52 E. 200 N. Salt Lake City - Tri-Plex: 52 E 200 N, Salt Lake City UT 84103 | Zilculator: Real Estate Analysis & Marketing

52 E 200 N, Salt Lake City, UT 84103

Multifamily: 4 bedrooms , 3 bathrooms

Year built: 1902, Size: 2880 SF

Investment strategy: Rental Property

Tri-plex, one 2 bedroom unit, 2 - 1 bedroom units

Purchase Price$ 700,000

Rent$ 4,560/mo

Monthly Cash Flow$ 135

Cash on Cash Return0.86 %

Financial Analysis

Cash on Cash Return	0.86 %
Internal Rate of Return (IRR)	14.04 %
Capitalization Rate	6.91 %
Gross Rent Multiplier (GRM)	12.79
Debt-coverage Ratio (DCR)	1.03
Operating Expense Ratio (OER)	10.67 %

Financial Breakdown

Purchase Price	$ 700,000
Purchase Costs	$ 14,000
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).	$ 714,000
Financing	$ 525,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 189,000
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.	$ 175,000
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.	$ 14,000

Operating Analysis

Rent	$ 4,560/mo
Gross Operating Income (GOI)	$ 54,173
Total Expenses	$ 5,779
Net Operating Income (NOI)	$ 48,394
Annual Debt Service	$ 46,777
Cash Flow Before Taxes (CFBT)	$ 1,617
Income Tax Liability	$ -3,617
Cash Flow After Taxes (CFAT)	$ 5,234

52 E 200 N Salt Lake City, UT 84103

Multifamily

Bldg type
2,880

SqFt
4

Beds
3

Baths

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.	$ 54,720
Total Gross Income	$ 54,720
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.	$ 547
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.	$ 54,173	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	$ 1,000	1.85 %
Repairs	$ 542	1.00 %
Property tax	$ 4,237	7.82 %
Total Expenses	$ 5,779	10.67 %
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.	$ 48,394	89.33 %

Cash Flow (Year 1)

Net Operating Income	$ 48,394	89.33 %
Annual Debt Service	$ 46,777	86.35 %
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.	$ 1,617	2.98 %
Income Tax Liability	$ -3,617	-6.68 %
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.	$ 5,234	9.66 %

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).	10.67 %
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.	97.02 %

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.	$ 1,264,896
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.	14.04 %
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	7.69
Annual Depreciation	$ 20,364

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.	0.86 %
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.	26.78 %
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.	6.91 %
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.	7.82 %
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.	12.79

Financing
Down Payment		$ 175,000
Conventional		$ 525,000
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.		75.00 %
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).		75.00 %
Debt Coverage Ratio		1.03

Conventional Financing of: Purchase price ($ 700,000)
Type	Amortized
Loan Amount	$ 525,000
Down payment (25%)	$ 175,000
Amortization	30 years
Interest Rate	8.13 %
Monthly Payment	$ 3,898.11

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	54,720	56,362	58,052	59,794	61,588	63,435	65,339	67,299	69,318	71,397	73,539	75,745	78,018	80,358	82,769	85,252	87,810	90,444	93,157	95,952	98,830	101,795	104,849	107,995	111,235	114,572	118,009	121,549	125,195	128,951
Vacancy Loss	0	547	564	581	598	616	634	653	673	693	714	735	757	780	804	828	853	878	904	932	960	988	1,018	1,049	1,080	1,112	1,146	1,180	1,216	1,252	1,290
Gross Operating Income	0	54,173	55,798	57,472	59,196	60,972	62,801	64,685	66,626	68,624	70,683	72,804	74,988	77,237	79,555	81,941	84,399	86,931	89,539	92,226	94,992	97,842	100,777	103,801	106,915	110,122	113,426	116,829	120,333	123,943	127,662
Expenses	0	5,779	5,894	6,012	6,132	6,255	6,380	6,508	6,638	6,771	6,906	7,044	7,185	7,329	7,475	7,625	7,777	7,933	8,092	8,253	8,419	8,587	8,759	8,934	9,112	9,295	9,481	9,670	9,864	10,061	10,262
Net Operating Income	0	48,394	49,904	51,460	53,064	54,717	56,421	58,177	59,988	61,854	63,777	65,759	67,803	69,909	72,079	74,316	76,622	78,998	81,448	83,972	86,574	89,255	92,019	94,867	97,802	100,827	103,945	107,158	110,470	113,883	117,400
Loan Payment	0	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777	46,777
Payment Interest Part	0	42,499	42,138	41,747	41,323	40,863	40,364	39,823	39,236	38,600	37,911	37,163	36,352	35,473	34,519	33,485	32,364	31,148	29,830	28,401	26,851	25,170	23,348	21,372	19,229	16,905	14,386	11,654	8,691	5,479	1,995
Payment Principal Part	0	4,278	4,639	5,030	5,454	5,914	6,413	6,954	7,541	8,177	8,867	9,614	10,425	11,305	12,258	13,292	14,413	15,629	16,947	18,376	19,926	21,607	23,430	25,406	27,549	29,872	32,392	35,124	38,086	41,299	44,782
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	-189,000	1,617	3,126	4,682	6,286	7,940	9,644	11,400	13,210	15,076	17,000	18,982	21,025	23,131	25,302	27,539	29,845	32,221	34,670	37,195	39,797	42,478	45,241	48,090	51,025	54,050	57,168	60,381	63,693	67,105	70,622
Depreciation	0	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364	20,364
Taxes	0	-3,617	-3,150	-2,663	-2,156	-1,627	-1,077	-502	97	722	1,376	2,058	2,772	3,518	4,299	5,117	5,973	6,872	7,813	8,802	9,840	10,930	12,077	13,283	14,552	15,890	17,299	18,785	20,354	22,010	23,760
Cash Flow After Taxes	-189,000	5,234	6,276	7,345	8,442	9,567	10,720	11,902	13,114	14,354	15,624	16,924	18,254	19,613	21,003	22,422	23,871	25,350	26,857	28,393	29,957	31,548	33,165	34,807	36,473	38,161	39,869	41,596	43,339	45,095	46,862

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 (7.00%)	$ 5,328,579
Cap Rate (6.91%) & NOI	$ 1,698,982
Gross Rent Multiplier	$ 1,649,287

Sale Proceeds

Projected Selling Price	$ 5,328,579
Costs of Sale (6.00%)	$ 319,715
Net Sale Proceeds Before Tax	$ 5,008,864

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	$ 5,008,864
Investor Cash Outlay	$ 189,000
Net Assets	$ 4,819,864
Average Yield
Annual Net Assets	$ 160,662
Average Cash Flow (After Taxes)	$ 22,642
Average Annual Gain (After Taxes)	$ 183,305
Average Annual Yield (After Taxes)	26.19 %

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: 52 E. 200 N. Salt Lake City - Tri-Plex RENTAL

Property Report :

52 E. 200 N. Salt Lake City - Tri-Plex

52 E 200 N, Salt Lake City, UT 84103

Executive Summary

52 E 200 N, Salt Lake City, UT 84103

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

Multifamily

Bldg type

2,880

SqFt

4

Beds

3

Baths

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)

Financial Analysis

Financial Measures

Net Present Value (NPV)

Net Present Value (NPV)

Internal Rate of Return (IRR)

Internal Rate of Return (IRR)

Profitability Index

Profitability Index

Investment Return Ratios

Cash on Cash Return

Cash on Cash Return

Return on Investment

Return on Investment

Capitalization Rate

Capitalization Rate

Gross Rental Yield

Gross Rental Yield

Gross Rent Multiplier (GRM)

Gross Rent Multiplier (GRM)

Financing Overview

Loan to Value Ratio

Loan to Value Ratio

Loan to Cost Ratio

Loan to Cost Ratio

Long-term Cash Flow Forecast

Resale Analysis

Resale Price Evaluation Methods

Sale Proceeds

Net Assets and Yield

Photos