8500 SW 133rd Ave Rd Apt 412, Miami FL 33183

8500 SW 133rd Ave Rd Apt 412, Miami, FL 33183

Condominium: 3 bedrooms , 2 bathrooms

Year built: 1981, Size: 1040 SF

Investment strategy: Rental Property

Purchase Price$ 223,500

Rent$ 2,675/mo

Monthly Cash Flow$ 631

Cash on Cash Return20.25 %

Financial Analysis

Cash on Cash Return	20.25 %
Internal Rate of Return (IRR)	25.76 %
Capitalization Rate	8.34 %
Gross Rent Multiplier (GRM)	6.96
Debt-coverage Ratio (DCR)	1.68
Operating Expense Ratio (OER)	37.54 %

Financial Breakdown

Purchase Price	$ 223,500
Purchase Costs	$ 12,023
Repair/Construction Costs	$ 3,000
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 238,523
Financing	$ 201,150
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 37,373
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.	$ 26,373
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.	$ 11,000

Operating Analysis

Rent	$ 2,675/mo
Gross Operating Income (GOI)	$ 29,853
Total Expenses	$ 11,208
Net Operating Income (NOI)	$ 18,645
Annual Debt Service	$ 11,076
Cash Flow Before Taxes (CFBT)	$ 7,569
Income Tax Liability	$ 1,203
Cash Flow After Taxes (CFAT)	$ 6,365

Corner unit apartment located on the 4th floor. It features 3 beds, 2 baths & a large balcony. This beautiful apartment is in Horizon West. Horizons West is a community located in the Kendall area of West Miami, Florida, it has been maintained and well cared for over the years, great landscaping with a picnic area and cabanas. The community has a gated entrance with a guard on duty, assigned parking, three pools, racquetball, tennis, and a clubhouse. Perfect Location on Kendall Drive near shopping centers, restaurants, movie theaters, and two minutes' drive to Turnpike expressway.

Purchase Price	$ 223,500
Address	8500 SW 133rd Ave Rd Apt 412 , Miami, 33183, FL
MLS^® #	A11134131
Listing Agent	Marco Torres
Listing Broker	Miami Premier Realty
Year Built	1981
Type	Condominium
Size	1040 SF
Bedrooms	3
Bathrooms	2

8500 SW 133rd Ave Rd Apt 412 Miami, FL 33183

Condominium

Bldg type
1,040

SqFt
3

Beds
2

Baths

#	Property address	Distance	Beds	Baths	SqFt	Bldg type	Date sold	Sale price	$/SqFt
1	8420 SW 133rd Avenue Rd Apt 406	0.1mi	3	2	1,040	condo	10/12/2021	$ 200,000	$ 192
2	8420 SW 133rd Avenue Rd Apt 218	0.1mi	3	2	1,040	condo	9/22/2021	$ 223,200	$ 215
3	8520 SW 133rd Avenue Rd Apt 214	0.1mi	3	2	1,040	condo	9/1/2021	$ 208,000	$ 200
4	8520 SW 133rd Avenue Rd Apt 112	0.1mi	3	2	1,040	condo	8/23/2021	$ 225,000	$ 216
5	8520 SW 133rd Ave Rd Apt 214	0.1mi	3	2	1,040	condo	8/24/2021	$ 208,000	$ 200
6	8540 SW 133rd Avenue Rd Apt 112	0.2mi	3	2	1,040	condo	11/5/2021	$ 215,000	$ 207
7	8600 SW 133rd Avenue Rd Apt 223	0.2mi	3	2	1,040	condo	11/11/2021	$ 205,000	$ 197
Average:								$ 212,029	$ 204

8500 SW 133rd Ave Rd Apt 412 Miami, FL 33183

$ 2,675

Rent
Condominium

Bldg type
1,040

SqFt
3

Beds
2

Baths

Your rent may be too high.

Average

$ 2,204

Median

$ 2,150

25th %

$ 1,958

75th %

$ 2,450

#	Property address	Similarity	Distance	Beds	Baths	SqFt	Date Listed	Bldg type	Rent
1	8500 Sw 133rd Ave Rd, Apt 111	95%	0.0mi	3	2	1,040	11/2/2021	Condo	$ 1,950
2	8500 Sw 133rd Ave Rd, Apt 118	95%	0.0mi	3	2	1,040	12/13/2021	Condo	$ 2,500
3	8540 Sw 133rd Ave Rd, Apt 407	95%	0.2mi	3	2	1,040	1/13/2022	Condo	$ 2,100
4	8600 Sw 133rd Avenue Rd, Apt 423	94%	0.3mi	3	2	1,040	2/3/2022	Condo	$ 2,200
5	8700 Sw 133rd Avenue Rd, Apt 312	94%	0.4mi	3	2	1,040	11/15/2021	Condo	$ 2,100

Property address	Similarity	Distance	Beds	Baths	SqFt	Date Listed	Bldg type	Rent
8500 Sw 133rd Ave Rd, Apt 111	95%	0.0mi	3	2	1,040	11/2/2021	Condo	$ 1,950
8500 Sw 133rd Ave Rd, Apt 118	95%	0.0mi	3	2	1,040	12/13/2021	Condo	$ 2,500
8540 Sw 133rd Ave Rd, Apt 407	95%	0.2mi	3	2	1,040	1/13/2022	Condo	$ 2,100
8600 Sw 133rd Avenue Rd, Apt 423	94%	0.3mi	3	2	1,040	2/3/2022	Condo	$ 2,200
8700 Sw 133rd Avenue Rd, Apt 312	94%	0.4mi	3	2	1,040	11/15/2021	Condo	$ 2,100

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.	$ 32,100
Total Gross Income	$ 32,100
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.	$ 2,247
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.	$ 29,853	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	$ 3,000	10.05 %
Association fees	$ 7,200	24.12 %
Insurance	$ 1,008	3.38 %
Total Expenses	$ 11,208	37.54 %
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.	$ 18,645	62.46 %

Cash Flow (Year 1)

Net Operating Income	$ 18,645	62.46 %
Annual Debt Service	$ 11,076	37.10 %
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.	$ 7,569	25.35 %
Income Tax Liability	$ 1,203	4.03 %
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.	$ 6,365	21.32 %

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).	37.54 %
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.	74.65 %

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.	$ 97,004
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.	25.76 %
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	3.60
Annual Depreciation	$ 6,502

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.	20.25 %
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.	38.19 %
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.	8.34 %
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.	14.36 %
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.	6.96

Financing
Down Payment		$ 22,350
LOAN		$ 201,150
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.		90.00 %
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).		88.81 %
Debt Coverage Ratio		1.68

LOAN Financing of: Purchase price ($ 223,500)
Type	Amortized
Loan Amount	$ 201,150
Down payment (10%)	$ 22,350
Amortization	30 years
Interest Rate	3.67 %
Monthly Payment	$ 923.02

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	32,100	32,742	33,397	34,065	34,746	35,441	36,150	36,873	37,610	38,362
Vacancy Loss	0	2,247	2,292	2,338	2,385	2,432	2,481	2,530	2,581	2,633	2,685
Gross Operating Income	0	29,853	30,450	31,059	31,680	32,314	32,960	33,619	34,292	34,978	35,677
Expenses	0	11,208	11,432	11,661	11,894	12,132	12,375	12,622	12,874	13,132	13,395
Net Operating Income	0	18,645	19,018	19,398	19,786	20,182	20,586	20,997	21,417	21,846	22,283
Loan Payment	0	11,076	11,076	11,076	11,076	11,076	11,076	11,076	11,076	11,076	11,076
Payment Interest Part	0	7,330	7,190	7,044	6,894	6,737	6,575	6,407	6,232	6,051	5,863
Payment Principal Part	0	3,747	3,887	4,032	4,183	4,339	4,501	4,669	4,844	5,025	5,213
Cash Flow
Repairs/Construction	3,000	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-37,373	7,569	7,942	8,322	8,710	9,106	9,509	9,921	10,341	10,769	11,206
Depreciation	0	6,502	6,502	6,502	6,502	6,502	6,502	6,502	6,502	6,502	6,502
Taxes	0	1,203	1,332	1,463	1,598	1,736	1,877	2,022	2,171	2,323	2,479
Cash Flow After Taxes	-37,373	6,365	6,610	6,859	7,112	7,370	7,632	7,899	8,170	8,446	8,727

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%)	$ 300,365
Cap Rate (8.34%) & NOI	$ 267,176
Gross Rent Multiplier	$ 267,003

Sale Proceeds

Projected Selling Price	$ 300,365
Costs of Sale (6.00%)	$ 18,022
1. Loan Balance Payoff	$ 156,711
Net Sale Proceeds Before Tax	$ 125,632

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	$ 125,632
Investor Cash Outlay	$ 37,373
Net Assets	$ 88,259
Average Yield
Annual Net Assets	$ 8,826
Average Cash Flow (After Taxes)	$ 6,646
Average Annual Gain (After Taxes)	$ 15,472
Average Annual Yield (After Taxes)	6.92 %

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.

Lender Summary for LOAN

Financing of: Purchase price
Type: Amortized
Amortization: 30 years

Loan Assumptions		% of ARV
After Repair Value	$ 0	0.00 %
Purchase Price	$ 223,500	%
Purchase Costs	$ 12,023	%
Repair Costs	$ 3,000	%
Holding Costs	$ 0	0.00 %
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 238,523	%
Financed Amount	$ 223,500	%
Down payment (10%)	$ 22,350	%
Loan Amount	$ 201,150	%

Lender Returns
Interest Rate	3.67 %
Interest Income	$ 131,136
Points (2.000)	$ 4,023
Fees	$ 3,000
Total Income to Lender	$ 138,159
Lender's ROI	68.68 %
Lender's Annualized ROI	2.29 %

Property Report: 8500 SW 133rd Ave Rd Apt 412, Miami RENTAL

Property Report :

8500 SW 133rd Ave Rd Apt 412, Miami, FL 33183

Executive Summary