874 Buxmont Ct, Rockledge FL 32955

874 Buxmont Ct, Rockledge, FL 32955

Singlefamily: 3 bedrooms , 2 bathrooms

Year built: 1967, Size: 1368 SF

Investment strategy: Rental Property

Purchase Price$ 245,982

Rent$ 4,000/mo

Monthly Cash Flow$ 3,089

Cash on Cash Return14.48 %

Financial Analysis

Cash on Cash Return	14.48 %
Internal Rate of Return (IRR)	13.49 %
Capitalization Rate	15.07 %
Gross Rent Multiplier (GRM)	5.12
Debt-coverage Ratio (DCR)	0.00
Operating Expense Ratio (OER)	18.70 %

Financial Breakdown

Purchase Price	$ 245,982
Purchase Costs	$ 10,000
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).	$ 255,982
Financing	$ 0
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 255,982
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.	$ 0
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.	$ 255,982

Operating Analysis

Rent	$ 4,000/mo
Gross Operating Income (GOI)	$ 45,600
Total Expenses	$ 8,529
Net Operating Income (NOI)	$ 37,071
Annual Debt Service	$ 0
Cash Flow Before Taxes (CFBT)	$ 37,071
Income Tax Liability	$ 7,479
Cash Flow After Taxes (CFAT)	$ 29,592

Ready to move! The home you have been waiting for! 3 bedroom, 2 bathroom. AC 2018, Roof 2020, interior freshly painted with neutral colors, Gorgeous brand new kitchen with gorgeous marble countertops & island, new stainless steel appliances. Spacious back yard with privacy fence. Great Covered patio for spending time with friends. No HOA. Central location, near I-95, restaurants, supermarkets, near shopping plaza, Lowe's and more. Quiet Neighborhood. Do not miss the opportunity to make this house your home!

Purchase Price	$ 245,982
Address	874 Buxmont Ct , Rockledge, 32955, FL
MLS^® #	902338
Listing Agent	Marcie Bolt
Listing Broker	Engel&Voelkers Melb Beachside
Year Built	1967
Type	Singlefamily
Size	1368 SF
Bedrooms	3
Bathrooms	2

Property History

Date	Price	Change	Event
12/9/2019
8/14/2013
11/14/2006

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.	$ 48,000
Total Gross Income	$ 48,000
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.	$ 2,400
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.	$ 45,600	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	$ 1,800	3.95 %
Utilities	$ 4,800	10.53 %
Property tax	$ 825	1.81 %
Insurance	$ 1,104	2.42 %
Total Expenses	$ 8,529	18.70 %
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.	$ 37,071	81.30 %

Cash Flow (Year 1)

Net Operating Income	$ 37,071	81.30 %
Annual Debt Service	$ 0	0.00 %
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.	$ 37,071	81.30 %
Income Tax Liability	$ 7,479	16.40 %
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.	$ 29,592	64.89 %

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).	18.70 %
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.	18.70 %

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.	$ 181,816
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.	13.49 %
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	1.71
Annual Depreciation	$ 7,156

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.	14.48 %
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.	17.36 %
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.	15.07 %
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.	19.51 %
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.	5.12

Financing
Down Payment		$ 0
Loan		$ 0
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.		0.00 %
Debt Coverage Ratio		0.00

Loan Financing of: Specific amount ($ 0)
Type	Amortized
Loan Amount	$ 0
Down payment (0%)	$ 0
Amortization	30 years
Interest Rate	0.00 %
Monthly Payment	$ 0.00

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	48,000	48,960	49,939	50,938	51,957	52,996	54,056	55,137	56,240	57,364
Vacancy Loss	0	2,400	2,448	2,497	2,547	2,598	2,650	2,703	2,757	2,812	2,868
Gross Operating Income	0	45,600	46,512	47,442	48,391	49,359	50,346	51,353	52,380	53,428	54,496
Expenses	0	8,529	8,700	8,874	9,051	9,232	9,417	9,605	9,798	9,994	10,193
Net Operating Income	0	37,071	37,812	38,568	39,340	40,126	40,929	41,748	42,582	43,434	44,303
Loan Payment	0	0	0	0	0	0	0	0	0	0	0
Payment Interest Part	0	0	0	0	0	0	0	0	0	0	0
Payment Principal Part	0	0	0	0	0	0	0	0	0	0	0
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-255,982	37,071	37,812	38,568	39,340	40,126	40,929	41,748	42,582	43,434	44,303
Depreciation	0	7,156	7,156	7,156	7,156	7,156	7,156	7,156	7,156	7,156	7,156
Taxes	0	7,479	7,664	7,853	8,046	8,243	8,443	8,648	8,857	9,070	9,287
Cash Flow After Taxes	-255,982	29,592	30,148	30,715	31,294	31,884	32,486	33,100	33,726	34,365	35,016

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%)	$ 330,579
Cap Rate (15.07%) & NOI	$ 293,980
Gross Rent Multiplier	$ 293,706

Sale Proceeds

Projected Selling Price	$ 330,579
Costs of Sale (6.00%)	$ 19,835
Net Sale Proceeds Before Tax	$ 310,744

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	$ 310,744
Investor Cash Outlay	$ 255,982
Net Assets	$ 54,762
Average Yield
Annual Net Assets	$ 5,476
Average Cash Flow (After Taxes)	$ 28,731
Average Annual Gain (After Taxes)	$ 34,207
Average Annual Yield (After Taxes)	13.91 %

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: 874 Buxmont Ct, Rockledge RENTAL

Property Report :

874 Buxmont Ct, Rockledge, FL 32955

Executive Summary