2609 Silkwood St, Dallas TX 75215

2609 Silkwood St, Dallas, TX 75215

Singlefamily: 3 bedrooms , 2 bathrooms

Year built: 2012, Size: 1279 SF

Investment strategy: Rental Property

Beds: 3
Baths: 2
Sq/Ft: 1279
Year Built: 2012, original owner
Parcel size: 0.1377
Water / Sewer: City
Taxes: $4375 per Redfin info
HOA: No, doesn't think so.
Roof: Original
Windows: Original
HVAC: Original

Purchase Price$ 150,000

Rent$ 1,750/mo

Monthly Cash Flow$ 875

Cash on Cash Return6.91 %

Financial Analysis

Cash on Cash Return	6.91 %
Internal Rate of Return (IRR)	10.38 %
Capitalization Rate	5.25 %
Gross Rent Multiplier (GRM)	9.52
Debt-coverage Ratio (DCR)	0.00
Operating Expense Ratio (OER)	50.00 %
After Repair Value	$ 200,000
Profit/Equity From Rehab	$ 48,000

Financial Breakdown

Purchase Price	$ 150,000
Purchase Costs	$ 2,000
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).	$ 152,000
Financing	$ 0
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 152,000
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.	$ 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.	$ 152,000

Operating Analysis

Rent	$ 1,750/mo
Gross Operating Income (GOI)	$ 21,000
Total Expenses	$ 10,500
Net Operating Income (NOI)	$ 10,500
Annual Debt Service	$ 0
Cash Flow Before Taxes (CFBT)	$ 10,500
Income Tax Liability	$ 1,534
Cash Flow After Taxes (CFAT)	$ 8,966

2609 Silkwood St, Dallas, TX 75215 is a single family home built in 2012. According to the Dallas public records, the property at 2609 Silkwood St, Dallas, TX 75215 has approximately 1279 square feet, 3 beds and 2 baths with a lot size of 5,998 square feet. Nearby schools include Billy Earl Dade Middle School, Lincoln Humanities/Communications and Joseph J Rhoads Learning Center.

Purchase Price	$ 150,000
Address	2609 Silkwood St , Dallas, 75215, TX
Year Built	2012
Type	Singlefamily
Size	1279 SF
Bedrooms	3
Bathrooms	2

Property History

Date	Price	Change	Event
10/1/2012

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.	$ 21,000
Total Gross Income	$ 21,000
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.	$ 0
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.	$ 21,000	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).
50% rule	$ 10,500	50.00 %
Total Expenses	$ 10,500	50.00 %
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.	$ 10,500	50.00 %

Cash Flow (Year 1)

Net Operating Income	$ 10,500	50.00 %
Annual Debt Service	$ 0	0.00 %
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.	$ 10,500	50.00 %
Income Tax Liability	$ 1,534	7.30 %
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.	$ 8,966	42.70 %

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).	50.00 %
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.	50.00 %

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.	$ 77,590
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.	10.38 %
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	1.51
Annual Depreciation	$ 4,364

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.	6.91 %
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.	9.87 %
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.	5.25 %
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.	14.00 %
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.	9.52

There is no financing selected in this deal.

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	21,000	21,420	21,848	22,285	22,731	23,186	23,649	24,122	24,605	25,097
Vacancy Loss	0	0	0	0	0	0	0	0	0	0	0
Gross Operating Income	0	21,000	21,420	21,848	22,285	22,731	23,186	23,649	24,122	24,605	25,097
Expenses	0	10,500	10,710	10,924	11,143	11,366	11,593	11,825	12,061	12,302	12,548
Net Operating Income	0	10,500	10,710	10,924	11,143	11,366	11,593	11,825	12,061	12,302	12,548
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-152,000	10,500	10,710	10,924	11,143	11,366	11,593	11,825	12,061	12,302	12,548
Depreciation	0	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364
Taxes	0	1,534	1,587	1,640	1,695	1,750	1,807	1,865	1,924	1,985	2,046
Cash Flow After Taxes	-152,000	8,966	9,124	9,284	9,448	9,615	9,786	9,960	10,137	10,318	10,502

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%)	$ 268,783
Cap Rate (5.25%) & NOI	$ 239,019
Gross Rent Multiplier	$ 238,923

Sale Proceeds

Projected Selling Price	$ 268,783
Costs of Sale (6.00%)	$ 16,127
Net Sale Proceeds Before Tax	$ 252,656

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	$ 252,656
Investor Cash Outlay	$ 152,000
Net Assets	$ 100,656
Average Yield
Annual Net Assets	$ 10,066
Average Cash Flow (After Taxes)	$ 8,664
Average Annual Gain (After Taxes)	$ 18,729
Average Annual Yield (After Taxes)	12.49 %

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: 2609 Silkwood St, Dallas RENTAL PUBLISHED

Property Report :

2609 Silkwood St, Dallas, TX 75215

Executive Summary