713-715 Parsons Ave, Columbus OH 43206

713-715 Parsons Ave, Columbus, OH 43206

Multifamily:

Year built: 1900, Size: 5200 SF

Investment strategy: Rental Property

Purchase Price$ 575,000

Rent$ 5,000/mo

Monthly Cash Flow$ 987

Cash on Cash Return47.85 %

Financial Analysis

Cash on Cash Return	47.85 %
Internal Rate of Return (IRR)	102.54 %
Capitalization Rate	5.15 %
Gross Rent Multiplier (GRM)	15.34
Debt-coverage Ratio (DCR)	1.33
Operating Expense Ratio (OER)	12.18 %
After Repair Value	$ 920,400
Profit/Equity From Rehab	$ 320,650

Financial Breakdown

Purchase Price	$ 575,000
Purchase Costs	$ 24,750
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).	$ 599,750
Financing	$ 575,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 24,750
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.	$ 17,250
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.	$ 7,500

Operating Analysis

Rent	$ 5,000/mo
Gross Operating Income (GOI)	$ 54,000
Total Expenses	$ 6,578
Net Operating Income (NOI)	$ 47,422
Annual Debt Service	$ 35,579
Cash Flow Before Taxes (CFBT)	$ 11,843
Income Tax Liability	$ 1,037
Cash Flow After Taxes (CFAT)	$ 10,806

Completely renovated, this spacious double is just steps from Nationwide Children's hospital, a neighborhood with a strong history of short and long-term rental income. A great option for an investor or owner-occupant, with over 5, 200 total square feet, 4 beds & 3 baths on each side. Eight private parking spaces available. Updates include a new roof (2019), high-efficiency HVAC (2013), new windows, washer/dryers, plumbing & electrical. Don't miss out on this rare investment opportunity! Both sides can be rented for a total of $49, 200 per year or more!

Purchase Price	$ 575,000
Address	713-715 Parsons Ave , Columbus, 43206, OH
MLS^® #	221007953
Listing Agent	Jonathan Gilchrist
Listing Broker	ROLLS REALTY
Year Built	1900
Type	Multifamily
Number of Units
Size	5200 SF

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.	$ 60,000
Total Gross Income	$ 60,000
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.	$ 6,000
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.	$ 54,000	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).
Real Property Management	$ 1,680	3.11 %
Utilities	$ 1,020	1.89 %
Property tax	$ 1,728	3.20 %
Insurance	$ 2,150	3.98 %
Total Expenses	$ 6,578	12.18 %
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.	$ 47,422	87.82 %

Cash Flow (Year 1)

Net Operating Income	$ 47,422	87.82 %
Annual Debt Service	$ 35,579	65.89 %
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.	$ 11,843	21.93 %
Income Tax Liability	$ 1,037	1.92 %
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.	$ 10,806	20.01 %

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).	12.18 %
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.	78.07 %

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.	$ 401,324
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.	102.54 %
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	17.22
Annual Depreciation	$ 16,727

Holding period of 5 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.	47.85 %
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.	117.55 %
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.	5.15 %
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.	10.43 %
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.	15.34

Financing		% of ARV
Down Payment	$ 0	0.00 %
5 yr Int Only - Tidal Loans	$ 575,000	62.47 %
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.		100.00 %
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).		100.00 %
Debt Coverage Ratio		1.33

5 yr Int Only - Tidal Loans Financing of: Purchase price ($ 575,000)
Type	Amortized
Loan Amount	$ 575,000
Down payment (0%)	$ 0
Amortization	30 years
Interest Rate	4.65 %
Monthly Payment	$ 2,964.91

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
Operational Analysis
Gross Scheduled Income	0	60,000	61,200	62,424	63,672	64,946
Vacancy Loss	0	6,000	6,120	6,242	6,367	6,495
Gross Operating Income	0	54,000	55,080	56,182	57,305	58,451
Expenses	0	6,578	6,710	6,844	6,981	7,120
Net Operating Income	0	47,422	48,370	49,338	50,325	51,331
Loan Payment	0	35,579	35,579	35,579	35,579	35,579
Payment Interest Part	0	26,547	26,118	25,668	25,197	24,704
Payment Principal Part	0	9,032	9,461	9,911	10,382	10,875
Cash Flow
Repairs/Construction	0	0	0	0	0	0
Cash Flow Before Taxes	-24,750	11,843	12,792	13,759	14,746	15,752
Depreciation	0	16,727	16,727	16,727	16,727	16,727
Taxes	0	1,037	1,381	1,736	2,100	2,475
Cash Flow After Taxes	-24,750	10,806	11,410	12,023	12,646	13,277

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 5 years. Below is the resale price calculated using different methods.

Appreciation (3.00%)	$ 1,066,996
Cap Rate (5.15%) & NOI	$ 996,720
Gross Rent Multiplier	$ 996,271

Sale Proceeds

Projected Selling Price	$ 1,066,996
Costs of Sale (6.00%)	$ 64,020
1. Loan Balance Payoff	$ 525,339
Net Sale Proceeds Before Tax	$ 477,637

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	$ 477,637
Investor Cash Outlay	$ 24,750
Net Assets	$ 452,887
Average Yield
Annual Net Assets	$ 90,577
Average Cash Flow (After Taxes)	$ 9,377
Average Annual Gain (After Taxes)	$ 99,954
Average Annual Yield (After Taxes)	17.38 %

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: 713-715 Parsons Ave, Columbus RENTAL

Property Report :

713-715 Parsons Ave, Columbus, OH 43206

Executive Summary