2918 NE 9th St, Ocala FL 34470

2918 NE 9th St, Ocala, FL 34470

Singlefamily: 3 bedrooms , 2 bathrooms

Year built: 1962, Size: 1445 SF

Investment strategy: Rental Property

Purchase Price$ 199,500

Rent$ 1,500/mo

Monthly Cash Flow$ 781

Cash on Cash Return4.54 %

Financial Analysis

Cash on Cash Return	4.54 %
Internal Rate of Return (IRR)	6.06 %
Capitalization Rate	4.70 %
Gross Rent Multiplier (GRM)	11.08
Debt-coverage Ratio (DCR)	0.00
Operating Expense Ratio (OER)	42.15 %

Financial Breakdown

Purchase Price	$ 199,500
Purchase Costs	$ 7,000
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).	$ 206,500
Financing	$ 0
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 206,500
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.	$ 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.	$ 206,500

Operating Analysis

Rent	$ 1,500/mo
Gross Operating Income (GOI)	$ 16,200
Total Expenses	$ 6,828
Net Operating Income (NOI)	$ 9,372
Annual Debt Service	$ 0
Cash Flow Before Taxes (CFBT)	$ 9,372
Income Tax Liability	$ 892
Cash Flow After Taxes (CFAT)	$ 8,480

Immaculate 3/2, completely renovated home on almost 1/2 acre, chain link fenced yard! New roof (2021), new exterior and interior paint, all new window blinds, new light fixtures and fans, gorgeous hard wood floors, bathrooms updated with full tile, A/C in 2012, screened back porch overlooks large back yard in a park-like setting! Large detached storage building, paved road frontage, sits adjacent to Jim Kirk Park making the yard feel even larger with view of mature landscaping, expansive walking paths, and playground.....Located close to shopping, hospitals, schools and restaurants, and only minutes from the outdoor fun of the Silver Springs and National Forest areas filled with its lakes, springs, camping and rivers. Priced affordably, centrally located, and all the updates to this home make it a dream come true at $199, 500!

Purchase Price	$ 199,500
Address	2918 NE 9th St , Ocala, 34470, FL
MLS^® #	OM635974
Listing Agent	Sherri Meadows
Listing Broker	KELLER WILLIAMS CORNERSTONE
Year Built	1962
Type	Singlefamily
Size	1445 SF
Bedrooms	3
Bathrooms	2

Property History

Date	Price	Change	Event
11/10/2005

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.	$ 18,000
Total Gross Income	$ 18,000
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.	$ 1,800
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.	$ 16,200	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	$ 1,620	10.00 %
Utilities	$ 600	3.70 %
Repairs	$ 1,345	8.30 %
Association fees	$ 1,752	10.81 %
Property tax	$ 611	3.77 %
Insurance	$ 900	5.56 %
Total Expenses	$ 6,828	42.15 %
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.	$ 9,372	57.85 %

Cash Flow (Year 1)

Net Operating Income	$ 9,372	57.85 %
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.	$ 9,372	57.85 %
Income Tax Liability	$ 892	5.51 %
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.	$ 8,480	52.35 %

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).	42.15 %
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.	42.15 %

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.	$ 18,388
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.	6.06 %
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	1.09
Annual Depreciation	$ 5,804

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.	4.54 %
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.	7.44 %
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.	4.70 %
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.	9.02 %
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.	11.08

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	18,000	18,360	18,727	19,102	19,484	19,873	20,271	20,676	21,090	21,512
Vacancy Loss	0	1,800	1,836	1,873	1,910	1,948	1,987	2,027	2,068	2,109	2,151
Gross Operating Income	0	16,200	16,524	16,854	17,192	17,535	17,886	18,244	18,609	18,981	19,361
Expenses	0	6,828	6,964	7,103	7,246	7,390	7,538	7,689	7,843	8,000	8,160
Net Operating Income	0	9,372	9,560	9,751	9,946	10,145	10,348	10,555	10,766	10,981	11,201
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-206,500	9,372	9,560	9,751	9,946	10,145	10,348	10,555	10,766	10,981	11,201
Depreciation	0	5,804	5,804	5,804	5,804	5,804	5,804	5,804	5,804	5,804	5,804
Taxes	0	892	939	987	1,036	1,085	1,136	1,188	1,240	1,294	1,349
Cash Flow After Taxes	-206,500	8,480	8,621	8,764	8,911	9,060	9,212	9,367	9,525	9,687	9,852

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%)	$ 268,111
Cap Rate (4.70%) & NOI	$ 238,317
Gross Rent Multiplier	$ 238,349

Sale Proceeds

Projected Selling Price	$ 268,111
Costs of Sale (6.00%)	$ 16,087
Net Sale Proceeds Before Tax	$ 252,024

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	$ 252,024
Investor Cash Outlay	$ 206,500
Net Assets	$ 45,524
Average Yield
Annual Net Assets	$ 4,552
Average Cash Flow (After Taxes)	$ 8,163
Average Annual Gain (After Taxes)	$ 12,715
Average Annual Yield (After Taxes)	6.37 %

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: 2918 NE 9th St, Ocala RENTAL

Property Report :

2918 NE 9th St, Ocala, FL 34470

Executive Summary