700 Lynn Cir SW, Atlanta GA 30311

700 Lynn Cir SW, Atlanta, GA 30311

Singlefamily: 3 bedrooms , 2 bathrooms

Year built: 1957, Size: 1602 SF

Investment strategy: Rental Property

Purchase Price$ 130,000

Rent$ 1,500/mo

Monthly Cash Flow$ 1,470

Cash on Cash Return11.24 %

Financial Analysis

Cash on Cash Return	11.24 %
Internal Rate of Return (IRR)	14.32 %
Capitalization Rate	9.05 %
Gross Rent Multiplier (GRM)	10.83
Debt-coverage Ratio (DCR)	0.00
Operating Expense Ratio (OER)	0.00 %
After Repair Value	$ 195,000
Profit/Equity From Rehab	$ 38,000

Financial Breakdown

Purchase Price	$ 130,000
Purchase Costs	$ 2,000
Repair/Construction Costs	$ 25,000
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 157,000
Financing	$ 0
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 157,000
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.	$ 0
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.	$ 157,000

Operating Analysis

Rent	$ 1,500/mo
Gross Operating Income (GOI)	$ 17,640
Total Expenses	$ 0
Net Operating Income (NOI)	$ 17,640
Annual Debt Service	$ 0
Cash Flow Before Taxes (CFBT)	$ 17,640
Income Tax Liability	$ 3,465
Cash Flow After Taxes (CFAT)	$ 14,176

Purchase Price	$ 130,000
Address	700 Lynn Cir SW , Atlanta, 30311, GA
Year Built	1957
Type	Singlefamily
Size	1602 SF
Bedrooms	3
Bathrooms	2

700 Lynn Cir SW Atlanta, GA 30311

$ 195,000

Property ARV
Singlefamily

Bldg type
1,602

SqFt
$ 122

per SqFt
3

Beds
2

Baths

#	Property address	Distance	Beds	Baths	SqFt	Date sold	Sale price	$/SqFt
1	3086 Lynn Dr SW #2	0.1mi	3	2.0	1,466	01/07/2020	$ 160,000	$ 109
2	3086 Lynn Dr SW	0.1mi	3	2.0	1,500	01/07/2020	$ 160,000	$ 107
3	530 Lynn Valley Rd SW	0.2mi	3	2.0	1,624	12/07/2020	$ 310,000	$ 191
4	477 Ivan Hill Cir SW	0.4mi	3	2.0	2,085	10/27/2020	$ 349,900	$ 168
5	487 Thackery Pl SW	0.4mi	3	2.0	1,600	07/16/2020	$ 128,100	$ 80
Average:							$ 221,600	$ 131

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.	$ 18,000
Total Gross Income	$ 18,000
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.	$ 360
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.	$ 17,640	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).
Total Expenses	$ 0	0.00 %
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.	$ 17,640	100.00 %

Cash Flow (Year 1)

Net Operating Income	$ 17,640	100.00 %
Annual Debt Service	$ 0	0.00 %
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.	$ 17,640	100.00 %
Income Tax Liability	$ 3,465	19.64 %
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.	$ 14,176	80.36 %

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).	0.00 %
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.	0.00 %

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.	$ 486,899
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.	14.32 %
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	4.10
Annual Depreciation	$ 3,782

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.	11.24 %
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.	16.20 %
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.	9.05 %
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.	13.85 %
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.	10.83

There is no financing selected in this deal.

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	18,000	18,900	19,845	20,837	21,879	22,973	24,122	25,328	26,594	27,924	29,320	30,786	32,325	33,942	35,639	37,421	39,292	41,256	43,319	45,485	47,759	50,147	52,655	55,287	58,052	60,954	64,002	67,202	70,562	74,090
Vacancy Loss	0	360	378	397	417	438	459	482	507	532	558	586	616	647	679	713	748	786	825	866	910	955	1,003	1,053	1,106	1,161	1,219	1,280	1,344	1,411	1,482
Gross Operating Income	0	17,640	18,522	19,448	20,421	21,442	22,514	23,639	24,821	26,062	27,365	28,734	30,170	31,679	33,263	34,926	36,672	38,506	40,431	42,453	44,575	46,804	49,144	51,602	54,182	56,891	59,735	62,722	65,858	69,151	72,609
Expenses	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
Net Operating Income	0	17,640	18,522	19,448	20,421	21,442	22,514	23,639	24,821	26,062	27,365	28,734	30,170	31,679	33,263	34,926	36,672	38,506	40,431	42,453	44,575	46,804	49,144	51,602	54,182	56,891	59,735	62,722	65,858	69,151	72,609
Cash Flow
Repairs/Construction	25,000	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	-157,000	17,640	18,522	19,448	20,421	21,442	22,514	23,639	24,821	26,062	27,365	28,734	30,170	31,679	33,263	34,926	36,672	38,506	40,431	42,453	44,575	46,804	49,144	51,602	54,182	56,891	59,735	62,722	65,858	69,151	72,609
Depreciation	0	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782	3,782
Taxes	0	3,465	3,685	3,917	4,160	4,415	4,683	4,964	5,260	5,570	5,896	6,238	6,597	6,974	7,370	7,786	8,223	8,681	9,162	9,668	10,198	10,756	11,341	11,955	12,600	13,277	13,988	14,735	15,519	16,342	17,207
Cash Flow After Taxes	-157,000	14,176	14,837	15,532	16,261	17,027	17,831	18,675	19,561	20,492	21,470	22,496	23,573	24,705	25,893	27,140	28,450	29,825	31,269	32,785	34,377	36,049	37,804	39,647	41,582	43,614	45,747	47,987	50,339	52,809	55,402

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 (6.00%)	$ 1,119,981
Cap Rate (9.05%) & NOI	$ 802,306
Gross Rent Multiplier	$ 802,400

Sale Proceeds

Projected Selling Price	$ 1,119,981
Costs of Sale (3.00%)	$ 33,599
Net Sale Proceeds Before Tax	$ 1,086,382

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	$ 1,086,382
Investor Cash Outlay	$ 157,000
Net Assets	$ 929,382
Average Yield
Annual Net Assets	$ 30,979
Average Cash Flow (After Taxes)	$ 28,398
Average Annual Gain (After Taxes)	$ 59,378
Average Annual Yield (After Taxes)	45.68 %

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: 700 Lynn Cir SW, Atlanta RENTAL

Property Report :

700 Lynn Cir SW, Atlanta, GA 30311

Executive Summary