321 Titusville Road, Lagrangeville NY 12603

321 Titusville Road, Lagrangeville, NY 12603

Singlefamily: 1 bedroom , 1 bathroom

Year built: 1968, Size: 882 SF

Investment strategy: Rental Property

Purchase Price$ 150,000

Rent$ 1,600/mo

Monthly Cash Flow$ 241

Cash on Cash Return9.03 %

Financial Analysis

Cash on Cash Return	9.03 %
Internal Rate of Return (IRR)	15.47 %
Capitalization Rate	6.40 %
Gross Rent Multiplier (GRM)	7.81
Debt-coverage Ratio (DCR)	1.43
Operating Expense Ratio (OER)	50.00 %

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	$ 120,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 32,000
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.	$ 30,000
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.	$ 2,000

Operating Analysis

Rent	$ 1,600/mo
Gross Operating Income (GOI)	$ 19,200
Total Expenses	$ 9,600
Net Operating Income (NOI)	$ 9,600
Annual Debt Service	$ 6,710
Cash Flow Before Taxes (CFBT)	$ 2,890
Income Tax Liability	$ 178
Cash Flow After Taxes (CFAT)	$ 2,712

Why rent when you can buy! Beautifully renovated One Bedroom Condo in a quiet and private community with private balcony facing wooded grounds. Brand new carpet maintains beautiful hardwood floors throughout, lots of closets (walk-in in bedroom) for storage and updated appliances. Close to major highways but quiet enough to feel secluded. With your own assigned parking spot right out front, let the community keep up with the maintenance of your yard for you. HOA includes basic cable, internet, heat, hot water, garbage, snow removal, sewer and basic grounds maintenance.

Purchase Price	$ 150,000
Address	321 Titusville Road , Lagrangeville, 12603, NY
MLS^® #	H6158319
Year Built	1968
Type	Singlefamily
Size	882 SF
Bedrooms	1
Bathrooms	1

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.	$ 19,200
Total Gross Income	$ 19,200
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.	$ 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.	$ 19,200	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).
50% rule	$ 9,600	50.00 %
Total Expenses	$ 9,600	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.	$ 9,600	50.00 %

Cash Flow (Year 1)

Net Operating Income	$ 9,600	50.00 %
Annual Debt Service	$ 6,710	34.95 %
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.	$ 2,890	15.05 %
Income Tax Liability	$ 178	0.93 %
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.	$ 2,712	14.12 %

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.	84.95 %

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.	$ 90,026
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.	15.47 %
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	3.81
Annual Depreciation	$ 4,364

Holding period of 20 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.	23.09 %
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.	6.40 %
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.	12.80 %
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.	7.81

Financing
Down Payment		$ 30,000
Loan		$ 120,000
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).		80.00 %
Debt Coverage Ratio		1.43

Loan Financing of: Purchase price ($ 150,000)
Type	Amortized
Loan Amount	$ 120,000
Down payment (20%)	$ 30,000
Amortization	30 years
Interest Rate	3.80 %
Monthly Payment	$ 559.15

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	11	12	13	14	15	16	17	18	19	20
Operational Analysis
Gross Scheduled Income	0	19,200	19,584	19,976	20,375	20,783	21,198	21,622	22,055	22,496	22,946	23,405	23,873	24,350	24,837	25,334	25,841	26,358	26,885	27,422	27,971
Vacancy Loss	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Gross Operating Income	0	19,200	19,584	19,976	20,375	20,783	21,198	21,622	22,055	22,496	22,946	23,405	23,873	24,350	24,837	25,334	25,841	26,358	26,885	27,422	27,971
Expenses	0	9,600	9,792	9,988	10,188	10,391	10,599	10,811	11,027	11,248	11,473	11,702	11,936	12,175	12,419	12,667	12,920	13,179	13,442	13,711	13,985
Net Operating Income	0	9,600	9,792	9,988	10,188	10,391	10,599	10,811	11,027	11,248	11,473	11,702	11,936	12,175	12,419	12,667	12,920	13,179	13,442	13,711	13,985
Loan Payment	0	6,710	6,710	6,710	6,710	6,710	6,710	6,710	6,710	6,710	6,710	6,710	6,710	6,710	6,710	6,710	6,710	6,710	6,710	6,710	6,710
Payment Interest Part	0	4,522	4,438	4,350	4,258	4,164	4,065	3,963	3,857	3,746	3,632	3,513	3,389	3,261	3,127	2,989	2,845	2,696	2,540	2,379	2,212
Payment Principal Part	0	2,188	2,272	2,360	2,451	2,546	2,645	2,747	2,853	2,963	3,078	3,197	3,321	3,449	3,582	3,721	3,865	4,014	4,170	4,331	4,498
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
Cash Flow Before Taxes	-32,000	2,890	3,082	3,278	3,478	3,682	3,889	4,101	4,318	4,538	4,763	4,993	5,227	5,465	5,709	5,957	6,211	6,469	6,733	7,001	7,276
Depreciation	0	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364	4,364
Taxes	0	178	248	319	391	466	542	621	702	784	869	956	1,046	1,138	1,232	1,329	1,428	1,530	1,635	1,742	1,852
Cash Flow After Taxes	-32,000	2,712	2,835	2,960	3,087	3,216	3,347	3,480	3,616	3,754	3,894	4,036	4,181	4,328	4,477	4,629	4,783	4,939	5,098	5,259	5,423

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 20 years. Below is the resale price calculated using different methods.

Appreciation (3.00%)	$ 270,917
Cap Rate (6.40%) & NOI	$ 218,522
Gross Rent Multiplier	$ 218,452

Sale Proceeds

Projected Selling Price	$ 270,917
Costs of Sale (6.00%)	$ 16,255
1. Loan Balance Payoff	$ 55,749
Net Sale Proceeds Before Tax	$ 198,913

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	$ 198,913
Investor Cash Outlay	$ 32,000
Net Assets	$ 166,913
Average Yield
Annual Net Assets	$ 8,346
Average Cash Flow (After Taxes)	$ 3,731
Average Annual Gain (After Taxes)	$ 12,077
Average Annual Yield (After Taxes)	8.05 %

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: 321 Titusville Road, Lagrangeville RENTAL

Property Report :

321 Titusville Road, Lagrangeville, NY 12603

Executive Summary