3257 N Booth St, Milwaukee WI 53212

3257 N Booth St, Milwaukee, WI 53212

Singlefamily: 3 bedrooms , 2 bathrooms

Year built: 1906, Size: 1654 SF

Investment strategy: Rental Property

Purchase Price$ 160,000

Rent$ 1,382/mo

Monthly Cash Flow$ 132

Cash on Cash Return4.57 %

Financial Analysis

Cash on Cash Return	4.57 %
Internal Rate of Return (IRR)	15.59 %
Capitalization Rate	5.04 %
Gross Rent Multiplier (GRM)	9.65
Debt-coverage Ratio (DCR)	1.24
Operating Expense Ratio (OER)	48.86 %

Financial Breakdown

Purchase Price	$ 160,000
Purchase Costs	$ 2,600
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).	$ 162,600
Financing	$ 128,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 34,600
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.	$ 32,000
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.	$ 2,600

Operating Analysis

Rent	$ 1,382/mo
Gross Operating Income (GOI)	$ 15,755
Total Expenses	$ 7,697
Net Operating Income (NOI)	$ 8,058
Annual Debt Service	$ 6,476
Cash Flow Before Taxes (CFBT)	$ 1,582
Income Tax Liability	$ -100
Cash Flow After Taxes (CFAT)	$ 1,682

Pleasantly refreshed historic Riverwest home. This 3 BR/2 BA home features a flexible floor plan, abundant storage and many updates. Kitchen with newer stainless-steel appliances and decorative tile backsplash. Original hardwood floors in living & dining rooms. Most windows updated. New carpet and LVP flooring throughout. Master bedroom includes bonus/sitting room and 2 walk-in closets. Several rooms showcase original built-ins. Freshly painted interior. Walk-up attic. Fenced backyard perfect for entertaining. Shed could make a great art studio or chicken coop. Easy access to I43 & public transportation. Close to the Beerline bike trail, Pleasant Valley & Kern Parks and all the restaurants, shops, and vibrancy Riverwest has to offer. Make this gem yours today!

Purchase Price	$ 160,000
Address	3257 N Booth St , Milwaukee, 53212, WI
MLS^® #	1759047
Listing Agent	Tom Combs
Listing Broker	RE/MAX Realty 100
Year Built	1906
Type	Singlefamily
Size	1654 SF
Bedrooms	3
Bathrooms	2

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.	$ 16,584
Total Gross Income	$ 16,584
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.	$ 829
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.	$ 15,755	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	$ 1,418	9.00 %
Insurance	$ 788	5.00 %
Repairs	$ 788	5.00 %
Property tax	$ 4,380	27.80 %
Insurance	$ 324	2.06 %
Total Expenses	$ 7,697	48.86 %
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.	$ 8,058	51.14 %

Cash Flow (Year 1)

Net Operating Income	$ 8,058	51.14 %
Annual Debt Service	$ 6,476	41.10 %
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.	$ 1,582	10.04 %
Income Tax Liability	$ -100	-0.64 %
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.	$ 1,682	10.67 %

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).	48.86 %
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.	89.96 %

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.	$ 46,068
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.	15.59 %
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	2.33
Annual Depreciation	$ 4,655

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.	4.57 %
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.	18.44 %
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.	5.04 %
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.	10.37 %
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.	9.65

Financing
Down Payment		$ 32,000
Loan		$ 128,000
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		1.24

Loan Financing of: Purchase price ($ 160,000)
Type	Amortized
Loan Amount	$ 128,000
Down payment (20%)	$ 32,000
Amortization	30 years
Interest Rate	3.00 %
Monthly Payment	$ 539.65

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	16,584	16,916	17,254	17,599	17,951	18,310	18,676	19,050	19,431	19,819
Vacancy Loss	0	829	846	863	880	898	916	934	952	972	991
Gross Operating Income	0	15,755	16,070	16,391	16,719	17,054	17,395	17,742	18,097	18,459	18,828
Expenses	0	7,697	7,851	8,008	8,169	8,332	8,499	8,669	8,842	9,019	9,199
Net Operating Income	0	8,057	8,219	8,383	8,551	8,722	8,896	9,074	9,255	9,441	9,629
Loan Payment	0	6,476	6,476	6,476	6,476	6,476	6,476	6,476	6,476	6,476	6,476
Payment Interest Part	0	3,803	3,722	3,638	3,552	3,463	3,372	3,277	3,180	3,080	2,976
Payment Principal Part	0	2,672	2,754	2,837	2,924	3,013	3,104	3,199	3,296	3,396	3,500
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-34,600	1,582	1,743	1,907	2,075	2,246	2,420	2,598	2,780	2,965	3,153
Depreciation	0	4,655	4,655	4,655	4,655	4,655	4,655	4,655	4,655	4,655	4,655
Taxes	0	-100	-40	22	86	151	217	285	355	426	500
Cash Flow After Taxes	-34,600	1,682	1,782	1,885	1,989	2,095	2,203	2,313	2,424	2,538	2,654

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%)	$ 215,027
Cap Rate (5.04%) & NOI	$ 191,058
Gross Rent Multiplier	$ 191,257

Sale Proceeds

Projected Selling Price	$ 215,027
Costs of Sale (6.00%)	$ 12,902
1. Loan Balance Payoff	$ 97,305
Net Sale Proceeds Before Tax	$ 104,820

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	$ 104,820
Investor Cash Outlay	$ 34,600
Net Assets	$ 70,220
Average Yield
Annual Net Assets	$ 7,022
Average Cash Flow (After Taxes)	$ 1,891
Average Annual Gain (After Taxes)	$ 8,913
Average Annual Yield (After Taxes)	5.57 %

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: 3257 N Booth St, Milwaukee RENTAL

Property Report :

3257 N Booth St, Milwaukee, WI 53212

Executive Summary