2408 Westwood Northern Blvd, Cincinnati OH 45211

2408 Westwood Northern Blvd, Cincinnati, OH 45211

Singlefamily: 4 bedrooms , 1 bathroom

Year built: 1942, Size: 1066 SF

Investment strategy: Rental Property

Purchase Price$ 135,000

Rent$ 1,700/mo

Monthly Cash Flow$ 721

Cash on Cash Return32.06 %

Financial Analysis

Cash on Cash Return	32.06 %
Internal Rate of Return (IRR)	34.79 %
Capitalization Rate	12.96 %
Gross Rent Multiplier (GRM)	6.62
Debt-coverage Ratio (DCR)	1.98
Operating Expense Ratio (OER)	13.37 %

Financial Breakdown

Purchase Price	$ 135,000
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).	$ 135,000
Financing	$ 108,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 27,000
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.	$ 27,000
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.	$ 0

Operating Analysis

Rent	$ 1,700/mo
Gross Operating Income (GOI)	$ 20,196
Total Expenses	$ 2,700
Net Operating Income (NOI)	$ 17,496
Annual Debt Service	$ 8,841
Cash Flow Before Taxes (CFBT)	$ 8,655
Income Tax Liability	$ 1,443
Cash Flow After Taxes (CFAT)	$ 7,212

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.	$ 20,400
Total Gross Income	$ 20,400
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.	$ 204
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.	$ 20,196	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).
Insurance	$ 2,000	9.90 %
Property tax	$ 700	3.47 %
Total Expenses	$ 2,700	13.37 %
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.	$ 17,496	86.63 %

Cash Flow (Year 1)

Net Operating Income	$ 17,496	86.63 %
Annual Debt Service	$ 8,841	43.78 %
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.	$ 8,655	42.86 %
Income Tax Liability	$ 1,443	7.15 %
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.	$ 7,212	35.71 %

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).	13.37 %
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.	57.14 %

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.	$ 41,656
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.	34.79 %
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	2.54
Annual Depreciation	$ 3,927

Holding period of 5 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.	32.06 %
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.	47.06 %
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.	12.96 %
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.	15.11 %
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.	6.62

Financing
Down Payment		$ 27,000
Loan		$ 108,000
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		1.98

Loan Financing of: Purchase price ($ 135,000)
Type	Amortized
Loan Amount	$ 108,000
Down payment (20%)	$ 27,000
Amortization	30 years
Interest Rate	7.25 %
Monthly Payment	$ 736.75

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
Operational Analysis
Gross Scheduled Income	0	20,400	20,808	21,224	21,649	22,082
Vacancy Loss	0	204	208	212	216	221
Gross Operating Income	0	20,196	20,600	21,012	21,432	21,861
Expenses	0	2,700	2,754	2,809	2,865	2,923
Net Operating Income	0	17,496	17,846	18,203	18,567	18,938
Loan Payment	0	8,841	8,841	8,841	8,841	8,841
Payment Interest Part	0	7,796	7,717	7,633	7,543	7,445
Payment Principal Part	0	1,045	1,124	1,208	1,298	1,396
Cash Flow
Repairs/Construction	0	0	0	0	0	0
Cash Flow Before Taxes	-27,000	8,655	9,005	9,362	9,726	10,097
Depreciation	0	3,927	3,927	3,927	3,927	3,927
Taxes	0	1,443	1,550	1,661	1,774	1,891
Cash Flow After Taxes	-27,000	7,212	7,455	7,701	7,952	8,206

Note: All amounts in the table above are in $

Property Report: 2408 Westwood Northern Blvd, Cincinnati RENTAL

Property Report :

2408 Westwood Northern Blvd, Cincinnati, OH 45211

Executive Summary