35082 Goldthread Ln, Murrieta CA 92563

35082 Goldthread Ln, Murrieta, CA 92563

Singlefamily: 5 bedrooms , 3 bathrooms

Year built: 2013, Size: 3114 SF

Investment strategy: Rental Property

Purchase Price$ 420,000

Rent$ 3,400/mo

Monthly Cash Flow$ 273

Cash on Cash ReturnInfinite

Financial Analysis

Cash on Cash Return	Infinite
Internal Rate of Return (IRR)	N/A
Capitalization Rate	5.37 %
Gross Rent Multiplier (GRM)	10.29
Debt-coverage Ratio (DCR)	1.17
Operating Expense Ratio (OER)	41.84 %

Financial Breakdown

Purchase Price	$ 420,000
Purchase Costs	$ 0
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).	$ 420,000
Financing	$ 420,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 0
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.	$ 0

Operating Analysis

Rent	$ 3,400/mo
Gross Operating Income (GOI)	$ 38,760
Total Expenses	$ 16,219
Net Operating Income (NOI)	$ 22,541
Annual Debt Service	$ 19,265
Cash Flow Before Taxes (CFBT)	$ 3,276
Income Tax Liability	$ 244
Cash Flow After Taxes (CFAT)	$ 3,032

35082 Goldthread Ln, Murrieta, CA 92563 is a single family home built in 2013. This property was last sold for $383,000 in 2013 and currently has an estimated value of $622,500. According to the Murrieta public records, the property at 35082 Goldthread Ln, Murrieta, CA 92563 has approximately 3114 square feet, 4 beds and 3 baths with a lot size of 6,970 square feet. Nearby schools include Lisa J. Mails Elementary School, Dorothy McElhinney Middle School and Vista Murrieta High School.

Purchase Price	$ 420,000
Address	35082 Goldthread Ln , Murrieta, 92563, CA
Year Built	2013
Type	Singlefamily
Size	3114 SF
Bedrooms	5
Bathrooms	3

Property History

Date	Price	Change	Event
12/20/2013
11/10/2013
10/20/2013
12/22/2011

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.	$ 40,800
Total Gross Income	$ 40,800
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.	$ 2,040
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.	$ 38,760	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	$ 1,428	3.68 %
Utilities	$ 1,200	3.10 %
Insurance	$ 1,320	3.41 %
Repairs	$ 1,200	3.10 %
Hoa	$ 1,440	3.72 %
Property tax	$ 9,631	24.85 %
Total Expenses	$ 16,219	41.84 %
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.	$ 22,541	58.16 %

Cash Flow (Year 1)

Net Operating Income	$ 22,541	58.16 %
Annual Debt Service	$ 19,265	49.70 %
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.	$ 3,276	8.45 %
Income Tax Liability	$ 244	0.63 %
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.	$ 3,032	7.82 %

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).	41.84 %
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.	91.55 %

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.	$ 324,279
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	N/A
Annual Depreciation	$ 12,218

Holding period of 30 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.	Infinite
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.	Infinite
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.	5.37 %
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.	9.71 %
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.	10.29

Financing
Down Payment		$ 0
Loan		$ 420,000
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.		100.00 %
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).		100.00 %
Debt Coverage Ratio		1.17

Loan Financing of: Purchase price ($ 420,000)
Type	Amortized
Loan Amount	$ 420,000
Down payment (0%)	$ 0
Amortization	30 years
Interest Rate	2.25 %
Monthly Payment	$ 1,605.43

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	21	22	23	24	25	26	27	28	29	30
Operational Analysis
Gross Scheduled Income	0	40,800	41,616	42,448	43,297	44,163	45,047	45,947	46,866	47,804	48,760	49,735	50,730	51,744	52,779	53,835	54,911	56,010	57,130	58,272	59,438	60,627	61,839	63,076	64,337	65,624	66,937	68,275	69,641	71,034	72,454
Vacancy Loss	0	2,040	2,081	2,122	2,165	2,208	2,252	2,297	2,343	2,390	2,438	2,487	2,537	2,587	2,639	2,692	2,746	2,801	2,857	2,914	2,972	3,031	3,092	3,154	3,217	3,281	3,347	3,414	3,482	3,552	3,623
Gross Operating Income	0	38,760	39,535	40,326	41,132	41,955	42,794	43,650	44,523	45,414	46,322	47,248	48,193	49,157	50,140	51,143	52,166	53,209	54,273	55,359	56,466	57,595	58,747	59,922	61,121	62,343	63,590	64,862	66,159	67,482	68,832
Expenses	0	16,219	16,543	16,874	17,212	17,556	17,907	18,265	18,631	19,003	19,383	19,771	20,166	20,570	20,981	21,401	21,829	22,265	22,711	23,165	23,628	24,101	24,583	25,074	25,576	26,087	26,609	27,141	27,684	28,238	28,802
Net Operating Income	0	22,541	22,992	23,452	23,921	24,399	24,887	25,385	25,893	26,410	26,939	27,477	28,027	28,587	29,159	29,742	30,337	30,944	31,563	32,194	32,838	33,495	34,165	34,848	35,545	36,256	36,981	37,721	38,475	39,244	40,029
Loan Payment	0	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265	19,265
Payment Interest Part	0	9,348	9,123	8,892	8,656	8,415	8,168	7,916	7,658	7,394	7,124	6,848	6,566	6,277	5,982	5,680	5,371	5,056	4,733	4,402	4,064	3,719	3,365	3,004	2,634	2,256	1,869	1,474	1,069	656	233
Payment Principal Part	0	9,917	10,143	10,373	10,609	10,850	11,097	11,349	11,607	11,871	12,141	12,417	12,699	12,988	13,283	13,585	13,894	14,210	14,533	14,863	15,201	15,546	15,900	16,261	16,631	17,009	17,396	17,791	18,196	18,609	19,032
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	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	0	3,276	3,727	4,186	4,655	5,134	5,622	6,120	6,627	7,145	7,673	8,212	8,762	9,322	9,894	10,477	11,072	11,679	12,298	12,929	13,573	14,230	14,899	15,583	16,280	16,991	17,716	18,455	19,210	19,979	20,764
Depreciation	0	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218	12,218
Taxes	0	244	413	585	762	941	1,125	1,313	1,504	1,700	1,899	2,103	2,311	2,523	2,740	2,961	3,187	3,418	3,653	3,893	4,139	4,390	4,645	4,907	5,173	5,445	5,723	6,007	6,297	6,593	6,895
Cash Flow After Taxes	0	3,032	3,314	3,601	3,894	4,192	4,497	4,807	5,123	5,446	5,774	6,109	6,451	6,799	7,154	7,516	7,885	8,261	8,645	9,035	9,434	9,840	10,254	10,676	11,107	11,545	11,992	12,448	12,913	13,387	13,869

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 30 years. Below is the resale price calculated using different methods.

Appreciation (3.00%)	$ 1,019,450
Cap Rate (5.37%) & NOI	$ 745,425
Gross Rent Multiplier	$ 745,556

Sale Proceeds

Projected Selling Price	$ 1,019,450
Costs of Sale (6.00%)	$ 61,167
Net Sale Proceeds Before Tax	$ 958,283

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	$ 958,283
Investor Cash Outlay	$ 0
Net Assets	$ 958,283
Average Yield
Annual Net Assets	$ 31,943
Average Cash Flow (After Taxes)	$ 7,504
Average Annual Gain (After Taxes)	$ 39,447
Average Annual Yield (After Taxes)	9.39 %

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: 35082 Goldthread Ln, Murrieta RENTAL

Property Report :

35082 Goldthread Ln, Murrieta, CA 92563

Executive Summary