6228 S Lakeview Dr, Mason OH 45040

6228 S Lakeview Dr, Mason, OH 45040

Singlefamily: 3 bedrooms , 2 bathrooms

Year built: 1974, Size: 1625 SF

Investment strategy: Rental Property

Purchase Price$ 325,000

Rent$ 2,800/mo

Monthly Cash Flow$ 489

Cash on Cash Return7.16 %

Financial Analysis

Cash on Cash Return	7.16 %
Internal Rate of Return (IRR)	14.76 %
Capitalization Rate	6.64 %
Gross Rent Multiplier (GRM)	9.67
Debt-coverage Ratio (DCR)	1.37
Operating Expense Ratio (OER)	35.79 %

Financial Breakdown

Purchase Price	$ 325,000
Purchase Costs	$ 800
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).	$ 325,800
Financing	$ 243,750
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 82,050
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.	$ 81,250
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.	$ 800

Operating Analysis

Rent	$ 2,800/mo
Gross Operating Income (GOI)	$ 33,600
Total Expenses	$ 12,024
Net Operating Income (NOI)	$ 21,576
Annual Debt Service	$ 15,702
Cash Flow Before Taxes (CFBT)	$ 5,874
Income Tax Liability	$ 4
Cash Flow After Taxes (CFAT)	$ 5,870

Gorgeous & Newly Remodeled on 1/2 Acre Lot! This Unique Find in Mason Schools is a 3 Bed Home That Looks Brand New! New Kitchen w/Granite Counters & Stainless Appliances.Updated Bathroom w/Beautiful Tile Work.Vinyl Wood-Look Floors Throughout. New Lighting & Fresh Paint. Very Large Yard w/Deck that Overlooks the Property & Storage Shed. LL Has Additional Family Room w/Fireplace. Could be 4th Bedroom. Some Windows are Being Replaced Before Closing But on Backorder. HVAC Replaced 2020.

Purchase Price	$ 325,000
Address	6228 S Lakeview Dr , Mason, 45040, OH
MLS^® #	1737191
Listing Agent	Bill Iliff
Listing Broker	Exp Realty
Year Built	1974
Type	Singlefamily
Size	1625 SF
Bedrooms	3
Bathrooms	2

Property History

Date	Price	Change	Event
4/6/2022

6228 S Lakeview Dr Mason, OH 45040

Singlefamily

Bldg type
1,625

SqFt
3

Beds
2

Baths

#	Property address	Distance	Beds	Baths	SqFt	Bldg type	Date sold	Sale price	$/SqFt
1	5718 Trailside Ct	0.5mi	3	2.5	1,704	single_family	11/24/2021	$ 305,000	$ 179
2	8156 Summer View Dr	0.6mi	3	2.5	1,747	single_family	12/22/2021	$ 335,000	$ 192
3	8000 Winters Ln	0.7mi	3	2	1,916	single_family	12/16/2021	$ 335,750	$ 175
4	8136 Indian Summer Way	0.7mi	3	2.5	1,719	single_family	11/2/2021	$ 307,500	$ 179
Average:								$ 320,813	$ 181

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.	$ 33,600
Total Gross Income	$ 33,600
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.	$ 33,600	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 TAX @ 2.2%	$ 7,150	21.28 %
LAWNCARE	$ 2,400	7.14 %
MAINTANCE REPAIRS	$ 672	2.00 %
TRASH	$ 552	1.64 %
INSURANCE	$ 1,250	3.72 %
Total Expenses	$ 12,024	35.79 %
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.	$ 21,576	64.21 %

Cash Flow (Year 1)

Net Operating Income	$ 21,576	64.21 %
Annual Debt Service	$ 15,702	46.73 %
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.	$ 5,874	17.48 %
Income Tax Liability	$ 4	0.01 %
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.	$ 5,870	17.47 %

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).	35.79 %
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.	82.52 %

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.	$ 146,857
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.	14.76 %
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	2.79
Annual Depreciation	$ 9,455

Holding period of 15 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.	7.16 %
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.	19.04 %
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.	6.64 %
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.	10.34 %
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.	9.67

Financing
Down Payment		$ 81,250
Loan		$ 243,750
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		1.37

Loan Financing of: Purchase price ($ 325,000)
Type	Amortized
Loan Amount	$ 243,750
Down payment (25%)	$ 81,250
Amortization	30 years
Interest Rate	5.00 %
Monthly Payment	$ 1,308.50

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
Operational Analysis
Gross Scheduled Income	0	33,600	34,272	34,957	35,657	36,370	37,097	37,839	38,596	39,368	40,155	40,958	41,777	42,613	43,465	44,334
Vacancy Loss	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Gross Operating Income	0	33,600	34,272	34,957	35,657	36,370	37,097	37,839	38,596	39,368	40,155	40,958	41,777	42,613	43,465	44,334
Expenses	0	12,024	12,264	12,510	12,760	13,015	13,275	13,541	13,812	14,088	14,370	14,657	14,950	15,249	15,554	15,865
Net Operating Income	0	21,576	22,008	22,448	22,897	23,355	23,822	24,298	24,784	25,280	25,785	26,301	26,827	27,364	27,911	28,469
Loan Payment	0	15,702	15,702	15,702	15,702	15,702	15,702	15,702	15,702	15,702	15,702	15,702	15,702	15,702	15,702	15,702
Payment Interest Part	0	12,106	11,922	11,728	11,525	11,311	11,087	10,851	10,602	10,342	10,067	9,779	9,476	9,157	8,823	8,471
Payment Principal Part	0	3,596	3,780	3,974	4,177	4,391	4,615	4,851	5,100	5,360	5,635	5,923	6,226	6,545	6,879	7,231
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-82,050	5,874	6,305	6,746	7,195	7,653	8,120	8,596	9,082	9,578	10,083	10,599	11,125	11,662	12,209	12,767
Depreciation	0	9,455	9,455	9,455	9,455	9,455	9,455	9,455	9,455	9,455	9,455	9,455	9,455	9,455	9,455	9,455
Taxes	0	4	158	316	479	647	820	998	1,182	1,371	1,566	1,767	1,974	2,188	2,408	2,636
Cash Flow After Taxes	-82,050	5,870	6,148	6,430	6,715	7,005	7,300	7,598	7,900	8,207	8,518	8,832	9,151	9,474	9,801	10,131

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 15 years. Below is the resale price calculated using different methods.

Appreciation (3.00%)	$ 506,339
Cap Rate (6.64%) & NOI	$ 428,751
Gross Rent Multiplier	$ 428,714

Sale Proceeds

Projected Selling Price	$ 506,339
Costs of Sale (6.00%)	$ 30,380
1. Loan Balance Payoff	$ 165,467
Net Sale Proceeds Before Tax	$ 310,492

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	$ 310,492
Investor Cash Outlay	$ 82,050
Net Assets	$ 228,442
Average Yield
Annual Net Assets	$ 15,229
Average Cash Flow (After Taxes)	$ 7,263
Average Annual Gain (After Taxes)	$ 22,493
Average Annual Yield (After Taxes)	6.92 %

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: 6228 S Lakeview Dr, Mason RENTAL

Property Report :

6228 S Lakeview Dr, Mason, OH 45040

Executive Summary