3300 Flowertree Rd, Belle Isle FL 32812

3300 Flowertree Rd, Belle Isle, FL 32812

Singlefamily: 6 rooms: 4 bedrooms , 2 bathrooms

Year built: 1958, Size: 1557 SF

Investment strategy: Rental Property

4 bd1,557 sqft

Purchase Price$ 200,000

Rent$ 3,200/mo

Monthly Cash Flow$ 686

Cash on Cash Return21.66 %

Financial Analysis

Cash on Cash Return	21.66 %
Internal Rate of Return (IRR)	25.39 %
Capitalization Rate	13.04 %
Gross Rent Multiplier (GRM)	5.21
Debt-coverage Ratio (DCR)	1.55
Operating Expense Ratio (OER)	29.99 %
After Repair Value	$ 200,000

Financial Breakdown

Purchase Price	$ 200,000
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).	$ 202,600
Financing	$ 160,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 42,600
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.	$ 40,000
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	$ 3,200/mo
Gross Operating Income (GOI)	$ 37,248
Total Expenses	$ 11,172
Net Operating Income (NOI)	$ 26,076
Annual Debt Service	$ 16,849
Cash Flow Before Taxes (CFBT)	$ 8,227
Income Tax Liability	$ 825
Cash Flow After Taxes (CFAT)	$ 7,402

Gorgeous Remodeled Home!! 3 Bedrooms, 2 Bathrooms in an Established Belle Isle Neighborhood!!! Recent Upgrades include Brand New Roof 2019, Water Heater, and Freshly Painted Interior. Brand New stainless steel appliances. There is also a large Bonus/Flex space you could use as an extra bedroom/office/craft room. The 2 Bathrooms have both been completely updated beautifully. The laundry room is conveniently located outside the house. There is Ample Storage available inside and a shed in the Huge backyard. Bring your Boat, there is extra parking on the side of the house. Convenient Location Just Minutes from the Orlando International Airport, Sunrail, Shopping, Dining, and Entertainment.

Purchase Price	$ 200,000
Address	3300 Flowertree Rd , Belle Isle, 32812, FL
Year Built	1958
Type	Singlefamily
Size	1557 SF
Bedrooms	4
Bathrooms	2
Rooms Total	6

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.	$ 38,400
Total Gross Income	$ 38,400
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.	$ 1,152
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.	$ 37,248	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).
Electricity	$ 1,800	4.83 %
Insurance	$ 1,068	2.87 %
Property tax	$ 2,784	7.47 %
Water	$ 2,400	6.44 %
Cleaning	$ 960	2.58 %
Lawn	$ 960	2.58 %
WIFI	$ 1,200	3.22 %
Total Expenses	$ 11,172	29.99 %
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.	$ 26,076	70.01 %

Cash Flow (Year 1)

Net Operating Income	$ 26,076	70.01 %
Annual Debt Service	$ 16,849	45.24 %
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.	$ 8,227	22.09 %
Income Tax Liability	$ 825	2.21 %
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.	$ 7,402	19.87 %

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).	29.99 %
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.	75.23 %

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.	$ 96,797
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.	25.39 %
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	3.27
Annual Depreciation	$ 5,818

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.	21.66 %
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.	35.74 %
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.	13.04 %
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.	19.20 %
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.	5.21

Financing		% of ARV
Down Payment	$ 40,000	20.00 %
Loan1	$ 160,000	80.00 %
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		1.55

Loan1 Financing of: Purchase price ($ 200,000)
Type	Amortized
Loan Amount	$ 160,000
Down payment (20%)	$ 40,000
Amortization	30 years
Interest Rate	10.00 %
Monthly Payment	$ 1,404.11

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	38,400	39,168	39,951	40,750	41,565	42,397	43,245	44,110	44,992	45,892
Vacancy Loss	0	1,152	1,175	1,199	1,223	1,247	1,272	1,297	1,323	1,350	1,377
Gross Operating Income	0	37,248	37,993	38,753	39,528	40,318	41,125	41,947	42,786	43,642	44,515
Expenses	0	11,172	11,395	11,623	11,856	12,093	12,335	12,582	12,833	13,090	13,352
Net Operating Income	0	26,076	26,598	27,129	27,672	28,226	28,790	29,366	29,953	30,552	31,163
Loan Payment	0	16,849	16,849	16,849	16,849	16,849	16,849	16,849	16,849	16,849	16,849
Payment Interest Part	0	15,960	15,867	15,764	15,650	15,525	15,386	15,233	15,064	14,877	14,670
Payment Principal Part	0	889	983	1,085	1,199	1,325	1,463	1,617	1,786	1,973	2,179
Cash Flow
Repairs/Construction	0	1,000	1,000	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-42,600	8,227	8,748	10,280	10,823	11,376	11,941	12,516	13,104	13,703	14,314
Depreciation	0	5,818	5,818	5,818	5,818	5,818	5,818	5,818	5,818	5,818	5,818
Taxes	0	825	978	1,387	1,551	1,721	1,897	2,079	2,268	2,464	2,669
Cash Flow After Taxes	-42,600	7,402	7,770	8,893	9,272	9,655	10,044	10,438	10,836	11,238	11,645

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 (13.04%) & NOI	$ 238,982
Gross Rent Multiplier	$ 239,095

Sale Proceeds

Projected Selling Price	$ 268,783
Costs of Sale (6.00%)	$ 16,127
1. Loan Balance Payoff	$ 145,501
Net Sale Proceeds Before Tax	$ 107,155

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	$ 107,155
Investor Cash Outlay	$ 42,600
Net Assets	$ 64,555
Average Yield
Annual Net Assets	$ 6,456
Average Cash Flow (After Taxes)	$ 8,555
Average Annual Gain (After Taxes)	$ 15,010
Average Annual Yield (After Taxes)	7.51 %

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.

Lender Summary for Loan1

Financing of: Purchase price
Type: Amortized
Amortization: 30 years

Loan Assumptions		% of ARV
After Repair Value	$ 200,000	100.00 %
Purchase Price	$ 200,000	100.00 %
Purchase Costs	$ 2,600	1.30 %
Repair Costs	$ 0	0.00 %
Holding Costs	$ 0	0.00 %
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 202,600	101.30 %
Financed Amount	$ 200,000	100.00 %
Down payment (20%)	$ 40,000	20.00 %
Loan Amount	$ 160,000	80.00 %

Lender Returns
Interest Rate	10.00 %
Interest Income	$ 345,481
Total Income to Lender	$ 345,481
Lender's ROI	215.93 %
Lender's Annualized ROI	7.20 %

Property Report: 3300 Flowertree Rd, Belle Isle RENTAL

Property Report :

3300 Flowertree Rd, Belle Isle, FL 32812

Executive Summary