3919 E Gatewood Ln, Silverton OH 45236

3919 E Gatewood Ln, Silverton, OH 45236

Multifamily: 6 bedrooms , 4 bathrooms

Year built: 1954,

Investment strategy: Rental Property

Purchase Price$ 385,000

Rent$ 3,077/mo

Monthly Cash Flow$ -377

Cash on Cash Return-23.49 %

Financial Analysis

Cash on Cash Return	-23.49 %
Internal Rate of Return (IRR)	27.95 %
Capitalization Rate	6.41 %
Gross Rent Multiplier (GRM)	10.43
Debt-coverage Ratio (DCR)	0.85
Operating Expense Ratio (OER)	29.65 %

Financial Breakdown

Purchase Price	$ 385,000
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).	$ 385,000
Financing	$ 365,750
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 19,250
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.	$ 19,250
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	$ 3,077/mo
Gross Operating Income (GOI)	$ 35,078
Total Expenses	$ 10,400
Net Operating Income (NOI)	$ 24,678
Annual Debt Service	$ 29,200
Cash Flow Before Taxes (CFBT)	$ -4,522
Income Tax Liability	$ -3,002
Cash Flow After Taxes (CFAT)	$ -1,521

Incredible Investment Opportunity with Four Plex Offering Two 2 Bedroom/1 Bath and Two 1 Bedroom/1 Bath Units Hardwood Flooring Ample Parking Including 4 Car Garage Short Drive to Dining, Shops & Expressway

Purchase Price	$ 385,000
Address	3919 E Gatewood Ln , Silverton, 45236, OH
MLS^® #	1821820
Listing Agent	Dianna Caldwell - eXp Realty
Year Built	1954
Type	Multifamily
Number of Units
Bedrooms	6
Bathrooms	4

Property History

Date	Price	Event
10/28/2024	395000	Listed
7/6/2022	312000	Sold
7/1/2022		Listing removed
5/8/2022	315000	Listed
8/10/2014	124500	Sold
8/4/2014	139000	Listing removed
6/24/2014	139000	Listed
6/9/1992	118000	Sold
10/17/1988	108000	Sold
5/31/1979	52000	Sold

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.	$ 36,924
Total Gross Income	$ 36,924
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.	$ 1,846
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.	$ 35,078	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).
Utilities	$ 2,400	6.84 %
Insurance	$ 2,000	5.70 %
Property tax	$ 6,000	17.10 %
Total Expenses	$ 10,400	29.65 %
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.	$ 24,678	70.35 %

Cash Flow (Year 1)

Net Operating Income	$ 24,678	70.35 %
Annual Debt Service	$ 29,200	83.24 %
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.	$ -4,522	-12.89 %
Income Tax Liability	$ -3,002	-8.56 %
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.	$ -1,521	-4.33 %

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).	29.65 %
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.	112.89 %

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.	$ 35,647
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.	27.95 %
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	2.85
Annual Depreciation	$ 11,200

Holding period of 5 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.	-23.49 %
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.	36.51 %
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.	6.41 %
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.	9.59 %
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.	10.43

Financing
Down Payment		$ 19,250
Loan		$ 365,750
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.		95.00 %
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).		95.00 %
Debt Coverage Ratio		0.85

Loan Financing of: Purchase price ($ 385,000)
Type	Amortized
Loan Amount	$ 365,750
Down payment (5%)	$ 19,250
Amortization	30 years
Interest Rate	7.00 %
Monthly Payment	$ 2,433.34

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
Operational Analysis
Gross Scheduled Income	0	36,924	37,662	38,416	39,184	39,968
Vacancy Loss	0	1,846	1,883	1,921	1,959	1,998
Gross Operating Income	0	35,078	35,779	36,495	37,225	37,969
Expenses	0	10,400	10,608	10,820	11,037	11,257
Net Operating Income	0	24,678	25,171	25,675	26,188	26,712
Loan Payment	0	29,200	29,200	29,200	29,200	29,200
Payment Interest Part	0	25,485	25,216	24,928	24,619	24,288
Payment Principal Part	0	3,715	3,984	4,272	4,581	4,912
Cash Flow
Repairs/Construction	0	0	0	0	0	0
Cash Flow Before Taxes	-19,250	-4,522	-4,029	-3,525	-3,012	-2,488
Depreciation	0	11,200	11,200	11,200	11,200	11,200
Taxes	0	-3,002	-2,811	-2,613	-2,408	-2,194
Cash Flow After Taxes	-19,250	-1,521	-1,218	-912	-604	-294

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 5 years. Below is the resale price calculated using different methods.

Appreciation (3.00%)	$ 446,321
Cap Rate (6.41%) & NOI	$ 416,725
Gross Rent Multiplier	$ 416,863

Sale Proceeds

Projected Selling Price	$ 446,321
Costs of Sale (6.00%)	$ 26,779
1. Loan Balance Payoff	$ 344,286
Net Sale Proceeds Before Tax	$ 75,255

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	$ 75,255
Investor Cash Outlay	$ 19,250
Net Assets	$ 56,005
Average Yield
Annual Net Assets	$ 11,201
Average Cash Flow (After Taxes)	$ -851
Average Annual Gain (After Taxes)	$ 10,350
Average Annual Yield (After Taxes)	2.69 %

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: 3919 E Gatewood Ln, Silverton RENTAL

Property Report :

3919 E Gatewood Ln, Silverton, OH 45236

Executive Summary