55 W 1930 N, Tooele UT 84074

55 W 1930 N, Tooele, UT 84074

Condominium: 3 bedrooms , 1.5 bathrooms

Year built: 2000, Size: 1291 SF

Investment strategy: Rental Property

Wonderful end-unit townhome in North Tooele! Only 12 minutes to I-80 and close to all major amenities. Wonderfully updated throughout! Kitchen completed with laminate flooring, stainless steel appliances, can lighting and large pantry. Rear patio is fully fenced and perfect for pets, bbq's and entertaining. Update bathrooms complete with tile floors, newer vanities, and updated light & plumbing fixtures. Spacious bedrooms, all tastefully decorated, updated light fixtures, and tasteful design accents. This home is in excellent condition and is move-in-ready. Seller has recently installed an oak handrail in the entryway. Furnace is only three years old, roof was replaced by HOA about 4 years ago.

Purchase Price$ 299,900

Rent$ 1,600/mo

Monthly Cash Flow$ 169

Cash on Cash Return1.30 %

Financial Analysis

Cash on Cash Return	1.30 %
Internal Rate of Return (IRR)	6.86 %
Capitalization Rate	4.27 %
Gross Rent Multiplier (GRM)	15.62
Debt-coverage Ratio (DCR)	1.19
Operating Expense Ratio (OER)	32.60 %

Financial Breakdown

Purchase Price	$ 299,900
Purchase Costs	$ 3,000
Repair/Construction Costs	$ 3,000
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 305,900
Financing	$ 149,950
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 155,950
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.	$ 149,950
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.	$ 6,000

Operating Analysis

Rent	$ 1,600/mo
Gross Operating Income (GOI)	$ 19,008
Total Expenses	$ 6,196
Net Operating Income (NOI)	$ 12,812
Annual Debt Service	$ 10,788
Cash Flow Before Taxes (CFBT)	$ 2,024
Income Tax Liability	$ -1,215
Cash Flow After Taxes (CFAT)	$ 3,238

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.	$ 192
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.	$ 19,008	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	$ 1,692	8.90 %
Repairs	$ 570	3.00 %
Association fees	$ 1,860	9.79 %
Property tax	$ 1,474	7.75 %
Insurance	$ 600	3.16 %
Total Expenses	$ 6,196	32.60 %
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.	$ 12,812	67.40 %

Cash Flow (Year 1)

Net Operating Income	$ 12,812	67.40 %
Annual Debt Service	$ 10,788	56.76 %
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.	$ 2,024	10.65 %
Income Tax Liability	$ -1,215	-6.39 %
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.	$ 3,238	17.04 %

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).	32.60 %
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.	89.35 %

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.	$ 82,066
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.	6.86 %
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	1.53
Annual Depreciation	$ 8,724

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.	1.30 %
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.	7.07 %
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.	4.27 %
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.	6.40 %
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.	15.62

Financing
Down Payment		$ 149,950
conventional		$ 149,950
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.		50.00 %
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).		49.50 %
Debt Coverage Ratio		1.19

conventional Financing of: Purchase price ($ 299,900)
Type	Amortized
Loan Amount	$ 149,950
Down payment (50%)	$ 149,950
Amortization	30 years
Interest Rate	6.00 %
Monthly Payment	$ 899.03

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	19,200	19,584	19,976	20,375	20,783	21,198	21,622	22,055	22,496	22,946	23,405	23,873	24,350	24,837	25,334	25,841	26,358	26,885	27,422	27,971	28,530	29,101	29,683	30,276	30,882	31,500	32,130	32,772	33,428	34,096
Vacancy Loss	0	192	196	200	204	208	212	216	221	225	229	234	239	244	248	253	258	264	269	274	280	285	291	297	303	309	315	321	328	334	341
Gross Operating Income	0	19,008	19,388	19,776	20,171	20,575	20,986	21,406	21,834	22,271	22,716	23,171	23,634	24,107	24,589	25,081	25,582	26,094	26,616	27,148	27,691	28,245	28,810	29,386	29,974	30,573	31,185	31,808	32,444	33,093	33,755
Expenses	0	6,196	6,320	6,446	6,575	6,707	6,841	6,978	7,117	7,260	7,405	7,553	7,704	7,858	8,015	8,175	8,339	8,506	8,676	8,849	9,026	9,207	9,391	9,579	9,770	9,966	10,165	10,368	10,576	10,787	11,003
Net Operating Income	0	12,812	13,068	13,330	13,596	13,868	14,146	14,428	14,717	15,011	15,312	15,618	15,930	16,249	16,574	16,905	17,243	17,588	17,940	18,299	18,665	19,038	19,419	19,807	20,203	20,607	21,020	21,440	21,869	22,306	22,752
Loan Payment	0	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788	10,788
Payment Interest Part	0	8,947	8,833	8,713	8,585	8,449	8,305	8,151	7,989	7,816	7,633	7,438	7,231	7,012	6,779	6,532	6,269	5,991	5,695	5,381	5,047	4,693	4,317	3,918	3,494	3,044	2,567	2,059	1,521	949	343
Payment Principal Part	0	1,841	1,955	2,076	2,204	2,339	2,484	2,637	2,800	2,972	3,156	3,350	3,557	3,776	4,009	4,256	4,519	4,798	5,094	5,408	5,741	6,095	6,471	6,871	7,294	7,744	8,222	8,729	9,267	9,839	10,446
Cash Flow
Repairs/Construction	3,000	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	-155,950	2,024	2,280	2,541	2,808	3,080	3,357	3,640	3,929	4,223	4,523	4,830	5,142	5,460	5,785	6,117	6,455	6,800	7,152	7,510	7,876	8,250	8,630	9,019	9,415	9,819	10,231	10,652	11,080	11,518	11,964
Depreciation	0	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724
Taxes	0	-1,215	-1,122	-1,027	-928	-826	-721	-612	-499	-382	-261	-136	-6	128	268	412	563	718	880	1,049	1,223	1,405	1,594	1,791	1,996	2,210	2,432	2,664	2,906	3,158	3,421
Cash Flow After Taxes	-155,950	3,238	3,402	3,568	3,736	3,906	4,078	4,252	4,428	4,605	4,785	4,966	5,148	5,332	5,518	5,705	5,893	6,081	6,271	6,462	6,653	6,844	7,036	7,228	7,419	7,609	7,799	7,987	8,174	8,360	8,542

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 (3.00%)	$ 727,936
Cap Rate (4.27%) & NOI	$ 532,837
Gross Rent Multiplier	$ 532,583

Sale Proceeds

Projected Selling Price	$ 727,936
Costs of Sale (6.00%)	$ 43,676
Net Sale Proceeds Before Tax	$ 684,260

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	$ 684,260
Investor Cash Outlay	$ 155,950
Net Assets	$ 528,310
Average Yield
Annual Net Assets	$ 17,610
Average Cash Flow (After Taxes)	$ 5,549
Average Annual Gain (After Taxes)	$ 23,160
Average Annual Yield (After Taxes)	7.72 %

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: 55 W 1930 N, Tooele RENTAL PUBLISHED

Property Report :

55 W 1930 N, Tooele, UT 84074

Executive Summary