RENTAL: 3439 Cornell Rd, Sharonville OH 45241

3439 Cornell Rd, Sharonville, OH 45241

Singlefamily: 3 bedrooms , 1 bathroom

Year built: 1911, Size: 1510 SF

Investment strategy: Rental Property

Purchase Price$ 225,000

Rent$ 1,575/mo

Monthly Cash Flow$ 27

Cash on Cash Return0.68 %

Financial Analysis

Cash on Cash Return	0.68 %
Internal Rate of Return (IRR)	13.67 %
Capitalization Rate	5.98 %
Gross Rent Multiplier (GRM)	11.90
Debt-coverage Ratio (DCR)	1.02
Operating Expense Ratio (OER)	28.77 %

Financial Breakdown

Purchase Price	$ 225,000
Purchase Costs	$ 2,200
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).	$ 227,200
Financing	$ 180,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 47,200
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.	$ 45,000
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.	$ 2,200

Operating Analysis

Rent	$ 1,575/mo
Gross Operating Income (GOI)	$ 18,900
Total Expenses	$ 5,438
Net Operating Income (NOI)	$ 13,462
Annual Debt Service	$ 13,141
Cash Flow Before Taxes (CFBT)	$ 321
Income Tax Liability	$ -1,017
Cash Flow After Taxes (CFAT)	$ 1,338

Nice renovation. Hardwood floors throughout. New kitchen and bath. New stainless steel appliances and more. Large 3 car detached garage with new siding and new garage doors will be installed by sept.15.

Purchase Price	$ 225,000
Address	3439 Cornell Rd , Sharonville, 45241, OH
MLS^® #	1746768
Listing Agent	Timothy Shrout
Listing Broker	Keller Williams Distinctive Re
Year Built	1911
Type	Singlefamily
Size	1510 SF
Bedrooms	3
Bathrooms	1

Property History

Date	Price	Change	Event
7/12/2022
7/1/2022

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.	$ 18,900
Total Gross Income	$ 18,900
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.	$ 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).
Repairs	$ 378	2.00 %
Property tax	$ 4,388	23.22 %
Insurance	$ 672	3.56 %
Total Expenses	$ 5,438	28.77 %
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.	$ 13,462	71.23 %

Cash Flow (Year 1)

Net Operating Income	$ 13,462	71.23 %
Annual Debt Service	$ 13,141	69.53 %
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.	$ 321	1.70 %
Income Tax Liability	$ -1,017	-5.38 %
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.	$ 1,338	7.08 %

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).	28.77 %
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.	98.30 %

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.	$ 50,278
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.	13.67 %
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	2.07
Annual Depreciation	$ 6,545

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.	0.68 %
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.	14.98 %
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.	5.98 %
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.	8.40 %
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.	11.90

Financing
Down Payment		$ 45,000
Loan		$ 180,000
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		1.02

Loan Financing of: Purchase price ($ 225,000)
Type	Amortized
Loan Amount	$ 180,000
Down payment (20%)	$ 45,000
Amortization	30 years
Interest Rate	6.14 %
Monthly Payment	$ 1,095.10

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	18,900	19,278	19,664	20,057	20,458	20,867	21,284	21,710	22,144	22,587
Vacancy Loss	0	0	0	0	0	0	0	0	0	0	0
Gross Operating Income	0	18,900	19,278	19,664	20,057	20,458	20,867	21,284	21,710	22,144	22,587
Expenses	0	5,438	5,547	5,658	5,771	5,886	6,004	6,124	6,247	6,371	6,499
Net Operating Income	0	13,462	13,731	14,006	14,286	14,572	14,863	15,160	15,464	15,773	16,088
Loan Payment	0	13,141	13,141	13,141	13,141	13,141	13,141	13,141	13,141	13,141	13,141
Payment Interest Part	0	10,987	10,851	10,706	10,552	10,389	10,215	10,030	9,834	9,625	9,403
Payment Principal Part	0	2,154	2,290	2,435	2,589	2,752	2,926	3,111	3,307	3,516	3,738
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-47,200	321	590	865	1,145	1,431	1,722	2,019	2,322	2,632	2,947
Depreciation	0	6,545	6,545	6,545	6,545	6,545	6,545	6,545	6,545	6,545	6,545
Taxes	0	-1,017	-916	-811	-703	-591	-474	-354	-229	-99	35
Cash Flow After Taxes	-47,200	1,338	1,506	1,676	1,848	2,021	2,196	2,373	2,551	2,731	2,912

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%)	$ 302,381
Cap Rate (5.98%) & NOI	$ 269,036
Gross Rent Multiplier	$ 268,788

Sale Proceeds

Projected Selling Price	$ 302,381
Costs of Sale (6.00%)	$ 18,143
1. Loan Balance Payoff	$ 151,182
Net Sale Proceeds Before Tax	$ 133,056

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	$ 133,056
Investor Cash Outlay	$ 47,200
Net Assets	$ 85,856
Average Yield
Annual Net Assets	$ 8,586
Average Cash Flow (After Taxes)	$ 1,824
Average Annual Gain (After Taxes)	$ 10,410
Average Annual Yield (After Taxes)	4.63 %

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: RENTAL RENTAL

Property Report :

RENTAL

3439 Cornell Rd, Sharonville, OH 45241

Executive Summary

3439 Cornell Rd, Sharonville, OH 45241

Financial Analysis

Financial Breakdown

Total Capital Needed

Total Capital Needed

Cash out of Pocket

Cash out of Pocket

Cash at Closing

Cash at Closing

Cash During Rehab

Cash During Rehab

Operating Analysis

Property Description

Property History

Operating Analysis

Annual Property Operating Data

Gross Scheduled Income (GSI)

Gross Scheduled Income (GSI)

Vacancy and Credit Loss

Vacancy and Credit Loss

Gross Operating Income (GOI)

Gross Operating Income (GOI)

Operating Expenses

Operating Expenses

Net Operating Income (NOI)

Net Operating Income (NOI)

Cash Flow (Year 1)

Cash Flow

Cash Flow

Cash Flow

Cash Flow

Operating Ratios

Operating Expense Ratio

Operating Expense Ratio

Break-Even Ratio (BER)

Break-Even Ratio (BER)

Financial Analysis

Financial Measures

Net Present Value (NPV)

Net Present Value (NPV)

Internal Rate of Return (IRR)

Internal Rate of Return (IRR)

Profitability Index

Profitability Index

Investment Return Ratios

Cash on Cash Return

Cash on Cash Return

Return on Investment

Return on Investment

Capitalization Rate

Capitalization Rate

Gross Rental Yield

Gross Rental Yield

Gross Rent Multiplier (GRM)

Gross Rent Multiplier (GRM)

Financing Overview

Loan to Value Ratio

Loan to Value Ratio

Loan to Cost Ratio

Loan to Cost Ratio

Long-term Cash Flow Forecast

Resale Analysis

Resale Price Evaluation Methods

Sale Proceeds

Net Assets and Yield

Photos