718 Greenridge Ln, Saint Peters MO 63376

718 Greenridge Ln, Saint Peters, MO 63376

Singlefamily: 3 bedrooms , 3 bathrooms

Year built: 1977, Size: 2968 SF

Investment strategy: Rental Property

Purchase Price$ 299,900

Rent$ 2,030/mo

Monthly Cash Flow$ -581

Cash on Cash Return-10.73 %

Financial Analysis

Cash on Cash Return	-10.73 %
Internal Rate of Return (IRR)	N/A
Capitalization Rate	121.80 %
Gross Rent Multiplier (GRM)	0.41
Debt-coverage Ratio (DCR)	0.64
Operating Expense Ratio (OER)	50.00 %
After Repair Value	$ 10,000

Financial Breakdown

Purchase Price	$ 299,900
Purchase Costs	$ 5,000
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).	$ 304,900
Financing	$ 239,920
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 64,980
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.	$ 59,980
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.	$ 5,000

Operating Analysis

Rent	$ 2,030/mo
Gross Operating Income (GOI)	$ 24,360
Total Expenses	$ 12,180
Net Operating Income (NOI)	$ 12,180
Annual Debt Service	$ 19,154
Cash Flow Before Taxes (CFBT)	$ -6,974
Income Tax Liability	$ -3,315
Cash Flow After Taxes (CFAT)	$ -3,659

Welcome to this stunning 3 bed, 3 full bath ranch nestled on a quiet street in St. Charles County! This home is truly one of a kind & has been meticulously maintained w/attention to every detail! From the unique light fixtures throughout to the stunning beams on the vaulted living room ceiling, you'll never run out of features to love! The main floor offers an open-concept kitchen & separate dining area w/a massive window above the sink that overlooks a beautiful backyard complete w/full fencing on nearly a quarter acre! You'll also find main floor laundry, gas fireplace in living room, eat-in kitchen, & main floor primary suite w/large walk-in closet & private bath. On the lower level, you will find even more space for entertaining--including bar area as well as sleeping room & full bath! Did we mention the walk-out? W/nearly 3000 sq ft of living space, this home has something for everyone! Close proximity to major roads/hwys (364/94), dining, shopping, fitness, parks, and more!

Purchase Price	$ 299,900
Address	718 Greenridge Ln , Saint Peters, 63376, MO
MLS^® #	23012566
Listing Agent	Maggie Clubb
Listing Broker	Worth Clark Realty
Year Built	1977
Type	Singlefamily
Size	2968 SF
Bedrooms	3
Bathrooms	3

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.	$ 24,360
Total Gross Income	$ 24,360
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.	$ 24,360	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).
50% rule	$ 12,180	50.00 %
Total Expenses	$ 12,180	50.00 %
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.	$ 12,180	50.00 %

Cash Flow (Year 1)

Net Operating Income	$ 12,180	50.00 %
Annual Debt Service	$ 19,154	78.63 %
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.	$ -6,974	-28.63 %
Income Tax Liability	$ -3,315	-13.61 %
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.	$ -3,659	-15.02 %

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).	50.00 %
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.	128.63 %

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.	$ -207,469
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.	N/A
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	-2.19
Annual Depreciation	$ 8,724

Holding period of 10 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.	-10.73 %
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.	3.11 %
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.	121.80 %
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.	8.12 %
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.	0.41

Financing		% of ARV
Down Payment	$ 59,980	599.80 %
Loan	$ 239,920	2,399.20 %
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.		80.00 %
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).		80.00 %
Debt Coverage Ratio		0.64

Loan Financing of: Purchase price ($ 299,900)
Type	Amortized
Loan Amount	$ 239,920
Down payment (20%)	$ 59,980
Amortization	30 years
Interest Rate	7.00 %
Monthly Payment	$ 1,596.19

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
Operational Analysis
Gross Scheduled Income	0	24,360	24,847	25,344	25,851	26,368	26,895	27,433	27,982	28,542	29,112
Vacancy Loss	0	0	0	0	0	0	0	0	0	0	0
Gross Operating Income	0	24,360	24,847	25,344	25,851	26,368	26,895	27,433	27,982	28,542	29,112
Expenses	0	12,180	12,424	12,672	12,926	13,184	13,448	13,717	13,991	14,271	14,556
Net Operating Income	0	12,180	12,424	12,672	12,926	13,184	13,448	13,717	13,991	14,271	14,556
Loan Payment	0	19,154	19,154	19,154	19,154	19,154	19,154	19,154	19,154	19,154	19,154
Payment Interest Part	0	16,717	16,541	16,352	16,150	15,932	15,699	15,450	15,182	14,895	14,587
Payment Principal Part	0	2,437	2,613	2,802	3,005	3,222	3,455	3,705	3,973	4,260	4,568
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-64,980	-6,974	-6,731	-6,482	-6,229	-5,970	-5,707	-5,438	-5,163	-4,884	-4,598
Depreciation	0	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724	8,724
Taxes	0	-3,315	-3,210	-3,101	-2,987	-2,868	-2,744	-2,614	-2,479	-2,337	-2,189
Cash Flow After Taxes	-64,980	-3,659	-3,520	-3,381	-3,242	-3,102	-2,963	-2,823	-2,685	-2,547	-2,409

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 10 years. Below is the resale price calculated using different methods.

Appreciation (3.00%)	$ 13,439
Cap Rate (121.80%) & NOI	$ 11,951
Gross Rent Multiplier	$ 11,936

Sale Proceeds

Projected Selling Price	$ 13,439
Costs of Sale (6.00%)	$ 806
1. Loan Balance Payoff	$ 205,881
Net Sale Proceeds Before Tax	$ -193,248

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	$ -193,248
Investor Cash Outlay	$ 64,980
Net Assets	$ -258,228
Average Yield
Annual Net Assets	$ -25,823
Average Cash Flow (After Taxes)	$ -2,792
Average Annual Gain (After Taxes)	$ -28,615
Average Annual Yield (After Taxes)	-9.54 %

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: 718 Greenridge Ln, Saint Peters RENTAL

Property Report :

718 Greenridge Ln, Saint Peters, MO 63376

Executive Summary