6645 Vandike St, Philadelphia PA 19135

6645 Vandike St, Philadelphia, PA 19135

Townhouse: 4 bedrooms , 2 bathrooms

Year built: 1935, Size: 2318 SF

Investment strategy: Rental Property

Purchase Price$ 240,000

Rent$ 1,900/mo

Monthly Cash Flow$ 338

Cash on Cash Return4.95 %

Financial Analysis

Cash on Cash Return	4.95 %
Internal Rate of Return (IRR)	10.82 %
Capitalization Rate	7.65 %
Gross Rent Multiplier (GRM)	10.53
Debt-coverage Ratio (DCR)	1.28
Operating Expense Ratio (OER)	17.81 %

Financial Breakdown

Purchase Price	$ 240,000
Purchase Costs	$ 10,000
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).	$ 250,000
Financing	$ 168,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 82,000
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.	$ 72,000
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.	$ 10,000

Operating Analysis

Rent	$ 1,900/mo
Gross Operating Income (GOI)	$ 22,344
Total Expenses	$ 3,980
Net Operating Income (NOI)	$ 18,364
Annual Debt Service	$ 14,304
Cash Flow Before Taxes (CFBT)	$ 4,060
Income Tax Liability	$ -354
Cash Flow After Taxes (CFAT)	$ 4,415

Another stunning remodeled home by JA Designer Homes Llc. 6645 Vandike St is a turn key ready move in property with; 4 bedrooms and a den that adds space for an office, baby room or a designer closet.. completely new one and a half baths, a private covered porch, fully finished basement- adding a full estimated 1, 671 of living space. , all new black trimming french windows, recessed lighting throughout, indoor wood style vinyl flooring, all new electrical appliances, new water broiler, new kitchen with white cabinets and black granite counter top, new kitchen stove oven and over the range microwave, Kitchen features a distinctive breakfast/passthrough bar. Roof has freshly coated sealant for added protection, generous sized private back yard for family gatherings and sizzling summer fun. Don't be late... schedule your showing today.

Purchase Price	$ 240,000
Address	6645 Vandike St , Philadelphia, 19135, PA
MLS^® #	PAPH2378382
Listing Agent	Myra Bouvier-Hervy
Year Built	1935
Type	Townhouse
Size	2318 SF
Bedrooms	4
Bathrooms	2

Property History

Date	Price	Event
7/25/2024	249000	Price Changed
7/20/2024	249999	Listed
9/28/2023	92500	Sold
9/13/2023	99900	Listed
6/19/2023		Listing removed
4/30/2023	723700	Sold
4/26/2023	99900	Listed
9/24/1989	37900	Sold

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.	$ 22,800
Total Gross Income	$ 22,800
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.	$ 456
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.	$ 22,344	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	$ 1,020	4.56 %
Insurance	$ 1,000	4.48 %
Repairs	$ 447	2.00 %
Property tax	$ 1,513	6.77 %
Total Expenses	$ 3,980	17.81 %
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.	$ 18,364	82.19 %

Cash Flow (Year 1)

Net Operating Income	$ 18,364	82.19 %
Annual Debt Service	$ 14,304	64.02 %
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.	$ 4,060	18.17 %
Income Tax Liability	$ -354	-1.59 %
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.	$ 4,415	19.76 %

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).	17.81 %
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.	81.83 %

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.	$ 156,855
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.	10.82 %
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	2.91
Annual Depreciation	$ 6,982

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.	4.95 %
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.	13.73 %
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.	7.65 %
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.	9.50 %
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.	10.53

Financing
Down Payment		$ 72,000
DSCR		$ 168,000
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.		70.00 %
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).		70.00 %
Debt Coverage Ratio		1.28

DSCR Financing of: Purchase price ($ 240,000)
Type	Amortized
Loan Amount	$ 168,000
Down payment (30%)	$ 72,000
Amortization	30 years
Interest Rate	7.65 %
Monthly Payment	$ 1,191.98

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	22,800	23,256	23,721	24,196	24,679	25,173	25,677	26,190	26,714	27,248	27,793	28,349	28,916	29,494	30,084	30,686	31,300	31,926	32,564	33,215	33,880	34,557	35,248	35,953	36,672	37,406	38,154	38,917	39,695	40,489
Vacancy Loss	0	456	465	474	484	494	503	514	524	534	545	556	567	578	590	602	614	626	639	651	664	678	691	705	719	733	748	763	778	794	810
Gross Operating Income	0	22,344	22,791	23,247	23,712	24,186	24,670	25,163	25,666	26,180	26,703	27,237	27,782	28,338	28,904	29,482	30,072	30,674	31,287	31,913	32,551	33,202	33,866	34,543	35,234	35,939	36,658	37,391	38,139	38,901	39,679
Expenses	0	3,980	4,059	4,141	4,223	4,308	4,394	4,482	4,572	4,663	4,756	4,851	4,948	5,047	5,148	5,251	5,356	5,464	5,573	5,684	5,798	5,914	6,032	6,153	6,276	6,401	6,529	6,660	6,793	6,929	7,068
Net Operating Income	0	18,364	18,731	19,106	19,488	19,878	20,275	20,681	21,095	21,516	21,947	22,386	22,833	23,290	23,756	24,231	24,716	25,210	25,714	26,228	26,753	27,288	27,834	28,391	28,958	29,538	30,128	30,731	31,345	31,972	32,612
Loan Payment	0	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304	14,304
Payment Interest Part	0	12,800	12,681	12,552	12,413	12,264	12,102	11,928	11,739	11,536	11,317	11,080	10,825	10,549	10,251	9,930	9,584	9,210	8,806	8,370	7,900	7,393	6,845	6,254	5,616	4,928	4,185	3,383	2,517	1,583	575
Payment Principal Part	0	1,504	1,623	1,752	1,890	2,040	2,202	2,376	2,565	2,768	2,987	3,224	3,479	3,755	4,053	4,374	4,720	5,094	5,498	5,934	6,404	6,911	7,459	8,050	8,688	9,376	10,119	10,921	11,786	12,720	13,728
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	-82,000	4,060	4,428	4,802	5,184	5,574	5,972	6,377	6,791	7,213	7,643	8,082	8,530	8,986	9,452	9,927	10,412	10,906	11,410	11,925	12,449	12,984	13,530	14,087	14,655	15,234	15,824	16,427	17,042	17,669	18,308
Depreciation	0	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982	6,982
Taxes	0	-354	-233	-107	23	158	298	443	593	750	912	1,081	1,257	1,440	1,631	1,830	2,038	2,255	2,482	2,719	2,968	3,228	3,502	3,789	4,090	4,407	4,740	5,092	5,462	5,852	6,264
Cash Flow After Taxes	-82,000	4,415	4,660	4,909	5,161	5,416	5,674	5,934	6,197	6,463	6,731	7,001	7,273	7,546	7,821	8,098	8,374	8,652	8,929	9,206	9,481	9,756	10,028	10,298	10,564	10,827	11,084	11,336	11,580	11,817	12,044

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%)	$ 582,543
Cap Rate (7.65%) & NOI	$ 426,298
Gross Rent Multiplier	$ 426,352

Sale Proceeds

Projected Selling Price	$ 582,543
Costs of Sale (6.00%)	$ 34,953
Net Sale Proceeds Before Tax	$ 547,590

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	$ 547,590
Investor Cash Outlay	$ 82,000
Net Assets	$ 465,590
Average Yield
Annual Net Assets	$ 15,520
Average Cash Flow (After Taxes)	$ 7,841
Average Annual Gain (After Taxes)	$ 23,361
Average Annual Yield (After Taxes)	9.73 %

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: 6645 Vandike St, Philadelphia RENTAL

Property Report :

6645 Vandike St, Philadelphia, PA 19135

Executive Summary