$930,000 Clyde North HPS: Lot 942 Vulpine St, Clyde North 3978, AU

Lot 942 Vulpine St Riverfield Estate, Clyde North, 3978

Commercial (Special-Purpose): 3 rooms: 3 bedrooms , 3 bathrooms

Year built: 2024, Size: 208 SM

Investment strategy: Rental Property

The information presented in this presentation regarding the rental potential of National Disability Insurance Scheme (NDIS) Specialist Disability Accommodation (SDA) is intended for informational purposes only and should not be construed as financial, legal, or investment advice. Investment in NDIS SDA properties carries inherent risks, and individual circumstances can greatly impact rental potential. We strongly advise consulting with qualified professionals, including financial advisors, legal experts, and real estate professionals, to assess the suitability of NDIS SDA investments for your specific situation. We disclaim any responsibility for decisions made based on the information provided in this presentation.

Purchase Price$ 916,000

Rent$ 15,057/mo

Monthly Cash Flow$ 6,589

Cash on Cash Return52.98 %

Financial Analysis

Cash on Cash Return	52.98 %
Internal Rate of Return (IRR)	55.79 %
Capitalization Rate	16.64 %
Gross Rent Multiplier (GRM)	5.07
Debt-coverage Ratio (DCR)	2.08
Operating Expense Ratio (OER)	11.19 %

Financial Breakdown

Purchase Price	$ 916,000
Purchase Costs	$ 57,637
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).	$ 973,637
Financing	$ 824,400
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 149,237
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.	$ 91,600
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.	$ 57,637

Operating Analysis

Rent	$ 15,057/mo
Gross Operating Income (GOI)	$ 171,650
Total Expenses	$ 19,216
Net Operating Income (NOI)	$ 152,434
Annual Debt Service	$ 73,365
Cash Flow Before Taxes (CFBT)	$ 79,069
Income Tax Liability	$ 0
Cash Flow After Taxes (CFAT)	$ 79,069

Suitable for 2 SDA Participants with Overnight Carer Accommodation

Purchase Price	$ 916,000
Address	Lot 942 Vulpine St Riverfield Estate, Clyde North, 3978, AU
Year Built	2024
Type	Commercial
Category	Special-Purpose
Size	208 SM
Bedrooms	3
Bathrooms	3
Rooms Total	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.	$ 180,684
Total Gross Income	$ 180,684
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.	$ 9,034
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.	$ 171,650	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).
SDA Provider	$ 6,600	3.85 %
Council Rates	$ 2,500	1.46 %
Insurance (comm)	$ 2,500	1.46 %
Water supply	$ 750	0.44 %
Misc maintenance	$ 6,866	4.00 %
Total Expenses	$ 19,216	11.19 %
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.	$ 152,434	88.81 %

Cash Flow (Year 1)

Net Operating Income	$ 152,434	88.81 %
Annual Debt Service	$ 73,365	42.74 %
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.	$ 79,069	46.06 %
Income Tax Liability	$ 0	0.00 %
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.	$ 79,069	46.06 %

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).	11.19 %
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.	53.94 %

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.	$ 1,850,426
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.	55.79 %
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	13.40
Annual Depreciation	$ 16,441

Holding period of 20 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.	52.98 %
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.	83.67 %
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.	16.64 %
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.	19.73 %
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.	5.07

Financing
Down Payment		$ 91,600
NDIS		$ 824,400
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).		90.00 %
Debt Coverage Ratio		2.08

NDIS Financing of: Purchase price ($ 916,000)
Type	Amortized
Loan Amount	$ 824,400
Down payment (10%)	$ 91,600
Amortization	25 years
Interest Rate	7.54 %
Monthly Payment	$ 6,113.71

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
Operational Analysis
Gross Scheduled Income	0	180,684	183,394	186,145	188,937	191,771	194,648	197,568	200,531	203,539	206,592	209,691	212,837	216,029	219,270	222,559	225,897	229,285	232,725	236,216	239,759
Vacancy Loss	0	9,034	9,170	9,307	9,447	9,589	9,732	9,878	10,027	10,177	10,330	10,485	10,642	10,801	10,963	11,128	11,295	11,464	11,636	11,811	11,988
Gross Operating Income	0	171,650	174,225	176,838	179,490	182,183	184,916	187,689	190,505	193,362	196,263	199,207	202,195	205,228	208,306	211,431	214,602	217,821	221,088	224,405	227,771
Expenses	0	19,216	19,600	19,992	20,392	20,800	21,216	21,640	22,073	22,515	22,965	23,424	23,893	24,371	24,858	25,355	25,862	26,379	26,907	27,445	27,994
Net Operating Income	0	152,434	154,624	156,846	159,098	161,383	163,700	166,049	168,432	170,848	173,298	175,782	178,302	180,857	183,448	186,076	188,740	191,442	194,181	196,960	199,777
Loan Payment	0	73,365	73,365	73,365	73,365	73,365	73,365	73,365	73,365	73,365	73,365	73,365	73,365	73,365	73,365	73,365	73,365	73,365	73,365	73,365	73,365
Payment Interest Part	0	61,764	60,859	59,883	58,830	57,696	56,472	55,154	53,732	52,200	50,548	48,767	46,846	44,776	42,545	40,139	37,545	34,749	31,735	28,485	24,982
Payment Principal Part	0	11,600	12,506	13,482	14,534	15,669	16,892	18,211	19,632	21,165	22,817	24,598	26,518	28,588	30,820	33,226	35,819	38,615	41,630	44,879	48,383
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
Cash Flow Before Taxes	-149,237	79,069	81,260	83,481	85,734	88,018	90,335	92,684	95,067	97,483	99,933	102,418	104,938	107,493	110,084	112,711	115,375	118,077	120,817	123,595	126,412
Depreciation	0	16,441	16,441	16,441	16,441	16,441	16,441	16,441	16,441	16,441	16,441	16,441	16,441	16,441	16,441	16,441	16,441	16,441	16,441	16,441	16,441
Taxes	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Cash Flow After Taxes	-149,237	79,069	81,260	83,481	85,734	88,018	90,335	92,684	95,067	97,483	99,933	102,418	104,938	107,493	110,084	112,711	115,375	118,077	120,817	123,595	126,412

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 20 years. Below is the resale price calculated using different methods.

Appreciation (5.00%)	$ 2,430,421
Cap Rate (16.64%) & NOI	$ 1,200,582
Gross Rent Multiplier	$ 1,215,577

Sale Proceeds

Projected Selling Price	$ 2,430,421
Costs of Sale (2.20%)	$ 53,469
1. Loan Balance Payoff	$ 304,817
Net Sale Proceeds Before Tax	$ 2,072,134

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	$ 2,072,134
Investor Cash Outlay	$ 149,237
Net Assets	$ 1,922,897
Average Yield
Annual Net Assets	$ 96,145
Average Cash Flow (After Taxes)	$ 95,429
Average Annual Gain (After Taxes)	$ 191,573
Average Annual Yield (After Taxes)	20.91 %

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: $930,000 Clyde North HPS RENTAL PUBLISHED

Property Report :

$930,000 Clyde North HPS

Lot 942 Vulpine St Riverfield Estate, Clyde North, 3978

Executive Summary

Lot 942 Vulpine St Riverfield Estate, Clyde North, 3978

Financial Analysis

Financial Breakdown

Total Capital Needed

Total Capital Needed

Cash out of Pocket

Cash out of Pocket

Cash at Closing

Cash at Closing

Cash During Rehab

Cash During Rehab

Operating Analysis

Property Description

Operating Analysis

Annual Property Operating Data

Gross Scheduled Income (GSI)

Gross Scheduled Income (GSI)

Vacancy and Credit Loss

Vacancy and Credit Loss

Gross Operating Income (GOI)

Gross Operating Income (GOI)

Operating Expenses

Operating Expenses

Net Operating Income (NOI)

Net Operating Income (NOI)

Cash Flow (Year 1)

Cash Flow

Cash Flow

Cash Flow

Cash Flow

Operating Ratios

Operating Expense Ratio

Operating Expense Ratio

Break-Even Ratio (BER)

Break-Even Ratio (BER)

Financial Analysis

Financial Measures

Net Present Value (NPV)

Net Present Value (NPV)

Internal Rate of Return (IRR)

Internal Rate of Return (IRR)

Profitability Index

Profitability Index

Investment Return Ratios

Cash on Cash Return

Cash on Cash Return

Return on Investment

Return on Investment

Capitalization Rate

Capitalization Rate

Gross Rental Yield

Gross Rental Yield

Gross Rent Multiplier (GRM)

Gross Rent Multiplier (GRM)

Financing Overview

Loan to Value Ratio

Loan to Value Ratio

Loan to Cost Ratio

Loan to Cost Ratio

Long-term Cash Flow Forecast

Resale Analysis

Resale Price Evaluation Methods

Sale Proceeds

Net Assets and Yield

Photos