7307 N Hidden Rd Unit 2851, Eagle Mountain UT 84005

7307 N Hidden Rd Unit 2851, Eagle Mountain, UT 84005

Condominium: 3 bedrooms , 2.5 bathrooms

Year built: 2022, Size: 2115 SF

Investment strategy: Rental Property

New town home just released in Silver Lake. This town home is now completed and ready for a quick close! It is our only fully completed unit available. Contact agent for more details and showing instructions!

Purchase Price$ 428,066

Rent$ 2,100/mo

Monthly Cash Flow$ 237

Cash on Cash Return1.31 %

Financial Analysis

Cash on Cash Return	1.31 %
Internal Rate of Return (IRR)	6.66 %
Capitalization Rate	4.26 %
Gross Rent Multiplier (GRM)	16.99
Debt-coverage Ratio (DCR)	1.18
Operating Expense Ratio (OER)	26.86 %

Financial Breakdown

Purchase Price	$ 428,066
Purchase Costs	$ 4,200
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).	$ 432,266
Financing	$ 214,033
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 218,233
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.	$ 214,033
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.	$ 4,200

Operating Analysis

Rent	$ 2,100/mo
Gross Operating Income (GOI)	$ 24,948
Total Expenses	$ 6,701
Net Operating Income (NOI)	$ 18,247
Annual Debt Service	$ 15,399
Cash Flow Before Taxes (CFBT)	$ 2,848
Income Tax Liability	$ -1,744
Cash Flow After Taxes (CFAT)	$ 4,592

Purchase Price	$ 428,066
Address	7307 N Hidden Rd Unit 2851 , Eagle Mountain, 84005, UT
MLS^® #	1826034
Listing Agent	Shawn Swensen
Listing Broker	True North Realty
Year Built	2022
Type	Condominium
Size	2115 SF
Bedrooms	3
Bathrooms	2.5

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.	$ 25,200
Total Gross Income	$ 25,200
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.	$ 252
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.	$ 24,948	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	$ 2,220	8.90 %
Repairs	$ 748	3.00 %
Association fees	$ 1,080	4.33 %
Insurance	$ 852	3.42 %
Property Tax	$ 1,800	7.22 %
Total Expenses	$ 6,701	26.86 %
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.	$ 18,247	73.14 %

Cash Flow (Year 1)

Net Operating Income	$ 18,247	73.14 %
Annual Debt Service	$ 15,399	61.72 %
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.	$ 2,848	11.42 %
Income Tax Liability	$ -1,744	-6.99 %
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.	$ 4,592	18.41 %

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).	26.86 %
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.	88.58 %

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.	$ 20,467
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.	6.66 %
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	1.09
Annual Depreciation	$ 12,453

Holding period of 6 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.	1.31 %
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.	7.19 %
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.	4.26 %
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.	5.89 %
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.	16.99

Financing
Down Payment		$ 214,033
Conventional		$ 214,033
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.		50.00 %
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).		50.00 %
Debt Coverage Ratio		1.18

Conventional Financing of: Purchase price ($ 428,066)
Type	Amortized
Loan Amount	$ 214,033
Down payment (50%)	$ 214,033
Amortization	30 years
Interest Rate	6.00 %
Monthly Payment	$ 1,283.24

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
Operational Analysis
Gross Scheduled Income	0	25,200	25,704	26,218	26,742	27,277	27,823
Vacancy Loss	0	252	257	262	267	273	278
Gross Operating Income	0	24,948	25,447	25,956	26,475	27,005	27,545
Expenses	0	6,701	6,835	6,972	7,111	7,253	7,398
Net Operating Income	0	18,247	18,612	18,984	19,364	19,751	20,146
Loan Payment	0	15,399	15,399	15,399	15,399	15,399	15,399
Payment Interest Part	0	12,770	12,608	12,436	12,254	12,060	11,854
Payment Principal Part	0	2,628	2,790	2,963	3,145	3,339	3,545
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0
Cash Flow Before Taxes	-218,233	2,848	3,213	3,586	3,965	4,353	4,748
Depreciation	0	12,453	12,453	12,453	12,453	12,453	12,453
Taxes	0	-1,744	-1,612	-1,476	-1,336	-1,190	-1,040
Cash Flow After Taxes	-218,233	4,592	4,826	5,062	5,301	5,543	5,788

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 6 years. Below is the resale price calculated using different methods.

Appreciation (3.00%)	$ 511,133
Cap Rate (4.26%) & NOI	$ 472,919
Gross Rent Multiplier	$ 472,710

Sale Proceeds

Projected Selling Price	$ 511,133
Costs of Sale (6.00%)	$ 30,668
1. Loan Balance Payoff	$ 195,622
Net Sale Proceeds Before Tax	$ 284,843

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	$ 284,843
Investor Cash Outlay	$ 218,233
Net Assets	$ 66,610
Average Yield
Annual Net Assets	$ 11,102
Average Cash Flow (After Taxes)	$ 4,221
Average Annual Gain (After Taxes)	$ 15,322
Average Annual Yield (After Taxes)	3.58 %

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: 7307 N Hidden Rd Unit 2851, Eagle Mountain RENTAL

Property Report :

7307 N Hidden Rd Unit 2851, Eagle Mountain, UT 84005

Executive Summary