301 Lemon St, Elizabethtown PA 17022

301 Lemon St, Elizabethtown, PA 17022

Singlefamily: 4 bedrooms , 1.5 bathrooms

Year built: 1953, Size: 2336 SF

Investment strategy: Rental Property

Purchase Price$ 219,600

Rent$ 1,750/mo

Monthly Cash Flow$ 843

Cash on Cash Return3.16 %

Financial Analysis

Cash on Cash Return	3.16 %
Internal Rate of Return (IRR)	N/A
Capitalization Rate	4.61 %
Gross Rent Multiplier (GRM)	10.46
Debt-coverage Ratio (DCR)	0.00
Operating Expense Ratio (OER)	46.49 %

Financial Breakdown

Purchase Price	$ 219,600
Purchase Costs	$ 0
Repair/Construction Costs	$ 100,000
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 319,600
Financing	$ 0
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 319,600
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.	$ 319,600

Operating Analysis

Rent	$ 1,750/mo
Gross Operating Income (GOI)	$ 18,900
Total Expenses	$ 8,786
Net Operating Income (NOI)	$ 10,114
Annual Debt Service	$ 0
Cash Flow Before Taxes (CFBT)	$ 10,114
Income Tax Liability	$ 932
Cash Flow After Taxes (CFAT)	$ 9,183

301 Lemon St, Elizabethtown, PA 17022 is a single family home built in 1953. This property was last sold for $219,600 in 2021 and currently has an estimated value of $276,600. According to the Elizabethtown public records, the property at 301 Lemon St, Elizabethtown, PA 17022 has approximately 2336 square feet, 4 beds, 1 full and 1 half baths with a lot size of 0.31 acres. Nearby schools include Elizabethtown Area Senior High School, Elizabethtown Area Middle School and East High Street El School.

Purchase Price	$ 219,600
Address	301 Lemon St , Elizabethtown, 17022, PA
Listing Agent	Randal V Kline
Listing Broker	KINGSWAY REALTY
Year Built	1953
Type	Singlefamily
Size	2336 SF
Bedrooms	4
Bathrooms	1.5

Property History

Date	Price	Change	Event
9/16/2021
9/1/2021
12/4/1984

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.	$ 2,100
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.	$ 18,900	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	$ 1,890	10.00 %
Insurance	$ 1,000	5.29 %
Repairs	$ 1,890	10.00 %
Property tax	$ 3,000	15.87 %
Property tax	$ 1,006	5.32 %
Total Expenses	$ 8,786	46.49 %
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.	$ 10,114	53.51 %

Cash Flow (Year 1)

Net Operating Income	$ 10,114	53.51 %
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.	$ 10,114	53.51 %
Income Tax Liability	$ 932	4.93 %
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.	$ 9,183	48.58 %

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).	46.49 %
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.	46.49 %

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.	$ -91,071
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.	N/A
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	0.72
Annual Depreciation	$ 6,388

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.	3.16 %
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.	5.23 %
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.	4.61 %
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.	9.56 %
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.	10.46

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
Operational Analysis
Gross Scheduled Income	0	21,000	21,420	21,848	22,285	22,731
Vacancy Loss	0	2,100	2,142	2,185	2,229	2,273
Gross Operating Income	0	18,900	19,278	19,664	20,057	20,458
Expenses	0	8,786	8,962	9,141	9,324	9,510
Net Operating Income	0	10,114	10,316	10,523	10,733	10,948
Cash Flow
Repairs/Construction	100,000	0	0	0	0	0
Cash Flow Before Taxes	-319,600	10,114	10,316	10,523	10,733	10,948
Depreciation	0	6,388	6,388	6,388	6,388	6,388
Taxes	0	932	982	1,034	1,086	1,140
Cash Flow After Taxes	-319,600	9,183	9,334	9,489	9,647	9,808

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 5 years. Below is the resale price calculated using different methods.

Appreciation (3.00%)	$ 254,577
Cap Rate (4.61%) & NOI	$ 237,478
Gross Rent Multiplier	$ 237,767

Sale Proceeds

Projected Selling Price	$ 254,577
Costs of Sale (6.00%)	$ 15,275
Net Sale Proceeds Before Tax	$ 239,302

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	$ 239,302
Investor Cash Outlay	$ 319,600
Net Assets	$ -80,298
Average Yield
Annual Net Assets	$ -16,060
Average Cash Flow (After Taxes)	$ 7,530
Average Annual Gain (After Taxes)	$ -8,529
Average Annual Yield (After Taxes)	-3.88 %

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: 301 Lemon St, Elizabethtown RENTAL

Property Report :

301 Lemon St, Elizabethtown, PA 17022

Executive Summary