8400 W Charleston Blvd Apt 110, Las Vegas NV 89117

8400 W Charleston Blvd Apt 110, Las Vegas, NV 89117

Condominium: 2 bedrooms , 2 bathrooms

Year built: 1997, Size: 1138 SF

Investment strategy: Rental Property

Purchase Price$ 170,000

Rent$ 1,248/mo

Monthly Cash Flow$ 302

Cash on Cash Return10.64 %

Financial Analysis

Cash on Cash Return	10.64 %
Internal Rate of Return (IRR)	14.80 %
Capitalization Rate	6.18 %
Gross Rent Multiplier (GRM)	11.35
Debt-coverage Ratio (DCR)	1.53
Operating Expense Ratio (OER)	27.73 %

Financial Breakdown

Purchase Price	$ 170,000
Purchase Costs	$ 0
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).	$ 170,000
Financing	$ 136,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 34,000
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.	$ 34,000
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.	$ 0

Operating Analysis

Rent	$ 1,248/mo
Gross Operating Income (GOI)	$ 14,527
Total Expenses	$ 4,028
Net Operating Income (NOI)	$ 10,499
Annual Debt Service	$ 6,881
Cash Flow Before Taxes (CFBT)	$ 3,618
Income Tax Liability	$ 378
Cash Flow After Taxes (CFAT)	$ 3,240

Gorgeous 2 bedroom condominium with fantastic Patio. Nestled inside a beautiful complex. Stunning Master bedroom, updated kitchen with quartz countertops, stainless steel appliances, spacious floor plan, well maintained unit. The complex amenities includes a spacious modern clubhouse, pool, spa, and garden. Excellent location.

Purchase Price	$ 170,000
Address	8400 W Charleston Blvd Apt 110 , Las Vegas, 89117, NV
MLS^® #	2304843
Listing Agent	Sean Evenden
Listing Broker	LIFE Realty District
Year Built	1997
Type	Condominium
Size	1138 SF
Bedrooms	2
Bathrooms	2

Property History

Date	Price	Change	Event
3/31/2017

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.	$ 14,976
Total Gross Income	$ 14,976
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.	$ 449
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.	$ 14,527	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 tax	$ 788	5.42 %
Insurance	$ 540	3.72 %
HOA	$ 2,700	18.59 %
Total Expenses	$ 4,028	27.73 %
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.	$ 10,499	72.27 %

Cash Flow (Year 1)

Net Operating Income	$ 10,499	72.27 %
Annual Debt Service	$ 6,881	47.36 %
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.	$ 3,618	24.91 %
Income Tax Liability	$ 378	2.60 %
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.	$ 3,240	22.30 %

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).	27.73 %
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.	75.09 %

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.	$ 132,245
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.	14.80 %
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	4.89
Annual Depreciation	$ 4,945

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.	10.64 %
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.	25.64 %
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.	6.18 %
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.	8.81 %
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.	11.35

Financing
Down Payment		$ 34,000
30y		$ 136,000
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.		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		1.53

30y Financing of: Purchase price ($ 170,000)
Type	Amortized
Loan Amount	$ 136,000
Down payment (20%)	$ 34,000
Amortization	30 years
Interest Rate	3.00 %
Monthly Payment	$ 573.38

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	14,976	15,276	15,581	15,893	16,211	16,535	16,865	17,203	17,547	17,898	18,256	18,621	18,993	19,373	19,761	20,156	20,559	20,970	21,389	21,817	22,254	22,699	23,153	23,616	24,088	24,570	25,061	25,562	26,074	26,595
Vacancy Loss	0	449	458	467	477	486	496	506	516	526	537	548	559	570	581	593	605	617	629	642	655	668	681	695	708	723	737	752	767	782	798
Gross Operating Income	0	14,527	14,817	15,114	15,416	15,724	16,039	16,359	16,687	17,020	17,361	17,708	18,062	18,423	18,792	19,168	19,551	19,942	20,341	20,748	21,163	21,586	22,018	22,458	22,907	23,365	23,833	24,309	24,795	25,291	25,797
Expenses	0	4,028	4,109	4,191	4,275	4,360	4,447	4,536	4,627	4,719	4,814	4,910	5,008	5,108	5,211	5,315	5,421	5,530	5,640	5,753	5,868	5,985	6,105	6,227	6,352	6,479	6,608	6,741	6,875	7,013	7,153
Net Operating Income	0	10,499	10,709	10,923	11,141	11,364	11,591	11,823	12,060	12,301	12,547	12,798	13,054	13,315	13,581	13,853	14,130	14,412	14,701	14,995	15,295	15,601	15,913	16,231	16,555	16,887	17,224	17,569	17,920	18,279	18,644
Loan Payment	0	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881	6,881
Payment Interest Part	0	4,041	3,955	3,866	3,774	3,680	3,582	3,482	3,379	3,272	3,162	3,049	2,933	2,813	2,689	2,561	2,430	2,295	2,155	2,011	1,863	1,711	1,553	1,391	1,224	1,052	875	693	504	310	111
Payment Principal Part	0	2,839	2,926	3,015	3,106	3,201	3,298	3,399	3,502	3,609	3,718	3,831	3,948	4,068	4,192	4,319	4,451	4,586	4,725	4,869	5,017	5,170	5,327	5,489	5,656	5,828	6,005	6,188	6,376	6,570	6,770
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	-34,000	3,618	3,828	4,042	4,261	4,484	4,711	4,943	5,179	5,420	5,666	5,917	6,173	6,434	6,701	6,972	7,249	7,532	7,820	8,114	8,414	8,720	9,032	9,350	9,675	10,006	10,344	10,688	11,040	11,398	11,763
Depreciation	0	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945	4,945
Taxes	0	378	452	528	606	685	766	849	934	1,021	1,110	1,201	1,294	1,389	1,487	1,587	1,689	1,793	1,900	2,010	2,122	2,236	2,354	2,474	2,596	2,722	2,851	2,983	3,118	3,256	3,397
Cash Flow After Taxes	-34,000	3,240	3,376	3,514	3,655	3,799	3,945	4,094	4,245	4,399	4,556	4,716	4,879	5,045	5,214	5,386	5,561	5,739	5,920	6,105	6,292	6,484	6,678	6,877	7,078	7,284	7,493	7,705	7,922	8,142	8,366

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%)	$ 412,635
Cap Rate (6.18%) & NOI	$ 301,684
Gross Rent Multiplier	$ 301,853

Sale Proceeds

Projected Selling Price	$ 412,635
Costs of Sale (6.00%)	$ 24,758
Net Sale Proceeds Before Tax	$ 387,877

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	$ 387,877
Investor Cash Outlay	$ 34,000
Net Assets	$ 353,877
Average Yield
Annual Net Assets	$ 11,796
Average Cash Flow (After Taxes)	$ 5,311
Average Annual Gain (After Taxes)	$ 17,107
Average Annual Yield (After Taxes)	10.06 %

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: 8400 W Charleston Blvd Apt 110, Las Vegas RENTAL

Property Report :

8400 W Charleston Blvd Apt 110, Las Vegas, NV 89117

Executive Summary