 16,334	34.73 %
Income Tax Liability	$ 2,726	5.80 %
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.	$ 13,608	28.94 %

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).	34.32 %
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.	65.27 %

Financing
Down Payment		$ 77,500
Loan		$ 232,500
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.		75.00 %
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).		75.00 %
Debt Coverage Ratio		2.12

Loan Financing of: Purchase price ($ 310,000)
Type	Amortized
Loan Amount	$ 232,500
Down payment (25%)	$ 77,500
Amortization	30 years
Interest Rate	4.75 %
Monthly Payment	$ 1,212.83

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.

Property Report: 2212 E 93rd St, Cleveland RENTAL

Property Report :

2212 E 93rd St, Cleveland, OH 44106

Executive Summary