4633 S Quail Vista Lane Ln Unit G, Salt Lake City UT 84117

4633 S Quail Vista Lane Ln Unit G, Salt Lake City, UT 84117

Condominium: 2 bedrooms , 2 bathrooms

Year built: 1978, Size: 860 SF

Investment strategy: Rental Property

Purchase Price$ 294,900

Rent$ 1,800/mo

Monthly Cash Flow$ 225

Cash on Cash Return2.14 %

Financial Analysis

Cash on Cash Return	2.14 %
Internal Rate of Return (IRR)	8.69 %
Capitalization Rate	5.47 %
Gross Rent Multiplier (GRM)	13.65
Debt-coverage Ratio (DCR)	1.20
Operating Expense Ratio (OER)	25.36 %

Financial Breakdown

Purchase Price	$ 294,900
Purchase Costs	$ 8,000
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).	$ 302,900
Financing	$ 176,940
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 125,960
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.	$ 117,960
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.	$ 8,000

Operating Analysis

Rent	$ 1,800/mo
Gross Operating Income (GOI)	$ 21,600
Total Expenses	$ 5,478
Net Operating Income (NOI)	$ 16,122
Annual Debt Service	$ 13,421
Cash Flow Before Taxes (CFBT)	$ 2,701
Income Tax Liability	$ -975
Cash Flow After Taxes (CFAT)	$ 3,676

Fall in love with the tree-lined lane that leads to the coveted Quailbrook East Community. Beautifully remodeled with new paint, carpet, base, and LED lighting. Large bedrooms and 2 bathrooms. Conveniently located on the ground floor, with sliding doors out to your private patio. Private laundry with extra storage space. 2 assigned parking spaces. Quailbrook boasts multiple ponds, 2 swimming pools, sauna, exercise room, tennis, basketball, and clubhouse and beautiful towering trees. Centrally located in the highly desirable Holladay/Millcreek area minutes away from the freeway, UofU, downtown and ski areas. Easy to show, and shows beautifully. owner/agent

Purchase Price	$ 294,900
Address	4633 S Quail Vista Lane Ln Unit G , Salt Lake City, 84117, UT
MLS^® #	1862574
Listing Agent	Anne Seal
Listing Broker	KW Utah Realtors Keller Williams
Year Built	1978
Type	Condominium
Size	860 SF
Bedrooms	2
Bathrooms	2

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.	$ 21,600
Total Gross Income	$ 21,600
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.	$ 21,600	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).
Insurance	$ 700	3.24 %
Property tax	$ 1,598	7.40 %
Association fees	$ 3,180	14.72 %
Total Expenses	$ 5,478	25.36 %
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.	$ 16,122	74.64 %

Cash Flow (Year 1)

Net Operating Income	$ 16,122	74.64 %
Annual Debt Service	$ 13,421	62.13 %
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.	$ 2,701	12.51 %
Income Tax Liability	$ -975	-4.51 %
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.	$ 3,676	17.02 %

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).	25.36 %
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.	87.49 %

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.	$ 45,857
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.	8.69 %
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	1.36
Annual Depreciation	$ 8,579

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.	2.14 %
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.	9.17 %
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.	5.47 %
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.	7.32 %
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.	13.65

Financing
Down Payment		$ 117,960
Loan		$ 176,940
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.		60.00 %
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).		60.00 %
Debt Coverage Ratio		1.20

Loan Financing of: Purchase price ($ 294,900)
Type	Amortized
Loan Amount	$ 176,940
Down payment (40%)	$ 117,960
Amortization	30 years
Interest Rate	6.50 %
Monthly Payment	$ 1,118.38

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	21,600	22,032	22,473	22,922	23,381	23,848	24,325	24,812	25,308	25,814
Vacancy Loss	0	0	0	0	0	0	0	0	0	0	0
Gross Operating Income	0	21,600	22,032	22,473	22,922	23,381	23,848	24,325	24,812	25,308	25,814
Expenses	0	5,478	5,588	5,699	5,813	5,930	6,048	6,169	6,293	6,418	6,547
Net Operating Income	0	16,122	16,444	16,773	17,109	17,451	17,800	18,156	18,519	18,889	19,267
Loan Payment	0	13,421	13,421	13,421	13,421	13,421	13,421	13,421	13,421	13,421	13,421
Payment Interest Part	0	11,443	11,310	11,169	11,018	10,857	10,686	10,503	10,307	10,099	9,876
Payment Principal Part	0	1,978	2,110	2,251	2,402	2,563	2,735	2,918	3,113	3,322	3,544
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-125,960	2,701	3,024	3,353	3,688	4,030	4,379	4,735	5,099	5,469	5,847
Depreciation	0	8,579	8,579	8,579	8,579	8,579	8,579	8,579	8,579	8,579	8,579
Taxes	0	-975	-861	-744	-622	-496	-366	-231	-92	53	203
Cash Flow After Taxes	-125,960	3,676	3,885	4,096	4,310	4,527	4,746	4,967	5,190	5,416	5,644

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%)	$ 396,321
Cap Rate (5.47%) & NOI	$ 352,235
Gross Rent Multiplier	$ 352,361

Sale Proceeds

Projected Selling Price	$ 396,321
Costs of Sale (6.00%)	$ 23,779
1. Loan Balance Payoff	$ 150,003
Net Sale Proceeds Before Tax	$ 222,539

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	$ 222,539
Investor Cash Outlay	$ 125,960
Net Assets	$ 96,579
Average Yield
Annual Net Assets	$ 9,658
Average Cash Flow (After Taxes)	$ 4,081
Average Annual Gain (After Taxes)	$ 13,739
Average Annual Yield (After Taxes)	4.66 %

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: 4633 S Quail Vista Lane Ln Unit G, Salt Lake City RENTAL

Property Report :

4633 S Quail Vista Lane Ln Unit G, Salt Lake City, UT 84117

Executive Summary