Property Report: 570 E 500 N RENTAL

Property Report :

570 E 500 N

570 E 500 N, Provo, UT

Created on: Apr 15, 2025

Author: David Hampton

570 E 500 N, Provo, UT

Singlefamily:

Investment strategy: Rental Property

Purchase Price$ 369,900
Rent$ 2,640/mo
Monthly Cash Flow$ 404
Cash on Cash Return5.13 %

Financial Analysis

Cash on Cash Return 5.13 %
Internal Rate of Return (IRR) 15.21 %
Capitalization Rate 5.61 %
Gross Rent Multiplier (GRM) 11.68
Debt-coverage Ratio (DCR) 1.30
Operating Expense Ratio (OER) 31.10 %

Financial Breakdown

Purchase Price $ 369,900
Purchase Costs $ 2,000
Repair/Construction Costs $ 0
Total Capital Needed
$ 371,900
Financing $ 277,425
Total Cash Needed
$ 94,475
Cash at Closing
$ 92,475
Cash During Rehab
$ 2,000

Operating Analysis

Rent $ 2,640/mo
Gross Operating Income (GOI) $ 30,096
Total Expenses $ 9,360
Net Operating Income (NOI) $ 20,736
Annual Debt Service $ 15,894
Cash Flow Before Taxes (CFBT) $ 4,842
Income Tax Liability $ 0
Cash Flow After Taxes (CFAT) $ 4,842

570 E 500 N

Purchase Price $ 369,900
Address 570 E 500 N , Provo, UT
Type Singlefamily
570 E 500 N Provo, UT
  • Singlefamily

    Bldg type

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Annual Property Operating Data

Incomes % of GOI
Gross Scheduled Income
$ 31,680    
Total Gross Income $ 31,680  
Vacancy loss
$ 1,584  
Gross Operating Income
$ 30,096 100.00 %
Expenses
Repairs $ 1,200 3.99 %
Manager $ 3,180 10.57 %
Prop_taxes $ 3,000 9.97 %
Prop_insurance $ 780 2.59 %
Capex $ 1,200 3.99 %
Total Expenses $ 9,360 31.10 %
Net Operating Income
$ 20,736 68.90 %

Cash Flow (Year 1)

Net Operating Income $ 20,736 68.90 %
Annual Debt Service $ 15,894 52.81 %
Cash Flow Before Taxes (CFBT)
$ 4,842 16.09 %
Income Tax Liability $ 0 0.00 %
Cash Flow After Taxes (CFAT)
$ 4,842 16.09 %

Operating Ratios

Operating Expense Ratio
31.10 %
Break-Even Ratio
83.91 %

Financial Measures

Net Present Value
$ 44,583
Internal Rate of Return
15.21 %
Profitability Index
1.47
Annual Depreciation $ 10,761

Holding period of 10 years and discount rate of 10.00% 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
5.13 %
Return on Investment
16.87 %
Capitalization Rate
5.61 %
Gross Rental Yield
8.56 %
Gross Rent Multiplier
11.68
Financing
Down Payment $ 92,475
Loan $ 277,425
Loan to Value Ratio
75.00 %
Loan to Cost Ratio
75.00 %
Debt Coverage Ratio 1.30
Loan

Financing of: Purchase price ($ 369,900)

Type Amortized
Loan Amount $ 277,425
Down payment (25%) $ 92,475
Amortization 30 years
Interest Rate 4.00 %
Monthly Payment $ 1,324.47

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
Operational Analysis
Gross Scheduled Income
Vacancy Loss
Gross Operating Income
Expenses
Net Operating Income
Loan Payment
Payment Interest Part
Payment Principal Part
Cash Flow
Repairs/Construction
Cash Flow Before Taxes
Depreciation 0
Taxes
Cash Flow After Taxes

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%) $ 497,115
Cap Rate (5.61%) & NOI $ 482,278
Gross Rent Multiplier $ 482,795

Sale Proceeds

Projected Selling Price $ 497,115
Costs of Sale (7.00%) $ 34,798
Net Sale Proceeds Before Tax $ 243,751

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 $ 243,751
Investor Cash Outlay $ 94,475
Net Assets $ 149,276
Average Yield
Annual Net Assets $ 14,928
Average Cash Flow (After Taxes) $ 0
Average Annual Gain (After Taxes) $ 0
Average Annual Yield (After Taxes) 0.00 %

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.

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