2496 W Robin Rd, West Valley City UT 84119

2496 W Robin Rd, West Valley City, UT 84119

Multifamily: 4 bedrooms , 4 bathrooms

Year built: 1982, Size: 1972 SF

Investment strategy: Rental Property

Purchase Price$ 400,000

Rent$ 4,000/mo

Monthly Cash Flow$ 696

Cash on Cash Return9.03 %

Financial Analysis

Cash on Cash Return	9.03 %
Internal Rate of Return (IRR)	17.24 %
Capitalization Rate	8.47 %
Gross Rent Multiplier (GRM)	8.33
Debt-coverage Ratio (DCR)	1.33
Operating Expense Ratio (OER)	25.67 %

Financial Breakdown

Purchase Price	$ 400,000
Purchase Costs	$ 10,000
Repair/Construction Costs	$ 2,500
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 412,500
Financing	$ 320,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 92,500
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.	$ 80,000
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.	$ 12,500

Operating Analysis

Rent	$ 4,000/mo
Gross Operating Income (GOI)	$ 45,600
Total Expenses	$ 11,704
Net Operating Income (NOI)	$ 33,896
Annual Debt Service	$ 25,548
Cash Flow Before Taxes (CFBT)	$ 8,348
Income Tax Liability	$ -9
Cash Flow After Taxes (CFAT)	$ 8,358

Renovated West Valley Duplex now available. Both units completely updated. Fresh Paint, Carpet, Laminate Flooring, Kitchen Cabinets, Granite Countertops, & Stainless Steel Appliances. This place is ready to go! Perfect opportunity for someone looking to save on a mortgage. The Buyer can occupy one side and maintain the other as a rental. 1 Year lease just initiated for Unit 2496 (valid through October 2023). Located in a quiet dead end cul-de-sac. Minutes to freeway access (I215), Valley Fair Mall, Eateries, & Shopping. Great location. Schedule your private showing today! Square footage figures are provided as a courtesy estimate only and were obtained from county records. The property does qualify for FHA financing but it has not met the 90 seasoning requirement. The 90 Days seasoning requirement will be met on 11/14/22. Buyer is advised to obtain an independent measurement. Buyer & Buyer's Agent to verify all listing information. Seller is part owner of the listing brokerage, but is not a licensed agent.

Purchase Price	$ 400,000
Address	2496 W Robin Rd , West Valley City, 84119, UT
MLS^® #	1847543
Listing Agent	Joshua Black
Listing Broker	Aspen Ridge Real Estate LLC
Year Built	1982
Type	Multifamily
Number of Units
Size	1972 SF
Bedrooms	4
Bathrooms	4

Unit	Rent
A	$ 2,000/mo
	$ 2,000/mo

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.	$ 48,000
Total Gross Income	$ 48,000
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.	$ 2,400
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.	$ 45,600	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	$ 3,648	8.00 %
Repairs	$ 4,560	10.00 %
Property tax	$ 2,500	5.48 %
Insurance	$ 996	2.18 %
Total Expenses	$ 11,704	25.67 %
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.	$ 33,896	74.33 %

Cash Flow (Year 1)

Net Operating Income	$ 33,896	74.33 %
Annual Debt Service	$ 25,548	56.03 %
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.	$ 8,348	18.31 %
Income Tax Liability	$ -9	-0.02 %
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.	$ 8,358	18.33 %

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).	25.67 %
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.	81.69 %

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.	$ 128,366
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.	17.24 %
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	2.39
Annual Depreciation	$ 11,636

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.	9.03 %
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.	22.00 %
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.	8.47 %
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.	12.00 %
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.	8.33

Financing
Down Payment		$ 80,000
Loan		$ 320,000
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).		79.50 %
Debt Coverage Ratio		1.33

Loan Financing of: Purchase price ($ 400,000)
Type	Amortized
Loan Amount	$ 320,000
Down payment (20%)	$ 80,000
Amortization	30 years
Interest Rate	7.00 %
Monthly Payment	$ 2,128.97

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	48,000	48,960	49,939	50,938	51,957	52,996	54,056	55,137	56,240	57,364
Vacancy Loss	0	2,400	2,448	2,497	2,547	2,598	2,650	2,703	2,757	2,812	2,868
Gross Operating Income	0	45,600	46,512	47,442	48,391	49,359	50,346	51,353	52,380	53,428	54,496
Expenses	0	11,704	11,938	12,177	12,420	12,669	12,922	13,181	13,444	13,713	13,987
Net Operating Income	0	33,896	34,574	35,265	35,971	36,690	37,424	38,172	38,936	39,715	40,509
Loan Payment	0	25,548	25,548	25,548	25,548	25,548	25,548	25,548	25,548	25,548	25,548
Payment Interest Part	0	22,297	22,062	21,810	21,540	21,250	20,939	20,606	20,249	19,866	19,455
Payment Principal Part	0	3,251	3,486	3,738	4,008	4,297	4,608	4,941	5,298	5,681	6,092
Cash Flow
Repairs/Construction	2,500	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-92,500	8,348	9,026	9,718	10,423	11,142	11,876	12,625	13,388	14,167	14,961
Depreciation	0	11,636	11,636	11,636	11,636	11,636	11,636	11,636	11,636	11,636	11,636
Taxes	0	-9	219	455	699	951	1,212	1,483	1,763	2,053	2,354
Cash Flow After Taxes	-92,500	8,358	8,807	9,263	9,724	10,192	10,664	11,142	11,626	12,114	12,607

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%)	$ 537,567
Cap Rate (8.47%) & NOI	$ 478,263
Gross Rent Multiplier	$ 477,846

Sale Proceeds

Projected Selling Price	$ 537,567
Costs of Sale (6.00%)	$ 32,254
1. Loan Balance Payoff	$ 274,600
Net Sale Proceeds Before Tax	$ 230,713

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	$ 230,713
Investor Cash Outlay	$ 92,500
Net Assets	$ 138,213
Average Yield
Annual Net Assets	$ 13,821
Average Cash Flow (After Taxes)	$ 9,189
Average Annual Gain (After Taxes)	$ 23,010
Average Annual Yield (After Taxes)	5.75 %

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: 2496 W Robin Rd, West Valley City RENTAL

Property Report :

2496 W Robin Rd, West Valley City, UT 84119

Executive Summary