405 S Husband St, Stillwater OK 74074

405 S Husband St, Stillwater, OK 74074

Singlefamily: 4 bedrooms , 2 bathrooms

Year built: 1939, Size: 1842 SF

Investment strategy: Rental Property

Purchase Price$ 210,000

Rent$ 1,600/mo

Monthly Cash Flow$ 295

Cash on Cash Return7.78 %

Financial Analysis

Cash on Cash Return	7.78 %
Internal Rate of Return (IRR)	17.30 %
Capitalization Rate	5.73 %
Gross Rent Multiplier (GRM)	10.94
Debt-coverage Ratio (DCR)	1.42
Operating Expense Ratio (OER)	33.99 %

Financial Breakdown

Purchase Price	$ 210,000
Purchase Costs	$ 3,500
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).	$ 213,500
Financing	$ 168,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 45,500
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.	$ 42,000
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.	$ 3,500

Operating Analysis

Rent	$ 1,600/mo
Gross Operating Income (GOI)	$ 18,240
Total Expenses	$ 6,199
Net Operating Income (NOI)	$ 12,041
Annual Debt Service	$ 8,500
Cash Flow Before Taxes (CFBT)	$ 3,541
Income Tax Liability	$ 235
Cash Flow After Taxes (CFAT)	$ 3,306

Campus and Downtown convenience, walking distance to both! Four bedrooms and a large updated kitchen. Pretty hardwood floors and renovated bathrooms, tile shower, new vanities, ceramic tile floors. Fun deck plus covered porch with fenced yard.. Separate entrances for two of the bedrooms. New DaVinci slate look roof installed in 2014, plus new plumbing, electrical and HVAC in 2014. Perfect for investor, college parent, game day house or VRBO type arrangement. Absolutely move in ready!

Purchase Price	$ 210,000
Address	405 S Husband St , Stillwater, 74074, OK
MLS^® #	123947
Listing Agent	PAGE PROVENCE CRS GRI E PRO BROKER ASSOCIATE
Listing Broker	FISHER PROVENCE REALTORS INC.
Year Built	1939
Type	Singlefamily
Size	1842 SF
Bedrooms	4
Bathrooms	2

Property History

Date	Price	Change	Event
10/18/2013
8/15/2006

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.	$ 19,200
Total Gross Income	$ 19,200
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.	$ 960
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.	$ 18,240	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	$ 1,824	10.00 %
Repairs	$ 912	5.00 %
Property tax	$ 912	5.00 %
Property tax	$ 1,375	7.54 %
Insurance	$ 1,176	6.45 %
Total Expenses	$ 6,199	33.99 %
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.	$ 12,041	66.01 %

Cash Flow (Year 1)

Net Operating Income	$ 12,041	66.01 %
Annual Debt Service	$ 8,500	46.60 %
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.	$ 3,541	19.42 %
Income Tax Liability	$ 235	1.29 %
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.	$ 3,306	18.13 %

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).	33.99 %
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.	80.58 %

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.	$ 69,596
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.	17.30 %
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	2.53
Annual Depreciation	$ 6,109

Holding period of 10 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.	7.78 %
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.	21.63 %
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.	5.73 %
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.	9.14 %
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.	10.94

Financing
Down Payment		$ 42,000
Loan		$ 168,000
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		1.42

Loan Financing of: Purchase price ($ 210,000)
Type	Amortized
Loan Amount	$ 168,000
Down payment (20%)	$ 42,000
Amortization	30 years
Interest Rate	3.00 %
Monthly Payment	$ 708.29

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
Operational Analysis
Gross Scheduled Income	0	19,200	19,584	19,976	20,375	20,783	21,198	21,622	22,055	22,496	22,946
Vacancy Loss	0	960	979	999	1,019	1,039	1,060	1,081	1,103	1,125	1,147
Gross Operating Income	0	18,240	18,605	18,977	19,356	19,744	20,138	20,541	20,952	21,371	21,798
Expenses	0	6,199	6,323	6,449	6,578	6,710	6,844	6,981	7,121	7,263	7,408
Net Operating Income	0	12,041	12,282	12,527	12,778	13,034	13,294	13,560	13,831	14,108	14,390
Loan Payment	0	8,500	8,500	8,500	8,500	8,500	8,500	8,500	8,500	8,500	8,500
Payment Interest Part	0	4,992	4,885	4,775	4,662	4,545	4,425	4,301	4,174	4,042	3,906
Payment Principal Part	0	3,508	3,614	3,724	3,837	3,954	4,074	4,198	4,326	4,458	4,593
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-45,500	3,541	3,782	4,028	4,278	4,534	4,795	5,061	5,332	5,608	5,891
Depreciation	0	6,109	6,109	6,109	6,109	6,109	6,109	6,109	6,109	6,109	6,109
Taxes	0	235	322	411	502	595	690	787	887	989	1,094
Cash Flow After Taxes	-45,500	3,306	3,460	3,617	3,777	3,939	4,105	4,273	4,445	4,619	4,797

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 10 years. Below is the resale price calculated using different methods.

Appreciation (3.00%)	$ 282,222
Cap Rate (5.73%) & NOI	$ 251,136
Gross Rent Multiplier	$ 251,027

Sale Proceeds

Projected Selling Price	$ 282,222
Costs of Sale (6.00%)	$ 16,933
1. Loan Balance Payoff	$ 127,713
Net Sale Proceeds Before Tax	$ 137,575

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	$ 137,575
Investor Cash Outlay	$ 45,500
Net Assets	$ 92,075
Average Yield
Annual Net Assets	$ 9,208
Average Cash Flow (After Taxes)	$ 3,554
Average Annual Gain (After Taxes)	$ 12,762
Average Annual Yield (After Taxes)	6.08 %

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: 405 S Husband St, Stillwater RENTAL

Property Report :

405 S Husband St, Stillwater, OK 74074

Executive Summary