3846 Moran Way, Peachtree Corners GA 30092

3846 Moran Way, Peachtree Corners, GA 30092

Multifamily: 8 bedrooms , 8 bathrooms

Year built: 1982,

Investment strategy: Rental Property

Purchase Price$ 650,000

Rent$ 7,200/mo

Monthly Cash Flow$ 1,012

Cash on Cash ReturnInfinite

Financial Analysis

Cash on Cash Return	Infinite
Internal Rate of Return (IRR)	N/A
Capitalization Rate	9.85 %
Gross Rent Multiplier (GRM)	7.52
Debt-coverage Ratio (DCR)	1.23
Operating Expense Ratio (OER)	21.99 %

Financial Breakdown

Purchase Price	$ 650,000
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).	$ 650,000
Financing	$ 650,000
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	$ 7,200/mo
Gross Operating Income (GOI)	$ 82,080
Total Expenses	$ 18,048
Net Operating Income (NOI)	$ 64,032
Annual Debt Service	$ 51,894
Cash Flow Before Taxes (CFBT)	$ 12,138
Income Tax Liability	$ -42
Cash Flow After Taxes (CFAT)	$ 12,180

This 4-unit Quadruplex is a great income producing asset. Currently, Unit A/ B are renting to long-term tenants, and Unit C/ D are renting to medium-term tenants. Each unit has 2 master bedrooms with its own private bathroom and a half bath in the main level. Unit C and D are newly renovated to modern style, and both units are fully furnished with modern furnitures, and all furniture will come with the sale. All of the HVAC units are well maintained and recently serviced. All units have new stainless steal appliances, LVP flooring, 2-3 years old carpet upstairs. No HOA, no rent restrictions. This is a great opportunity to own a very limited number of quadruplex in the area. Tenants are currently occupying in the property. Please do not disturb them. Showing during due diligence period only.

Purchase Price	$ 650,000
Address	3846 Moran Way , Peachtree Corners, 30092, GA
MLS^® #	7194067
Listing Agent	Jason Nguyen
Listing Broker	STRONG TOWER REALTY INC
Year Built	1982
Type	Multifamily
Number of Units	4
Bedrooms	8
Bathrooms	8

Property History

Date	Price	Change	Event
5/28/2020
5/20/2019
4/17/2019
12/28/2004
8/10/1982

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.	$ 86,400
Total Gross Income	$ 86,400
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.	$ 4,320
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.	$ 82,080	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	$ 4,104	5.00 %
Repairs	$ 3,283	4.00 %
Property tax	$ 7,949	9.68 %
Insurance	$ 2,712	3.30 %
Total Expenses	$ 18,048	21.99 %
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.	$ 64,032	78.01 %

Cash Flow (Year 1)

Net Operating Income	$ 64,032	78.01 %
Annual Debt Service	$ 51,894	63.22 %
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.	$ 12,138	14.79 %
Income Tax Liability	$ -42	-0.05 %
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.	$ 12,180	14.84 %

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).	21.99 %
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.	85.21 %

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.	$ 682,387
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	$ 18,909

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.	9.85 %
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.	13.29 %
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.	7.52

Financing
Down Payment		$ 0
Loan		$ 650,000
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		1.23

Loan Financing of: Purchase price ($ 650,000)
Type	Amortized
Loan Amount	$ 650,000
Down payment (0%)	$ 0
Amortization	30 years
Interest Rate	7.00 %
Monthly Payment	$ 4,324.47

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	86,400	88,128	89,891	91,688	93,522	95,393	97,300	99,246	101,231	103,256	105,321	107,428	109,576	111,768	114,003	116,283	118,609	120,981	123,400	125,868	128,386	130,954	133,573	136,244	138,969	141,748	144,583	147,475	150,424	153,433
Vacancy Loss	0	4,320	4,406	4,495	4,584	4,676	4,770	4,865	4,962	5,062	5,163	5,266	5,371	5,479	5,588	5,700	5,814	5,930	6,049	6,170	6,293	6,419	6,548	6,679	6,812	6,948	7,087	7,229	7,374	7,521	7,672
Gross Operating Income	0	82,080	83,722	85,396	87,104	88,846	90,623	92,435	94,284	96,170	98,093	100,055	102,056	104,097	106,179	108,303	110,469	112,678	114,932	117,230	119,575	121,967	124,406	126,894	129,432	132,021	134,661	137,354	140,101	142,903	145,761
Expenses	0	18,048	18,409	18,777	19,153	19,536	19,927	20,325	20,732	21,146	21,569	22,001	22,441	22,889	23,347	23,814	24,290	24,776	25,272	25,777	26,293	26,819	27,355	27,902	28,460	29,029	29,610	30,202	30,806	31,422	32,051
Net Operating Income	0	64,032	65,312	66,619	67,951	69,310	70,696	72,110	73,552	75,023	76,524	78,054	79,616	81,208	82,832	84,489	86,178	87,902	89,660	91,453	93,282	95,148	97,051	98,992	100,972	102,991	105,051	107,152	109,295	111,481	113,711
Loan Payment	0	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894	51,894
Payment Interest Part	0	45,291	44,814	44,302	43,753	43,164	42,533	41,857	41,131	40,353	39,519	38,624	37,665	36,636	35,534	34,351	33,083	31,723	30,265	28,701	27,025	25,227	23,299	21,232	19,015	16,639	14,090	11,357	8,427	5,285	1,915
Payment Principal Part	0	6,603	7,080	7,592	8,141	8,729	9,360	10,037	10,762	11,540	12,375	13,269	14,229	15,257	16,360	17,543	18,811	20,171	21,629	23,192	24,869	26,667	28,595	30,662	32,878	35,255	37,804	40,536	43,467	46,609	49,978
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	12,138	13,419	14,725	16,057	17,416	18,803	20,217	21,659	23,130	24,630	26,161	27,722	29,314	30,938	32,595	34,285	36,008	37,766	39,560	41,389	43,254	45,157	47,098	49,078	51,098	53,157	55,258	57,401	59,587	61,817
Depreciation	0	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909	18,909
Taxes	0	-42	397	852	1,322	1,809	2,313	2,836	3,378	3,940	4,524	5,130	5,760	6,416	7,097	7,807	8,547	9,318	10,122	10,961	11,837	12,753	13,711	14,713	15,762	16,861	18,013	19,221	20,490	21,822	23,222
Cash Flow After Taxes	0	12,180	13,021	13,873	14,735	15,607	16,489	17,380	18,281	19,190	20,106	21,031	21,962	22,899	23,841	24,788	25,738	26,691	27,645	28,599	29,551	30,501	31,447	32,386	33,316	34,237	35,144	36,037	36,912	37,766	38,595

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%)	$ 1,577,721
Cap Rate (9.85%) & NOI	$ 1,154,422
Gross Rent Multiplier	$ 1,153,816

Sale Proceeds

Projected Selling Price	$ 1,577,721
Costs of Sale (6.00%)	$ 94,663
Net Sale Proceeds Before Tax	$ 1,483,058

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	$ 1,483,058
Investor Cash Outlay	$ 0
Net Assets	$ 1,483,058
Average Yield
Annual Net Assets	$ 49,435
Average Cash Flow (After Taxes)	$ 24,045
Average Annual Gain (After Taxes)	$ 73,480
Average Annual Yield (After Taxes)	11.30 %

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: 3846 Moran Way, Peachtree Corners RENTAL

Property Report :

3846 Moran Way, Peachtree Corners, GA 30092

Executive Summary