Property Report :

Lisi

38 Kittredge Street, Peabody, MA, USA, Boston, MA 02131

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Real Estate Analysis

Created on: Apr 16, 2025

Author: Jeff Crawford

38 Kittredge Street, Peabody, MA, USA, Boston, MA 02131

Condominium:

Investment strategy: Rental Property

Purchase Price$ 480,000

Rent$ 3,000/mo

Monthly Cash Flow$ 84

Cash on Cash Return0.97 %

Financial Analysis

Cash on Cash Return	0.97 %
Internal Rate of Return (IRR)	10.89 %
Capitalization Rate	4.45 %
Gross Rent Multiplier (GRM)	13.33
Debt-coverage Ratio (DCR)	1.05
Operating Expense Ratio (OER)	37.49 %
After Repair Value	$ 480,000

Financial Breakdown

Purchase Price	$ 480,000
Purchase Costs	$ 7,500
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).	$ 487,500
Financing	$ 384,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 103,500
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.	$ 96,000
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.	$ 7,500

Operating Analysis

Rent	$ 3,000/mo
Gross Operating Income (GOI)	$ 34,200
Total Expenses	$ 12,820
Net Operating Income (NOI)	$ 21,380
Annual Debt Service	$ 20,372
Cash Flow Before Taxes (CFBT)	$ 1,008
Income Tax Liability	$ -1,357
Cash Flow After Taxes (CFAT)	$ 2,365

Purchase Price	$ 480,000
Address	38 Kittredge Street, Peabody, MA, USA , Boston, 02131, MA
Type	Condominium

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.	$ 36,000
Total Gross Income	$ 36,000
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.	$ 1,800
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.	$ 34,200	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	$ 3,420	10.00 %
Utilities	$ 2,400	7.02 %
Insurance	$ 1,200	3.51 %
Repairs	$ 2,000	5.85 %
Property tax	$ 3,800	11.11 %
Total Expenses	$ 12,820	37.49 %
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.	$ 21,380	62.51 %

Cash Flow (Year 1)

Net Operating Income	$ 21,380	62.51 %
Annual Debt Service	$ 20,372	59.57 %
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.	$ 1,008	2.95 %
Income Tax Liability	$ -1,357	-3.97 %
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.	$ 2,365	6.92 %

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).	37.49 %
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.	97.05 %

Year	0	1	2	3
Operational Analysis
Gross Scheduled Income	0	36,000	36,720	37,454
Vacancy Loss	0	1,800	1,836	1,873
Gross Operating Income	0	34,200	34,884	35,582
Expenses	0	12,820	13,076	13,338
Net Operating Income	0	21,380	21,808	22,244
Loan Payment	0	20,372	20,372	20,372
Payment Interest Part	0	12,844	12,586	12,319
Payment Principal Part	0	7,528	7,786	8,052
Cash Flow
Repairs/Construction	0	0	0	0
Cash Flow Before Taxes	-103,500	1,008	1,436	1,872
Depreciation	0	13,964	13,964	13,964
Taxes	0	-1,357	-1,186	-1,010
Cash Flow After Taxes	-103,500	2,365	2,621	2,882

Note: All amounts in the table above are in $

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