3743 N Celtic Dr, Indianapolis IN 46235

3743 N Celtic Dr, Indianapolis, IN 46235

Singlefamily: 3 bedrooms , 1.5 bathrooms

Year built: 1962, Size: 1504 SF

Investment strategy: Rental Property

Purchase Price$ 120,000

Rent$ 1,178/mo

Monthly Cash Flow$ 785

Cash on Cash Return39.25 %

Financial Analysis

Cash on Cash Return	39.25 %
Internal Rate of Return (IRR)	34.91 %
Capitalization Rate	7.85 %
Gross Rent Multiplier (GRM)	8.49
Debt-coverage Ratio (DCR)	0.00
Operating Expense Ratio (OER)	25.95 %

Financial Breakdown

Purchase Price	$ 120,000
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).	$ 120,000
Financing	$ 96,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 24,000
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.	$ 24,000
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.	$ 0

Operating Analysis

Rent	$ 1,178/mo
Gross Operating Income (GOI)	$ 12,722
Total Expenses	$ 3,301
Net Operating Income (NOI)	$ 9,421
Annual Debt Service	$ 0
Cash Flow Before Taxes (CFBT)	$ 9,421
Income Tax Liability	$ 1,483
Cash Flow After Taxes (CFAT)	$ 7,939

Come see this great 3 bed 1 1/2 bath family home with plenty of space on the bottom floor. Nice size kitchen with an additional utility/laundry room. 2 car attached garage and large fenced in backyard that includes a storage shed. This would make a great first home or rental property!

Purchase Price	$ 120,000
Address	3743 N Celtic Dr , Indianapolis, 46235, IN
MLS^® #	21802056
Listing Agent	La Tasha Freeman
Listing Broker	Scott Estates
Year Built	1962
Type	Singlefamily
Size	1504 SF
Bedrooms	3
Bathrooms	1.5

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.	$ 14,136
Total Gross Income	$ 14,136
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.	$ 1,414
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.	$ 12,722	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	$ 948	7.45 %
Property tax	$ 2,233	17.55 %
Insurance	$ 120	0.94 %
Total Expenses	$ 3,301	25.95 %
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.	$ 9,421	74.05 %

Cash Flow (Year 1)

Net Operating Income	$ 9,421	74.05 %
Annual Debt Service	$ 0	0.00 %
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.	$ 9,421	74.06 %
Income Tax Liability	$ 1,483	11.65 %
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.	$ 7,939	62.40 %

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).	25.95 %
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.	25.95 %

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.	$ 167,374
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.	34.91 %
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	7.97
Annual Depreciation	$ 3,491

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.	39.25 %
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.	54.25 %
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.	7.85 %
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.	11.78 %
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.	8.49

Financing
Down Payment		$ 24,000
30y		$ 96,000
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		0.00

30y Financing of: Purchase price ($ 120,000)
Type	Amortized
Loan Amount	$ 96,000
Down payment (20%)	$ 24,000
Amortization	30 years
Interest Rate	0.00 %
Monthly Payment	$ 0.00

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	14,136	14,419	14,707	15,001	15,301	15,607	15,919	16,238	16,563	16,894	17,232	17,576	17,928	18,286	18,652	19,025	19,406	19,794	20,190	20,593	21,005	21,425	21,854	22,291	22,737	23,192	23,655	24,129	24,611	25,103
Vacancy Loss	0	1,414	1,442	1,471	1,500	1,530	1,561	1,592	1,624	1,656	1,689	1,723	1,758	1,793	1,829	1,865	1,903	1,941	1,979	2,019	2,059	2,101	2,143	2,185	2,229	2,274	2,319	2,366	2,413	2,461	2,510
Gross Operating Income	0	12,722	12,977	13,236	13,501	13,771	14,047	14,327	14,614	14,906	15,204	15,509	15,819	16,135	16,458	16,787	17,123	17,465	17,814	18,171	18,534	18,905	19,283	19,669	20,062	20,463	20,872	21,290	21,716	22,150	22,593
Expenses	0	3,301	3,367	3,434	3,503	3,573	3,645	3,717	3,792	3,868	3,945	4,024	4,104	4,186	4,270	4,356	4,443	4,532	4,622	4,715	4,809	4,905	5,003	5,103	5,205	5,309	5,416	5,524	5,634	5,747	5,862
Net Operating Income	0	9,421	9,610	9,802	9,998	10,198	10,402	10,610	10,822	11,039	11,259	11,485	11,714	11,949	12,188	12,431	12,680	12,934	13,192	13,456	13,725	14,000	14,280	14,565	14,857	15,154	15,457	15,766	16,081	16,403	16,731
Loan Payment	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
Payment Interest Part	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
Payment Principal Part	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	96,000
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	-24,000	9,421	9,610	9,802	9,998	10,198	10,402	10,610	10,822	11,039	11,259	11,485	11,714	11,949	12,188	12,431	12,680	12,934	13,192	13,456	13,725	14,000	14,280	14,565	14,857	15,154	15,457	15,766	16,081	16,403	16,731
Depreciation	0	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491	3,491
Taxes	0	1,483	1,530	1,578	1,627	1,677	1,728	1,780	1,833	1,887	1,942	1,998	2,056	2,114	2,174	2,235	2,297	2,361	2,425	2,491	2,559	2,627	2,697	2,769	2,841	2,916	2,991	3,069	3,148	3,228	3,310
Cash Flow After Taxes	-24,000	7,939	8,080	8,224	8,371	8,521	8,674	8,830	8,989	9,152	9,317	9,486	9,658	9,834	10,013	10,196	10,383	10,573	10,767	10,965	11,167	11,373	11,583	11,797	12,015	12,238	12,465	12,697	12,934	13,175	13,421

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%)	$ 291,271
Cap Rate (7.85%) & NOI	$ 213,133
Gross Rent Multiplier	$ 213,127

Sale Proceeds

Projected Selling Price	$ 291,271
Costs of Sale (6.00%)	$ 17,476
1. Loan Balance Payoff	$ 96,000
Net Sale Proceeds Before Tax	$ 177,795

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	$ 177,795
Investor Cash Outlay	$ 24,000
Net Assets	$ 153,795
Average Yield
Annual Net Assets	$ 5,127
Average Cash Flow (After Taxes)	$ 9,981
Average Annual Gain (After Taxes)	$ 15,107
Average Annual Yield (After Taxes)	12.59 %

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: 3743 N Celtic Dr, Indianapolis RENTAL

Property Report :

3743 N Celtic Dr, Indianapolis, IN 46235

Executive Summary