Property Report :

243 Franklin Street

243 Franklin St, Melbourne, 3004

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Real Estate Analysis

Created on: Apr 15, 2025

Author: alessandro macchi

243 Franklin St, Melbourne, 3004

Apartment:

Investment strategy: Rental Property

Purchase Price$ 365,000

Rent$ 2,600/mo

Monthly Cash Flow$ 347

Cash on Cash Return6.97 %

Financial Analysis

Cash on Cash Return	6.97 %
Internal Rate of Return (IRR)	14.04 %
Capitalization Rate	5.99 %
Gross Rent Multiplier (GRM)	11.70
Debt-coverage Ratio (DCR)	1.24
Operating Expense Ratio (OER)	29.26 %

Financial Breakdown

Purchase Price	$ 365,000
Purchase Costs	$ 15,715
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).	$ 380,715
Financing	$ 321,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 59,715
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.	$ 59,715

Operating Analysis

Rent	$ 2,600/mo
Gross Operating Income (GOI)	$ 30,888
Total Expenses	$ 9,039
Net Operating Income (NOI)	$ 21,849
Annual Debt Service	$ 17,687
Cash Flow Before Taxes (CFBT)	$ 4,162
Income Tax Liability	$ -120
Cash Flow After Taxes (CFAT)	$ 4,283

Purchase Price	$ 365,000
Address	243 Franklin St , Melbourne, 3004, AU
Type	Apartment

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.	$ 31,200
	$ 0
Total Gross Income	$ 31,200
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.	$ 312
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.	$ 30,888	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	$ 1,658	5.37 %
Body Corporate	$ 3,000	9.71 %
Insurance	$ 550	1.78 %
Deposit loan	$ 2,256	7.30 %
Council	$ 800	2.59 %
Water rate	$ 600	1.94 %
Wealth Package	$ 175	0.57 %
Total Expenses	$ 9,039	29.26 %
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.	$ 21,849	70.74 %

Cash Flow (Year 1)

Net Operating Income	$ 21,849	70.74 %
Annual Debt Service	$ 17,687	57.26 %
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.	$ 4,162	13.48 %
Income Tax Liability	$ -120	-0.39 %
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.	$ 4,283	13.87 %

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).	29.26 %
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.	86.52 %

Year	0	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20	21	22	23	24	25	26	27	28	29	30
Operational Analysis
Gross Scheduled Income	0	31,200	31,824	32,460	33,110	33,772	34,447	35,136	35,839	36,556	37,287	38,033	38,793	39,569	40,361	41,168	41,991	42,831	43,688	44,561	45,453	46,362	47,289	48,235	49,199	50,183	51,187	52,211	53,255	54,320	55,406
Vacancy Loss	0	312	318	325	331	338	344	351	358	366	373	380	388	396	404	412	420	428	437	446	455	464	473	482	492	502	512	522	533	543	554
Gross Operating Income	0	30,888	31,506	32,136	32,779	33,434	34,103	34,785	35,481	36,190	36,914	37,652	38,405	39,173	39,957	40,756	41,571	42,403	43,251	44,116	44,998	45,898	46,816	47,752	48,707	49,681	50,675	51,689	52,722	53,777	54,852
Expenses	0	9,039	9,220	9,404	9,592	9,784	9,980	10,179	10,383	10,591	10,802	11,019	11,239	11,464	11,693	11,927	12,165	12,409	12,657	12,910	13,168	13,432	13,700	13,974	14,254	14,539	14,829	15,126	15,429	15,737	16,052
Net Operating Income	0	21,849	22,286	22,732	23,186	23,650	24,123	24,606	25,098	25,600	26,112	26,634	27,166	27,710	28,264	28,829	29,406	29,994	30,594	31,206	31,830	32,466	33,116	33,778	34,454	35,143	35,846	36,563	37,294	38,040	38,800
Loan Payment	0	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687	17,687
Payment Interest Part	0	11,713	11,489	11,257	11,017	10,767	10,508	10,239	9,961	9,671	9,371	9,060	8,737	8,402	8,055	7,694	7,320	6,932	6,530	6,112	5,679	5,230	4,764	4,280	3,778	3,258	2,718	2,157	1,576	973	348
Payment Principal Part	0	5,974	6,197	6,429	6,670	6,920	7,179	7,447	7,726	8,015	8,315	8,626	8,949	9,284	9,632	9,992	10,366	10,754	11,157	11,574	12,007	12,457	12,923	13,407	13,908	14,429	14,969	15,529	16,110	16,713	17,339
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-59,715	4,162	4,599	5,045	5,500	5,964	6,437	6,919	7,411	7,913	8,425	8,947	9,480	10,023	10,577	11,143	11,719	12,307	12,907	13,519	14,143	14,780	15,429	16,092	16,767	17,456	18,159	18,876	19,607	20,353	21,114
Depreciation	0	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618	10,618
Taxes	0	-120	45	214	388	566	749	937	1,130	1,328	1,531	1,739	1,953	2,172	2,398	2,629	2,867	3,111	3,361	3,619	3,883	4,155	4,434	4,720	5,014	5,317	5,628	5,947	6,275	6,612	6,959
Cash Flow After Taxes	-59,715	4,283	4,555	4,831	5,112	5,397	5,687	5,982	6,281	6,585	6,894	7,208	7,527	7,851	8,180	8,514	8,852	9,197	9,546	9,900	10,260	10,625	10,996	11,372	11,753	12,139	12,532	12,929	13,332	13,741	14,155

Note: All amounts in the table above are in $

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