628 W Ganson St, Jackson MI 49201

628 W Ganson St, Jackson, MI 49201

Multifamily:

Year built: 1905,

Investment strategy: Rental Property

Purchase Price$ 107,000

Rent$ 3,300/mo

Monthly Cash Flow$ 2,135

Cash on Cash Return95.79 %

Financial Analysis

Cash on Cash Return	95.79 %
Internal Rate of Return (IRR)	76.17 %
Capitalization Rate	29.34 %
Gross Rent Multiplier (GRM)	2.70
Debt-coverage Ratio (DCR)	5.44
Operating Expense Ratio (OER)	18.26 %

Financial Breakdown

Purchase Price	$ 107,000
Purchase Costs	$ 0
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).	$ 107,000
Financing	$ 80,250
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 26,750
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.	$ 26,750
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.	$ 0

Operating Analysis

Rent	$ 3,300/mo
Gross Operating Income (GOI)	$ 38,412
Total Expenses	$ 7,015
Net Operating Income (NOI)	$ 31,397
Annual Debt Service	$ 5,774
Cash Flow Before Taxes (CFBT)	$ 25,623
Income Tax Liability	$ 5,874
Cash Flow After Taxes (CFAT)	$ 19,749

Attention investors! Check out this affordable 4 unit in the City of Jackson. Great cash flow with all units rented. Current monthly rents are $800, $800, $800 and $900. Three units are 1 bedroom and 1 bath and one unit is 2 bedroom and 1 bath. Water heater is three years old. Reach out to Sara Perkin to schedule your showing today!

Purchase Price	$ 107,000
Address	628 W Ganson St , Jackson, 49201, MI
MLS^® #	23004356
Listing Agent	Sara Perkin
Listing Broker	XSell Realty
Year Built	1905
Type	Multifamily
Number of Units	4

Unit	Rent
1	$ 800/mo
2	$ 800/mo
3	$ 800/mo
	$ 900/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.	$ 39,600
Total Gross Income	$ 39,600
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.	$ 1,188
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.	$ 38,412	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).
Utilities	$ 900	2.34 %
Repairs	$ 1,152	3.00 %
Property tax	$ 3,763	9.80 %
Insurance	$ 1,200	3.12 %
Total Expenses	$ 7,015	18.26 %
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.	$ 31,397	81.74 %

Cash Flow (Year 1)

Net Operating Income	$ 31,397	81.74 %
Annual Debt Service	$ 5,774	15.03 %
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.	$ 25,623	66.71 %
Income Tax Liability	$ 5,874	15.29 %
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.	$ 19,749	51.41 %

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).	18.26 %
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.	33.29 %

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.	$ 422,784
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.	76.17 %
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	16.81
Annual Depreciation	$ 3,113

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.	95.79 %
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.	107.79 %
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.	29.34 %
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.	37.01 %
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.	2.70

Financing
Down Payment		$ 26,750
Loan		$ 80,250
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		5.44

Loan Financing of: Purchase price ($ 107,000)
Type	Amortized
Loan Amount	$ 80,250
Down payment (25%)	$ 26,750
Amortization	30 years
Interest Rate	6.00 %
Monthly Payment	$ 481.14

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	39,600	40,392	41,200	42,024	42,864	43,722	44,596	45,488	46,398	47,326	48,272	49,238	50,222	51,227	52,251	53,296	54,362	55,450	56,559	57,690	58,844	60,020	61,221	62,445	63,694	64,968	66,267	67,593	68,945	70,323
Vacancy Loss	0	1,188	1,212	1,236	1,261	1,286	1,312	1,338	1,365	1,392	1,420	1,448	1,477	1,507	1,537	1,568	1,599	1,631	1,663	1,697	1,731	1,765	1,801	1,837	1,873	1,911	1,949	1,988	2,028	2,068	2,110
Gross Operating Income	0	38,412	39,180	39,964	40,763	41,578	42,410	43,258	44,123	45,006	45,906	46,824	47,760	48,716	49,690	50,684	51,698	52,731	53,786	54,862	55,959	57,078	58,220	59,384	60,572	61,783	63,019	64,279	65,565	66,876	68,214
Expenses	0	7,015	7,156	7,299	7,445	7,594	7,746	7,900	8,058	8,220	8,384	8,552	8,723	8,897	9,075	9,257	9,442	9,631	9,823	10,020	10,220	10,424	10,633	10,846	11,062	11,284	11,509	11,740	11,974	12,214	12,458
Net Operating Income	0	31,397	32,025	32,665	33,318	33,985	34,664	35,358	36,065	36,786	37,522	38,272	39,038	39,819	40,615	41,427	42,256	43,101	43,963	44,842	45,739	46,654	47,587	48,539	49,509	50,500	51,510	52,540	53,591	54,662	55,756
Loan Payment	0	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774	5,774
Payment Interest Part	0	4,788	4,727	4,663	4,594	4,522	4,444	4,362	4,275	4,183	4,085	3,981	3,870	3,753	3,628	3,496	3,355	3,206	3,048	2,880	2,701	2,512	2,310	2,097	1,870	1,629	1,374	1,102	814	508	183
Payment Principal Part	0	985	1,046	1,111	1,179	1,252	1,329	1,411	1,498	1,591	1,689	1,793	1,904	2,021	2,146	2,278	2,418	2,568	2,726	2,894	3,073	3,262	3,463	3,677	3,904	4,145	4,400	4,672	4,960	5,266	5,590
Cash Flow
Repairs/Construction	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	0
Cash Flow Before Taxes	-26,750	25,623	26,251	26,891	27,545	28,211	28,891	29,584	30,291	31,013	31,748	32,499	33,264	34,045	34,841	35,654	36,482	37,327	38,189	39,068	39,965	40,880	41,813	42,765	43,736	44,726	45,736	46,766	47,817	48,889	49,982
Depreciation	0	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113	3,113
Taxes	0	5,874	6,046	6,222	6,403	6,588	6,777	6,971	7,169	7,373	7,581	7,795	8,014	8,238	8,468	8,705	8,947	9,195	9,451	9,712	9,981	10,257	10,541	10,832	11,132	11,439	11,756	12,081	12,416	12,760	13,115
Cash Flow After Taxes	-26,750	19,749	20,205	20,669	21,142	21,624	22,114	22,613	23,122	23,640	24,167	24,704	25,250	25,807	26,373	26,949	27,535	28,132	28,739	29,356	29,984	30,623	31,272	31,933	32,604	33,287	33,980	34,685	35,401	36,128	36,867

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%)	$ 259,717
Cap Rate (29.34%) & NOI	$ 190,033
Gross Rent Multiplier	$ 189,873

Sale Proceeds

Projected Selling Price	$ 259,717
Costs of Sale (6.00%)	$ 15,583
Net Sale Proceeds Before Tax	$ 244,134

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	$ 244,134
Investor Cash Outlay	$ 26,750
Net Assets	$ 217,384
Average Yield
Annual Net Assets	$ 7,246
Average Cash Flow (After Taxes)	$ 26,393
Average Annual Gain (After Taxes)	$ 33,639
Average Annual Yield (After Taxes)	31.44 %

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: 628 W Ganson St, Jackson RENTAL

Property Report :

628 W Ganson St, Jackson, MI 49201

Executive Summary