5575 NE 30th St Unit 1-3, Silver Springs FL 34488

5575 NE 30th St Unit 1-3, Silver Springs, FL 34488

Multifamily: 4 bedrooms , 3 bathrooms

Year built: 1963, Size: 2666 SF

Investment strategy: Rental Property

Purchase Price$ 375,000

Rent$ 3,350/mo

Monthly Cash Flow$ 1,221

Cash on Cash Return16.84 %

Financial Analysis

Cash on Cash Return	16.84 %
Internal Rate of Return (IRR)	21.84 %
Capitalization Rate	8.49 %
Gross Rent Multiplier (GRM)	9.33
Debt-coverage Ratio (DCR)	1.85
Operating Expense Ratio (OER)	15.74 %

Financial Breakdown

Purchase Price	$ 375,000
Purchase Costs	$ 12,000
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).	$ 387,000
Financing	$ 300,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 87,000
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.	$ 75,000
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.	$ 12,000

Operating Analysis

Rent	$ 3,350/mo
Gross Operating Income (GOI)	$ 37,788
Total Expenses	$ 5,948
Net Operating Income (NOI)	$ 31,840
Annual Debt Service	$ 17,187
Cash Flow Before Taxes (CFBT)	$ 14,653
Income Tax Liability	$ 2,257
Cash Flow After Taxes (CFAT)	$ 12,396

TRIPLEX - Recently completely renovated in 2020. Huge back yard, maintenance shed, good tenants, great property manager. This is a very simple property, income is $33, 600 and expenses are $5, 760 = net of $27, 480.Two BR/1.5 bath downstairs. 2 X One BR/1 bath Upstairs.2 STORY APARTMENT BUILDING FOR SALE! 3 APARTMENTS TOTAL. DOWNSTAIRS 3 BEDROOM /1 1/2 BATH W/DINNING ROOM AND LARGE LIVING ROOM. UPSTAIRS 2-1/1 APARTMENTS. ONE IS SMALLER WITH 4 ROOMS, THE OTHER ONE IS LARGER WITH LARGE LIVING ROOM AND LARGE KITCHEN/DINNING AREA. All apartments have new central AC systems, new waterproof laminate flooring, new cabinets and countertops, new tubs, new windows ($10, 000), new interior and exterior doors, new trim, paint and all new appliances! Property is zoned B2 commercial if needed. Lot has large fenced backyard. There is also a small utility type building out back for storage (originally it was wash house.)which could converted to laundry room. County water and septic so no well or septic tank repairs. 1 block from post office and Silver Springs attraction. No dishwashers or laundry hookups in apartments.

Purchase Price	$ 375,000
Address	5575 NE 30th St Unit 1-3 , Silver Springs, 34488, FL
MLS^® #	U8130775
Listing Agent	Alex Williams
Listing Broker	DALTON WADE INC
Year Built	1963
Type	Multifamily
Number of Units	3
Size	2666 SF
Bedrooms	4
Bathrooms	3

Unit	Rent
3br	$ 1,450/mo
1/1A	$ 950/mo
1/1B	$ 950/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.	$ 40,200
Total Gross Income	$ 40,200
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.	$ 2,412
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.	$ 37,788	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	$ 1,889	5.00 %
Property tax	$ 2,367	6.26 %
Insurance	$ 1,692	4.48 %
Total Expenses	$ 5,948	15.74 %
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.	$ 31,840	84.26 %

Cash Flow (Year 1)

Net Operating Income	$ 31,840	84.26 %
Annual Debt Service	$ 17,187	45.48 %
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.	$ 14,653	38.78 %
Income Tax Liability	$ 2,257	5.97 %
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.	$ 12,396	32.80 %

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).	15.74 %
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.	61.22 %

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.	$ 168,469
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.	21.84 %
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	2.94
Annual Depreciation	$ 10,909

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.	16.84 %
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.	29.77 %
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.	8.49 %
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.	10.72 %
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.	9.33

Financing
Down Payment		$ 75,000
Loan		$ 300,000
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.		80.00 %
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).		80.00 %
Debt Coverage Ratio		1.85

Loan Financing of: Purchase price ($ 375,000)
Type	Amortized
Loan Amount	$ 300,000
Down payment (20%)	$ 75,000
Amortization	30 years
Balloon Payment	Year 25
Interest Rate	4.00 %
Monthly Payment	$ 1,432.25

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	40,200	41,004	41,824	42,661	43,514	44,384	45,272	46,177	47,101	48,043
Vacancy Loss	0	2,412	2,460	2,509	2,560	2,611	2,663	2,716	2,771	2,826	2,883
Gross Operating Income	0	37,788	38,544	39,315	40,101	40,903	41,721	42,555	43,407	44,275	45,160
Expenses	0	5,948	6,067	6,189	6,312	6,439	6,568	6,699	6,833	6,970	7,109
Net Operating Income	0	31,840	32,476	33,126	33,788	34,464	35,154	35,857	36,574	37,305	38,051
Loan Payment	0	17,187	17,187	17,187	17,187	17,187	17,187	17,187	17,187	17,187	17,187
Payment Interest Part	0	11,904	11,689	11,465	11,231	10,989	10,736	10,473	10,200	9,915	9,619
Payment Principal Part	0	5,283	5,498	5,722	5,956	6,198	6,451	6,713	6,987	7,272	7,568
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-87,000	14,653	15,289	15,939	16,601	17,277	17,967	18,670	19,387	20,118	20,864
Depreciation	0	10,909	10,909	10,909	10,909	10,909	10,909	10,909	10,909	10,909	10,909
Taxes	0	2,257	2,470	2,688	2,912	3,142	3,377	3,619	3,866	4,120	4,381
Cash Flow After Taxes	-87,000	12,396	12,820	13,251	13,689	14,136	14,590	15,051	15,521	15,998	16,484

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%)	$ 503,969
Cap Rate (8.49%) & NOI	$ 448,189
Gross Rent Multiplier	$ 448,238

Sale Proceeds

Projected Selling Price	$ 503,969
Costs of Sale (6.00%)	$ 30,238
1. Loan Balance Payoff	$ 236,352
Net Sale Proceeds Before Tax	$ 237,379

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	$ 237,379
Investor Cash Outlay	$ 87,000
Net Assets	$ 150,379
Average Yield
Annual Net Assets	$ 15,038
Average Cash Flow (After Taxes)	$ 12,745
Average Annual Gain (After Taxes)	$ 27,783
Average Annual Yield (After Taxes)	7.41 %

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: 5575 NE 30th St Unit 1-3, Silver Springs RENTAL

Property Report :

5575 NE 30th St Unit 1-3, Silver Springs, FL 34488

Executive Summary