36 Cinnamon Beach Way, Palm Coast FL 32137

36 Cinnamon Beach Way, Palm Coast, FL 32137

Singlefamily: 5 bedrooms , 4.5 bathrooms

Year built: 2018, Size: 3167 SF

Investment strategy: Rental Property

Purchase Price$ 1,299,000

Rent$ 15,000/mo

Monthly Cash Flow$ 4,527

Cash on Cash Return13.94 %

Financial Analysis

Cash on Cash Return	13.94 %
Internal Rate of Return (IRR)	17.79 %
Capitalization Rate	9.49 %
Gross Rent Multiplier (GRM)	7.22
Debt-coverage Ratio (DCR)	1.79
Operating Expense Ratio (OER)	31.50 %

Financial Breakdown

Purchase Price	$ 1,299,000
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).	$ 1,299,000
Financing	$ 909,300
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 389,700
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.	$ 389,700
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	$ 15,000/mo
Gross Operating Income (GOI)	$ 180,000
Total Expenses	$ 56,708
Net Operating Income (NOI)	$ 123,292
Annual Debt Service	$ 68,969
Cash Flow Before Taxes (CFBT)	$ 54,323
Income Tax Liability	$ 6,674
Cash Flow After Taxes (CFAT)	$ 47,649

Cinnamon Beach is a one-of-a-kind community within the Hammock Beach luxury gated community, where unlimited short term rentals are allowed, the amenities are amazing, and the beach access is less than 5 minutes away!. 'Deja Blue House' was built in 2018. This two story lake view home was designed for first floor living and short term rental income. There are two Primary Bedrooms, one of each floor, with ensuite bathrooms, walk-in closets, separate tub and shower, dual sinks for each. Bedroom 3 also has an ensuite bath. Bedrooms 4 & 5 share a jack/jill bath. 4 of the 5 bedrooms have King Beds, Bedroom 5 had a twin and a trundle twin bed. There is a powder room on the main floor, easily accessed from the pool. Open concept Great Room/Kitchen/Dining area with a massive island that has seating for 4. Family room upstairs with covered balcony and open deck, perfect for lounging and afternoon cocktails! Laundry in first floor primary bedroom, and second Laundry Closet upstairs. Heated Salt Water Pool and Spa, Screen Enclosure, Outdoor Shower. The attention to detail and unique finishes will make you fall in love! Cinnamon Beach amenities are second to none, including an oceanfront pool complex with beach access, hot tub, and bar. The lakeside pool complex includes 2 pools, a restaurant, kids splash zone, hot tub, fitness center, lounge, kids arcade, onsite management office, business center, and more! Live here full-time, Live/rent part-time, or rent full-time--the choice is yours. Join the renowned Ocean Hammock Resort, enjoy St Augustine restaurants and nightlife-live the lifestyle you have always wanted! Quarterly HOA fees include Cinnamon Beach amenities and landscape maintenance.

Purchase Price	$ 1,299,000
Address	36 Cinnamon Beach Way , Palm Coast, 32137, FL
MLS^® #	FC288122
Listing Agent	Lauraine Holden
Listing Broker	BERKSHIRE HATHAWAY HOMESERVICES PALM WEST REALTY
Year Built	2018
Type	Singlefamily
Size	3167 SF
Bedrooms	5
Bathrooms	4.5

Property History

Date	Price	Change	Event
8/27/2021
1/26/2017
8/25/2011
2/7/2006
8/25/2005
10/30/2002

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.	$ 180,000
Total Gross Income	$ 180,000
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.	$ 180,000	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	$ 36,000	20.00 %
Association fees	$ 5,124	2.85 %
Property tax	$ 9,068	5.04 %
Insurance	$ 6,516	3.62 %
Total Expenses	$ 56,708	31.50 %
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.	$ 123,292	68.50 %

Cash Flow (Year 1)

Net Operating Income	$ 123,292	68.50 %
Annual Debt Service	$ 68,969	38.32 %
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.	$ 54,323	30.18 %
Income Tax Liability	$ 6,674	3.71 %
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.	$ 47,649	26.47 %

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).	31.50 %
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.	69.82 %

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.	$ 815,319
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.	17.79 %
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	3.09
Annual Depreciation	$ 37,789

Holding period of 15 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.	13.94 %
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.	23.94 %
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.	9.49 %
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.	13.86 %
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.	7.22

Financing
Down Payment		$ 389,700
Loan		$ 909,300
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.		70.00 %
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).		70.00 %
Debt Coverage Ratio		1.79

Loan Financing of: Purchase price ($ 1,299,000)
Type	Amortized
Loan Amount	$ 909,300
Down payment (30%)	$ 389,700
Amortization	30 years
Interest Rate	6.50 %
Monthly Payment	$ 5,747.39

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
Operational Analysis
Gross Scheduled Income	0	180,000	183,600	187,272	191,017	194,838	198,735	202,709	206,763	210,899	215,117	219,419	223,807	228,284	232,849	237,506
Vacancy Loss	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Gross Operating Income	0	180,000	183,600	187,272	191,017	194,838	198,735	202,709	206,763	210,899	215,117	219,419	223,807	228,284	232,849	237,506
Expenses	0	56,708	57,842	58,999	60,179	61,383	62,610	63,862	65,140	66,442	67,771	69,127	70,509	71,919	73,358	74,825
Net Operating Income	0	123,292	125,758	128,273	130,838	133,455	136,124	138,847	141,624	144,456	147,345	150,292	153,298	156,364	159,491	162,681
Loan Payment	0	68,969	68,969	68,969	68,969	68,969	68,969	68,969	68,969	68,969	68,969	68,969	68,969	68,969	68,969	68,969
Payment Interest Part	0	58,805	58,125	57,398	56,623	55,797	54,915	53,973	52,969	51,897	50,754	49,534	48,233	46,844	45,362	43,781
Payment Principal Part	0	10,163	10,844	11,570	12,345	13,172	14,054	14,995	16,000	17,071	18,215	19,434	20,736	22,125	23,606	25,187
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-389,700	54,323	56,789	59,304	61,870	64,487	67,156	69,878	72,655	75,488	78,377	81,324	84,329	87,395	90,523	93,712
Depreciation	0	37,789	37,789	37,789	37,789	37,789	37,789	37,789	37,789	37,789	37,789	37,789	37,789	37,789	37,789	37,789
Taxes	0	6,674	7,461	8,271	9,107	9,967	10,855	11,771	12,716	13,692	14,701	15,742	16,819	17,933	19,085	20,278
Cash Flow After Taxes	-389,700	47,649	49,328	51,033	52,763	54,519	56,300	58,107	59,939	61,795	63,676	65,581	67,510	69,463	71,438	73,435

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 15 years. Below is the resale price calculated using different methods.

Appreciation (3.00%)	$ 2,023,800
Cap Rate (9.49%) & NOI	$ 1,714,238
Gross Rent Multiplier	$ 1,714,795

Sale Proceeds

Projected Selling Price	$ 2,023,800
Costs of Sale (6.00%)	$ 121,428
1. Loan Balance Payoff	$ 659,780
Net Sale Proceeds Before Tax	$ 1,242,592

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	$ 1,242,592
Investor Cash Outlay	$ 389,700
Net Assets	$ 852,892
Average Yield
Annual Net Assets	$ 56,859
Average Cash Flow (After Taxes)	$ 55,273
Average Annual Gain (After Taxes)	$ 112,133
Average Annual Yield (After Taxes)	8.63 %

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: 36 Cinnamon Beach Way, Palm Coast RENTAL

Property Report :

36 Cinnamon Beach Way, Palm Coast, FL 32137

Executive Summary