440 QUEEN STREET: 440 N Queen St, Lancaster PA 17603

440 N Queen St, Lancaster, PA 17603

Multifamily: 6 bedrooms , 2 bathrooms

Year built: 1775, Size: 2176 SF

Investment strategy: Rental Property

2 unit investment property in the heart of downtown Lancaster. OFF-STREET parking for 4 cars and both units have separate GAS HEAT and Electric utilities. Unit 1 is a first floor 2 BEDROOM apartment with laundry on site and includes a refrigerator as well as washer and dryer. Unit 2 is a 4 BEDROOM apartment with new balcony and new carpet in the hall and stairwell. This apartment also has a dishwasher. Both apartments have some newer windows, flooring, new rubber roof and the whole building was recently painted from top to bottom!

Purchase Price$ 229,900

Rent$ 3,300/mo

Monthly Cash Flow$ 923

Cash on Cash Return18.53 %

Financial Analysis

Cash on Cash Return	18.53 %
Internal Rate of Return (IRR)	22.31 %
Capitalization Rate	8.61 %
Gross Rent Multiplier (GRM)	5.81
Debt-coverage Ratio (DCR)	2.27
Operating Expense Ratio (OER)	50.00 %

Financial Breakdown

Purchase Price	$ 229,900
Purchase Costs	$ 2,300
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).	$ 232,200
Financing	$ 172,425
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 59,775
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.	$ 57,475
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.	$ 2,300

Operating Analysis

Rent	$ 3,300/mo
Gross Operating Income (GOI)	$ 39,600
Total Expenses	$ 19,800
Net Operating Income (NOI)	$ 19,800
Annual Debt Service	$ 8,723
Cash Flow Before Taxes (CFBT)	$ 11,077
Income Tax Liability	$ 1,997
Cash Flow After Taxes (CFAT)	$ 9,079

Purchase Price	$ 229,900
Address	440 N Queen St , Lancaster, 17603, PA
Year Built	1775
Type	Multifamily
Number of Units	2
Size	2176 SF
Bedrooms	6
Bathrooms	2

Unit	Rent
2 BEDROOM	$ 1,500/mo
4 BEDROOM	$ 1,800/mo
	$ 0/mo

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.	$ 39,600
	$ 0
Total Gross Income	$ 39,600
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.	$ 0
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.	$ 39,600	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).
50% rule	$ 19,800	50.00 %
Total Expenses	$ 19,800	50.00 %
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.	$ 19,800	50.00 %

Cash Flow (Year 1)

Net Operating Income	$ 19,800	50.00 %
Annual Debt Service	$ 8,723	22.03 %
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.	$ 11,077	27.97 %
Income Tax Liability	$ 1,997	5.04 %
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.	$ 9,079	22.93 %

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).	50.00 %
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.	72.03 %

Year	0	1	2	3	4	5	6	7	8	9	10
Operational Analysis
Gross Scheduled Income	0	39,600	40,392	41,200	42,024	42,864	43,722	44,596	45,488	46,398	47,326
Vacancy Loss	0	0	0	0	0	0	0	0	0	0	0
Gross Operating Income	0	39,600	40,392	41,200	42,024	42,864	43,722	44,596	45,488	46,398	47,326
Expenses	0	19,800	20,196	20,600	21,012	21,432	21,861	22,298	22,744	23,199	23,663
Net Operating Income	0	19,800	20,196	20,600	21,012	21,432	21,861	22,298	22,744	23,199	23,663
Loan Payment	0	8,723	8,723	8,723	8,723	8,723	8,723	8,723	8,723	8,723	8,723
Payment Interest Part	0	5,124	5,014	4,901	4,785	4,665	4,542	4,415	4,283	4,148	4,009
Payment Principal Part	0	3,600	3,709	3,822	3,938	4,058	4,182	4,309	4,440	4,575	4,714
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-59,775	11,077	11,473	11,877	12,289	12,709	13,137	13,575	14,021	14,475	14,939
Depreciation	0	6,688	6,688	6,688	6,688	6,688	6,688	6,688	6,688	6,688	6,688
Taxes	0	1,997	2,123	2,253	2,385	2,520	2,658	2,799	2,943	3,091	3,241
Cash Flow After Taxes	-59,775	9,079	9,349	9,624	9,904	10,189	10,480	10,776	11,077	11,385	11,698

Note: All amounts in the table above are in $

Property Report :

440 QUEEN STREET

440 N Queen St, Lancaster, PA 17603

Executive Summary

440 N Queen St, Lancaster, PA 17603

Financial Analysis

Financial Breakdown

Total Capital Needed

Total Capital Needed

Cash out of Pocket

Cash out of Pocket

Cash at Closing

Cash at Closing

Cash During Rehab

Cash During Rehab

Operating Analysis

Property Description

Operating Analysis

Annual Property Operating Data

Gross Scheduled Income (GSI)

Gross Scheduled Income (GSI)

Vacancy and Credit Loss

Vacancy and Credit Loss

Gross Operating Income (GOI)

Gross Operating Income (GOI)

Operating Expenses

Operating Expenses

Net Operating Income (NOI)

Net Operating Income (NOI)

Cash Flow (Year 1)

Cash Flow

Cash Flow

Cash Flow

Cash Flow

Operating Ratios

Operating Expense Ratio

Operating Expense Ratio

Break-Even Ratio (BER)

Break-Even Ratio (BER)

Long-term Cash Flow Forecast

Property Report: 440 QUEEN STREET RENTAL

Property Report :

440 QUEEN STREET

440 N Queen St, Lancaster, PA 17603

Executive Summary

440 N Queen St, Lancaster, PA 17603

Financial Analysis

Financial Breakdown

Total Capital Needed

Total Capital Needed

Cash out of Pocket

Cash out of Pocket

Cash at Closing

Cash at Closing

Cash During Rehab

Cash During Rehab

Operating Analysis

Property Description

Operating Analysis

Annual Property Operating Data

Gross Scheduled Income (GSI)

Gross Scheduled Income (GSI)

Vacancy and Credit Loss

Vacancy and Credit Loss

Gross Operating Income (GOI)

Gross Operating Income (GOI)

Operating Expenses

Operating Expenses

Net Operating Income (NOI)

Net Operating Income (NOI)

Cash Flow (Year 1)

Cash Flow

Cash Flow

Cash Flow

Cash Flow

Operating Ratios

Operating Expense Ratio

Operating Expense Ratio

Break-Even Ratio (BER)

Break-Even Ratio (BER)

Long-term Cash Flow Forecast