Property Report :

Waco Assisted Living

5409 Edinburgh Dr, Waco, TX 76710

Real Estate Analysis

Created on: Apr 16, 2025

Author: Ray Hogan

5409 Edinburgh Dr, Waco, TX 76710

Singlefamily: 7 bedrooms , 4 bathrooms

Year built: 1967, Size: 4319 SF

Investment strategy: Rental Property

This is a subject to deal. The home is a 7 bed, 4 bath, 4319 sq ft home.
Best use is to convert to assisted living facility.

Purchase Price$ 500,000

Rent$ 52,000/mo

Monthly Cash Flow$ 17,220

Cash on Cash Return684.00 %

Financial Analysis

Cash on Cash Return	684.00 %
Internal Rate of Return (IRR)	525.39 %
Capitalization Rate	26.00 %
Gross Rent Multiplier (GRM)	1.92
Debt-coverage Ratio (DCR)	2.96
Operating Expense Ratio (OER)	50.00 %
After Repair Value	$ 1,200,000
Profit/Equity From Rehab	$ 359,290

Financial Breakdown

Purchase Price	$ 500,000
Purchase Costs	$ 30,210
Repair/Construction Costs	$ 310,500
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 840,710
Financing	$ 810,500
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 30,210
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.	$ 16,210
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	$ 52,000/mo
Gross Operating Income (GOI)	$ 624,000
Total Expenses	$ 312,000
Net Operating Income (NOI)	$ 312,000
Annual Debt Service	$ 105,365
Cash Flow Before Taxes (CFBT)	$ 206,635
Income Tax Liability	$ 48,023
Cash Flow After Taxes (CFAT)	$ 158,613

5409 Edinburgh Dr Waco, TX 76710

$ 1,200,000

Property ARV
Singlefamily

Bldg type
4,319

SqFt
$ 278

per SqFt
7

Beds
4

Baths

5409 Edinburgh Dr Waco, TX 76710

$ 52,000

Rent
Singlefamily

Bldg type
4,319

SqFt
7

Beds
4

Baths

Your rent may be too high.

Average

$ 2,101

Median

$ 2,150

25th %

$ 1,914

75th %

$ 2,289

You can edit, sort, drag and reorder suggested comps below. Select the comps you want to include in the report. You can also add comps manually.

Property address	Similarity	Distance	Beds	Baths	SqFt	Date Listed	Bldg type	Rent
5215 Sanger Ave	71%	3.3mi		2	0	11/3/2022	Single Family	$ 1,500
5817 Edmond Ave	64%	2.6mi			0	12/16/2022	Apartment	$ 812
5101 Sanger Ave	63%	3.4mi			0	4/17/2023	Apartment	$ 1,159
4801 Sanger Ave	62%	3.5mi			0	12/15/2022	Apartment	$ 719
344 Richland Dr	62%	3.8mi			0	12/29/2022	Apartment	$ 920
2736 Lake Shore Dr	61%	4.1mi			0	12/29/2022	Apartment	$ 1,078
5501 Lake Highlands Dr	61%	1.5mi	4	3	2,592	11/1/2022	Single Family	$ 2,300
3700 Greenleaf Dr	61%	2.0mi	3	3	2,610	2/3/2023	Single Family	$ 2,295
8014 W Hwy, 84	59%	5.5mi			0	12/29/2022	Apartment	$ 755
3016 Alexander Ave	58%	3.0mi	3	2	0	2/17/2023	Single Family	$ 1,795

Comps selected: 0

Breakdown by Scope of Work

Foundation Foundation Includes excavation, foundation, structural concrete. Foundation Includes excavation, foundation, structural concrete.	$ 0	Garage Garage Includes garage doors and repairs. Garage Includes garage doors and repairs.	$ 2,000	Tiling Tiling Includes tiles and backsplashes in kitchen, bathroom and fireplace tiling. Tiling Includes tiles and backsplashes in kitchen, bathroom and fireplace tiling.	$ 2,500	Permits & Fees Permits & Fees Includes building permits, architect and engineering fees. Permits & Fees Includes building permits, architect and engineering fees.	$ 7,500
Concrete Concrete Includes conrete and flatwork such as asphalt and pavers. Concrete Includes conrete and flatwork such as asphalt and pavers.	$ 25,000	Landscaping Landscaping Includes landscaping, fencing, ext. structures, pools. Landscaping Includes landscaping, fencing, ext. structures, pools.	$ 5,000	Doors & Trim Doors & Trim Includes interior and closet doors, crown molding and trims. Doors & Trim Includes interior and closet doors, crown molding and trims.	$ 6,000	Miscellaneous Miscellaneous Includes fuel/gas expense, final cleaning. Miscellaneous Includes fuel/gas expense, final cleaning.	$ 20,000
Masonry Masonry Includes natural stone, bricks, chimney repairs. Masonry Includes natural stone, bricks, chimney repairs.	$ 2,500	Demolition Demolition Includes room and building demolition, asbestos and mold abatement. Demolition Includes room and building demolition, asbestos and mold abatement.	$ 6,000	Flooring Flooring Includes carpeting, sheet vinyl, vinyl tiles, laminate, hardwood flooring and refinishing Flooring Includes carpeting, sheet vinyl, vinyl tiles, laminate, hardwood flooring and refinishing	$ 20,000	Pool Pool Pool	$ 2,500
Siding & Paint Siding & Paint Includes vinyl, fiber cement, wood siding or exterior painting. Siding & Paint Includes vinyl, fiber cement, wood siding or exterior painting.	$ 7,000	Framing & Drywall Framing & Drywall Includes framing, insulation, walls/ceiling drywall and texturing. Framing & Drywall Includes framing, insulation, walls/ceiling drywall and texturing.	$ 25,000	Cabinets Cabinets Includes countertops, cabinets in kitchen and bathrooms. Cabinets Includes countertops, cabinets in kitchen and bathrooms.	$ 20,000	Architecture & Design Architecture & Design Architecture & Design	$ 10,000
Decks & Porches Decks & Porches Includes decking, patios, porches and railing. Decks & Porches Includes decking, patios, porches and railing.	$ 3,000	Electrical Electrical Includes various electrical repairs, light fixtures, smoke detectors. Electrical Includes various electrical repairs, light fixtures, smoke detectors.	$ 15,000	Painting Painting Includes interior painting of walls, doors & frames. Painting Includes interior painting of walls, doors & frames.	$ 7,000	Holding Costs for 12 mo Holding Costs for 12 mo Holding Costs for 12 mo	$ 60,000
Roofing Roofing Includes roof materials, gutters, soffits, fascias repairs or replacement. Roofing Includes roof materials, gutters, soffits, fascias repairs or replacement.	N/A	Plumbing Plumbing Includes kitchen and bathroom faucets, bathtubs, shower stalls and toilets. Plumbing Includes kitchen and bathroom faucets, bathtubs, shower stalls and toilets.	$ 3,500	Appliances Appliances Includes refrigerators, ranges, dishwashers, microwaves Appliances Includes refrigerators, ranges, dishwashers, microwaves	$ 10,000	Hot Tub Hot Tub Hot Tub	$ 10,000
Doors & Windows Doors & Windows Includes exterior doors, windows, screens, skylights. Doors & Windows Includes exterior doors, windows, screens, skylights.	$ 25,000	HVAC HVAC Includes replacement of AC units, air-grilles, heaters. HVAC Includes replacement of AC units, air-grilles, heaters.	$ 12,000	Dumpster Dumpster Includes dumpster rental, storage container, etc. Dumpster Includes dumpster rental, storage container, etc.	$ 4,000
Foundation Foundation Includes excavation, foundation, structural concrete. Foundation Includes excavation, foundation, structural concrete.	$ 0	Demolition Demolition Includes room and building demolition, asbestos and mold abatement. Demolition Includes room and building demolition, asbestos and mold abatement.	$ 6,000	Painting Painting Includes interior painting of walls, doors & frames. Painting Includes interior painting of walls, doors & frames.	$ 7,000
Concrete Concrete Includes conrete and flatwork such as asphalt and pavers. Concrete Includes conrete and flatwork such as asphalt and pavers.	$ 25,000	Framing & Drywall Framing & Drywall Includes framing, insulation, walls/ceiling drywall and texturing. Framing & Drywall Includes framing, insulation, walls/ceiling drywall and texturing.	$ 25,000	Appliances Appliances Includes refrigerators, ranges, dishwashers, microwaves Appliances Includes refrigerators, ranges, dishwashers, microwaves	$ 10,000
Masonry Masonry Includes natural stone, bricks, chimney repairs. Masonry Includes natural stone, bricks, chimney repairs.	$ 2,500	Electrical Electrical Includes various electrical repairs, light fixtures, smoke detectors. Electrical Includes various electrical repairs, light fixtures, smoke detectors.	$ 15,000	Dumpster Dumpster Includes dumpster rental, storage container, etc. Dumpster Includes dumpster rental, storage container, etc.	$ 4,000
Siding & Paint Siding & Paint Includes vinyl, fiber cement, wood siding or exterior painting. Siding & Paint Includes vinyl, fiber cement, wood siding or exterior painting.	$ 7,000	Plumbing Plumbing Includes kitchen and bathroom faucets, bathtubs, shower stalls and toilets. Plumbing Includes kitchen and bathroom faucets, bathtubs, shower stalls and toilets.	$ 3,500	Permits & Fees Permits & Fees Includes building permits, architect and engineering fees. Permits & Fees Includes building permits, architect and engineering fees.	$ 7,500
Decks & Porches Decks & Porches Includes decking, patios, porches and railing. Decks & Porches Includes decking, patios, porches and railing.	$ 3,000	HVAC HVAC Includes replacement of AC units, air-grilles, heaters. HVAC Includes replacement of AC units, air-grilles, heaters.	$ 12,000	Miscellaneous Miscellaneous Includes fuel/gas expense, final cleaning. Miscellaneous Includes fuel/gas expense, final cleaning.	$ 20,000
Roofing Roofing Includes roof materials, gutters, soffits, fascias repairs or replacement. Roofing Includes roof materials, gutters, soffits, fascias repairs or replacement.	N/A	Tiling Tiling Includes tiles and backsplashes in kitchen, bathroom and fireplace tiling. Tiling Includes tiles and backsplashes in kitchen, bathroom and fireplace tiling.	$ 2,500	Pool Pool Pool	$ 2,500
Doors & Windows Doors & Windows Includes exterior doors, windows, screens, skylights. Doors & Windows Includes exterior doors, windows, screens, skylights.	$ 25,000	Doors & Trim Doors & Trim Includes interior and closet doors, crown molding and trims. Doors & Trim Includes interior and closet doors, crown molding and trims.	$ 6,000	Architecture & Design Architecture & Design Architecture & Design	$ 10,000
Garage Garage Includes garage doors and repairs. Garage Includes garage doors and repairs.	$ 2,000	Flooring Flooring Includes carpeting, sheet vinyl, vinyl tiles, laminate, hardwood flooring and refinishing Flooring Includes carpeting, sheet vinyl, vinyl tiles, laminate, hardwood flooring and refinishing	$ 20,000	Holding Costs for 12 mo Holding Costs for 12 mo Holding Costs for 12 mo	$ 60,000
Landscaping Landscaping Includes landscaping, fencing, ext. structures, pools. Landscaping Includes landscaping, fencing, ext. structures, pools.	$ 5,000	Cabinets Cabinets Includes countertops, cabinets in kitchen and bathrooms. Cabinets Includes countertops, cabinets in kitchen and bathrooms.	$ 20,000	Hot Tub Hot Tub Hot Tub	$ 10,000
Foundation Foundation Includes excavation, foundation, structural concrete. Foundation Includes excavation, foundation, structural concrete.	$ 0	Tiling Tiling Includes tiles and backsplashes in kitchen, bathroom and fireplace tiling. Tiling Includes tiles and backsplashes in kitchen, bathroom and fireplace tiling.	$ 2,500
Concrete Concrete Includes conrete and flatwork such as asphalt and pavers. Concrete Includes conrete and flatwork such as asphalt and pavers.	$ 25,000	Doors & Trim Doors & Trim Includes interior and closet doors, crown molding and trims. Doors & Trim Includes interior and closet doors, crown molding and trims.	$ 6,000
Masonry Masonry Includes natural stone, bricks, chimney repairs. Masonry Includes natural stone, bricks, chimney repairs.	$ 2,500	Flooring Flooring Includes carpeting, sheet vinyl, vinyl tiles, laminate, hardwood flooring and refinishing Flooring Includes carpeting, sheet vinyl, vinyl tiles, laminate, hardwood flooring and refinishing	$ 20,000
Siding & Paint Siding & Paint Includes vinyl, fiber cement, wood siding or exterior painting. Siding & Paint Includes vinyl, fiber cement, wood siding or exterior painting.	$ 7,000	Cabinets Cabinets Includes countertops, cabinets in kitchen and bathrooms. Cabinets Includes countertops, cabinets in kitchen and bathrooms.	$ 20,000
Decks & Porches Decks & Porches Includes decking, patios, porches and railing. Decks & Porches Includes decking, patios, porches and railing.	$ 3,000	Painting Painting Includes interior painting of walls, doors & frames. Painting Includes interior painting of walls, doors & frames.	$ 7,000
Roofing Roofing Includes roof materials, gutters, soffits, fascias repairs or replacement. Roofing Includes roof materials, gutters, soffits, fascias repairs or replacement.	N/A	Appliances Appliances Includes refrigerators, ranges, dishwashers, microwaves Appliances Includes refrigerators, ranges, dishwashers, microwaves	$ 10,000
Doors & Windows Doors & Windows Includes exterior doors, windows, screens, skylights. Doors & Windows Includes exterior doors, windows, screens, skylights.	$ 25,000	Dumpster Dumpster Includes dumpster rental, storage container, etc. Dumpster Includes dumpster rental, storage container, etc.	$ 4,000
Garage Garage Includes garage doors and repairs. Garage Includes garage doors and repairs.	$ 2,000	Permits & Fees Permits & Fees Includes building permits, architect and engineering fees. Permits & Fees Includes building permits, architect and engineering fees.	$ 7,500
Landscaping Landscaping Includes landscaping, fencing, ext. structures, pools. Landscaping Includes landscaping, fencing, ext. structures, pools.	$ 5,000	Miscellaneous Miscellaneous Includes fuel/gas expense, final cleaning. Miscellaneous Includes fuel/gas expense, final cleaning.	$ 20,000
Demolition Demolition Includes room and building demolition, asbestos and mold abatement. Demolition Includes room and building demolition, asbestos and mold abatement.	$ 6,000	Pool Pool Pool	$ 2,500
Framing & Drywall Framing & Drywall Includes framing, insulation, walls/ceiling drywall and texturing. Framing & Drywall Includes framing, insulation, walls/ceiling drywall and texturing.	$ 25,000	Architecture & Design Architecture & Design Architecture & Design	$ 10,000
Electrical Electrical Includes various electrical repairs, light fixtures, smoke detectors. Electrical Includes various electrical repairs, light fixtures, smoke detectors.	$ 15,000	Holding Costs for 12 mo Holding Costs for 12 mo Holding Costs for 12 mo	$ 60,000
Plumbing Plumbing Includes kitchen and bathroom faucets, bathtubs, shower stalls and toilets. Plumbing Includes kitchen and bathroom faucets, bathtubs, shower stalls and toilets.	$ 3,500	Hot Tub Hot Tub Hot Tub	$ 10,000
HVAC HVAC Includes replacement of AC units, air-grilles, heaters. HVAC Includes replacement of AC units, air-grilles, heaters.	$ 12,000
Foundation Foundation Includes excavation, foundation, structural concrete. Foundation Includes excavation, foundation, structural concrete.	$ 0
Concrete Concrete Includes conrete and flatwork such as asphalt and pavers. Concrete Includes conrete and flatwork such as asphalt and pavers.	$ 25,000
Masonry Masonry Includes natural stone, bricks, chimney repairs. Masonry Includes natural stone, bricks, chimney repairs.	$ 2,500
Siding & Paint Siding & Paint Includes vinyl, fiber cement, wood siding or exterior painting. Siding & Paint Includes vinyl, fiber cement, wood siding or exterior painting.	$ 7,000
Decks & Porches Decks & Porches Includes decking, patios, porches and railing. Decks & Porches Includes decking, patios, porches and railing.	$ 3,000
Roofing Roofing Includes roof materials, gutters, soffits, fascias repairs or replacement. Roofing Includes roof materials, gutters, soffits, fascias repairs or replacement.	N/A
Doors & Windows Doors & Windows Includes exterior doors, windows, screens, skylights. Doors & Windows Includes exterior doors, windows, screens, skylights.	$ 25,000
Garage Garage Includes garage doors and repairs. Garage Includes garage doors and repairs.	$ 2,000
Landscaping Landscaping Includes landscaping, fencing, ext. structures, pools. Landscaping Includes landscaping, fencing, ext. structures, pools.	$ 5,000
Demolition Demolition Includes room and building demolition, asbestos and mold abatement. Demolition Includes room and building demolition, asbestos and mold abatement.	$ 6,000
Framing & Drywall Framing & Drywall Includes framing, insulation, walls/ceiling drywall and texturing. Framing & Drywall Includes framing, insulation, walls/ceiling drywall and texturing.	$ 25,000
Electrical Electrical Includes various electrical repairs, light fixtures, smoke detectors. Electrical Includes various electrical repairs, light fixtures, smoke detectors.	$ 15,000
Plumbing Plumbing Includes kitchen and bathroom faucets, bathtubs, shower stalls and toilets. Plumbing Includes kitchen and bathroom faucets, bathtubs, shower stalls and toilets.	$ 3,500
HVAC HVAC Includes replacement of AC units, air-grilles, heaters. HVAC Includes replacement of AC units, air-grilles, heaters.	$ 12,000
Tiling Tiling Includes tiles and backsplashes in kitchen, bathroom and fireplace tiling. Tiling Includes tiles and backsplashes in kitchen, bathroom and fireplace tiling.	$ 2,500
Doors & Trim Doors & Trim Includes interior and closet doors, crown molding and trims. Doors & Trim Includes interior and closet doors, crown molding and trims.	$ 6,000
Flooring Flooring Includes carpeting, sheet vinyl, vinyl tiles, laminate, hardwood flooring and refinishing Flooring Includes carpeting, sheet vinyl, vinyl tiles, laminate, hardwood flooring and refinishing	$ 20,000
Cabinets Cabinets Includes countertops, cabinets in kitchen and bathrooms. Cabinets Includes countertops, cabinets in kitchen and bathrooms.	$ 20,000
Painting Painting Includes interior painting of walls, doors & frames. Painting Includes interior painting of walls, doors & frames.	$ 7,000
Appliances Appliances Includes refrigerators, ranges, dishwashers, microwaves Appliances Includes refrigerators, ranges, dishwashers, microwaves	$ 10,000
Dumpster Dumpster Includes dumpster rental, storage container, etc. Dumpster Includes dumpster rental, storage container, etc.	$ 4,000
Permits & Fees Permits & Fees Includes building permits, architect and engineering fees. Permits & Fees Includes building permits, architect and engineering fees.	$ 7,500
Miscellaneous Miscellaneous Includes fuel/gas expense, final cleaning. Miscellaneous Includes fuel/gas expense, final cleaning.	$ 20,000
Pool Pool Pool	$ 2,500
Architecture & Design Architecture & Design Architecture & Design	$ 10,000
Holding Costs for 12 mo Holding Costs for 12 mo Holding Costs for 12 mo	$ 60,000
Hot Tub Hot Tub Hot Tub	$ 10,000
								Total Rehab Estimate	$ 310,500

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.	$ 624,000
Total Gross Income	$ 624,000
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.	$ 624,000	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	$ 312,000	50.00 %
Total Expenses	$ 312,000	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.	$ 312,000	50.00 %

Cash Flow (Year 1)

Net Operating Income	$ 312,000	50.00 %
Annual Debt Service	$ 105,365	16.89 %
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.	$ 206,635	33.11 %
Income Tax Liability	$ 48,023	7.70 %
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.	$ 158,613	25.42 %

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.	66.89 %

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.	$ 1,956,415
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.	525.39 %
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	65.76
Annual Depreciation	$ 14,545

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.	684.00 %
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.	733.65 %
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.	26.00 %
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.	124.80 %
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.	1.92

Financing		% of ARV
Down Payment	$ 0	0.00 %
Hard Money	$ 810,500	67.54 %
Conventional (Refinance)	$ 810,500	67.54 %
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.		162.10 %
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).		100.00 %
Debt Coverage Ratio		2.96

Hard Money Financing of: Purchase + Repairs ($ 810,500)
Type	Interest-Only
Loan Amount	$ 810,500
Down payment (0%)	$ 0
Loan term	2 years
Interest Rate	13.00 %
Monthly Payment	$ 8,780.42

Conventional (Refinance) Financing of: Refinance ($ 810,500)
Type	Amortized
Loan Amount	$ 810,500
Amortization	30 years
Interest Rate	8.00 %
Monthly Payment	$ 5,947.16

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	624,000	636,480	649,210	662,194	675,438	688,946	702,725	716,780	731,115	745,738
Vacancy Loss	0	0	0	0	0	0	0	0	0	0	0
Gross Operating Income	0	624,000	636,480	649,210	662,194	675,438	688,946	702,725	716,780	731,115	745,738
Expenses	0	312,000	318,240	324,605	331,097	337,719	344,473	351,363	358,390	365,558	372,869
Net Operating Income	0	312,000	318,240	324,605	331,097	337,719	344,473	351,363	358,390	365,558	372,869
1. Loan Payment	0	105,365	105,365	0	0	0	0	0	0	0	0
Payment Interest Part	0	105,365	105,365	0	0	0	0	0	0	0	0
Payment Principal Part	0	0	0	0	0	0	0	0	0	0	0
2. Loan Payment	0	0	0	71,366	71,366	71,366	71,366	71,366	71,366	71,366	71,366
Payment Interest Part	0	0	0	64,595	64,033	63,425	62,766	62,052	61,279	60,442	59,535
Payment Principal Part	0	0	0	6,771	7,333	7,941	8,600	9,314	10,087	10,924	11,831
Total Debt Service	0	105,365	105,365	71,366	71,366	71,366	71,366	71,366	71,366	71,366	71,366
Cash Flow
Repairs/Construction	310,500	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-30,210	206,635	203,770	253,239	259,731	266,353	273,107	279,997	287,024	294,192	301,503
Depreciation	0	14,545	14,545	14,545	14,545	14,545	14,545	14,545	14,545	14,545	14,545
Taxes	0	48,023	49,583	61,366	63,130	64,937	66,791	68,691	70,642	72,643	74,697
Cash Flow After Taxes	-30,210	158,613	154,188	191,873	196,601	201,416	206,317	211,305	216,382	221,549	226,806

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%)	$ 1,612,700
Cap Rate (26.00%) & NOI	$ 1,434,111
Gross Rent Multiplier	$ 1,431,817

Sale Proceeds

Projected Selling Price	$ 1,612,700
Costs of Sale (6.00%)	$ 96,762
2. Loan Balance Payoff	$ 737,698
Net Sale Proceeds Before Tax	$ 778,240

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	$ 778,240
Investor Cash Outlay	$ 30,210
Net Assets	$ 748,030
Average Yield
Annual Net Assets	$ 74,803
Average Cash Flow (After Taxes)	$ 175,824
Average Annual Gain (After Taxes)	$ 250,627
Average Annual Yield (After Taxes)	50.13 %

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.

Lender Summary for Hard Money

Financing of: Purchase + Repairs
Type: Interest-Only
Loan term: 2 years

Loan Assumptions		% of ARV
After Repair Value	$ 1,200,000	100.00 %
Purchase Price	$ 500,000	41.67 %
Purchase Costs	$ 30,210	2.52 %
Repair Costs	$ 310,500	25.87 %
Holding Costs	$ 0	0.00 %
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 840,710	70.06 %
Financed Amount	$ 810,500	67.54 %
Down payment (0%)	$ 0	0.00 %
Loan Amount	$ 810,500	67.54 %

Lender Returns
Interest Rate	13.00 %
Interest Income	$ 210,730
Points (2.000)	$ 16,210
Fees	$ 7,000
Total Income to Lender	$ 233,940
Lender's ROI	28.86 %
Lender's Annualized ROI	14.43 %

Lender Summary for Conventional (Refinance)

Financing of: Refinance
Type: Amortized
Amortization: 30 years

Loan Assumptions		% of ARV
After Repair Value	$ 1,200,000	100.00 %
Purchase Price	$ 500,000	41.67 %
Purchase Costs	$ 30,210	2.52 %
Repair Costs	$ 310,500	25.87 %
Holding Costs	$ 0	0.00 %
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 840,710	70.06 %
Financed Amount	$ 810,500	67.54 %
Loan Amount	$ 810,500	67.54 %

Lender Returns
Interest Rate	8.00 %
Interest Income	$ 1,330,478
Points (1.000)	$ 8,105
Fees	$ 1,000
Total Income to Lender	$ 1,339,583
Lender's ROI	165.28 %
Lender's Annualized ROI	5.51 %

Property Report: Waco Assisted Living RENTAL PUBLISHED

Property Report :

Waco Assisted Living

5409 Edinburgh Dr, Waco, TX 76710

Executive Summary

5409 Edinburgh Dr, Waco, TX 76710

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

$ 1,200,000

Property ARV

Singlefamily

Bldg type

4,319

SqFt

$ 278

per SqFt

7

Beds

4

Baths

$ 52,000

Rent

Singlefamily

Bldg type

4,319

SqFt

7

Beds

4

Baths

Rentometer®

Rentometer®

Rehab Estimates

Breakdown by Scope of Work

Foundation

Foundation

Garage

Garage

Tiling

Tiling

Permits & Fees

Permits & Fees

Concrete

Concrete

Landscaping

Landscaping

Doors & Trim

Doors & Trim

Miscellaneous

Miscellaneous

Masonry

Masonry

Demolition

Demolition

Flooring

Flooring

Pool

Pool

Siding & Paint

Siding & Paint

Framing & Drywall

Framing & Drywall

Cabinets

Cabinets

Architecture & Design

Architecture & Design

Decks & Porches

Decks & Porches

Electrical

Electrical

Painting

Rentometer^®

Rentometer^®