6303 Tennessee Ave NPR-BRRRR: 6303 Tennessee Ave, New Port Richey FL 34653

6303 Tennessee Ave, New Port Richey, FL 34653

Singlefamily: 3 bedrooms , 1 bathroom

Year built: 1936, Size: 905 SF

Investment strategy: Rental Property

Purchase Price$ 99,000

Rent$ 1,300/mo

Monthly Cash Flow$ 461

Cash on Cash Return65.04 %

Financial Analysis

Cash on Cash Return	65.04 %
Internal Rate of Return (IRR)	45.41 %
Capitalization Rate	8.56 %
Gross Rent Multiplier (GRM)	8.33
Debt-coverage Ratio (DCR)	1.99
Operating Expense Ratio (OER)	26.43 %
After Repair Value	$ 130,000
Profit/Equity From Rehab	$ 17,500

Financial Breakdown

Purchase Price	$ 99,000
Purchase Costs	$ 1,500
Repair/Construction Costs	$ 12,000
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 112,500
Financing	$ 104,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 8,500
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.	$ 8,500

Operating Analysis

Rent	$ 1,300/mo
Gross Operating Income (GOI)	$ 15,132
Total Expenses	$ 3,999
Net Operating Income (NOI)	$ 11,133
Annual Debt Service	$ 5,604
Cash Flow Before Taxes (CFBT)	$ 5,529
Income Tax Liability	$ 1,161
Cash Flow After Taxes (CFAT)	$ 4,368

Purchase Price	$ 99,000
Address	6303 Tennessee Ave , New Port Richey, 34653, FL
Year Built	1936
Type	Singlefamily
Size	905 SF
Bedrooms	3
Bathrooms	1

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.	$ 15,600
Total Gross Income	$ 15,600
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.	$ 468
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.	$ 15,132	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	$ 1,513	10.00 %
Insurance	$ 1,500	9.91 %
Property tax	$ 986	6.52 %
Total Expenses	$ 3,999	26.43 %
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.	$ 11,133	73.57 %

Cash Flow (Year 1)

Net Operating Income	$ 11,133	73.57 %
Annual Debt Service	$ 5,604	37.03 %
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.	$ 5,529	36.54 %
Income Tax Liability	$ 1,161	7.67 %
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.	$ 4,368	28.86 %

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).	26.43 %
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.	63.46 %

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.	$ 11,661
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.	45.41 %
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	2.37
Annual Depreciation	$ 2,880

Holding period of 5 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.	65.04 %
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.	99.98 %
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.	8.56 %
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.	15.76 %
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.	8.33

Financing		% of ARV
Down Payment	$ 0	0.00 %
BRRRR @ 80% ARV	$ 104,000	80.00 %
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.		105.05 %
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).		93.69 %
Debt Coverage Ratio		1.99

BRRRR @ 80% ARV Financing of: Specific amount ($ 104,000)
Type	Amortized
Loan Amount	$ 104,000
Down payment (0%)	$ 0
Amortization	30 years
Interest Rate	3.50 %
Monthly Payment	$ 467.01

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
Operational Analysis
Gross Scheduled Income	0	15,600	15,912	16,230	16,555	16,886
Vacancy Loss	0	468	477	487	497	507
Gross Operating Income	0	15,132	15,435	15,743	16,058	16,379
Expenses	0	3,999	4,079	4,161	4,244	4,329
Net Operating Income	0	11,133	11,355	11,583	11,814	12,051
Loan Payment	0	5,604	5,604	5,604	5,604	5,604
Payment Interest Part	0	3,608	3,537	3,464	3,388	3,309
Payment Principal Part	0	1,996	2,067	2,140	2,217	2,295
Cash Flow
Repairs/Construction	12,000	0	0	0	0	0
Cash Flow Before Taxes	-8,500	5,529	5,751	5,978	6,210	6,446
Depreciation	0	2,880	2,880	2,880	2,880	2,880
Taxes	0	1,161	1,235	1,310	1,387	1,465
Cash Flow After Taxes	-8,500	4,368	4,517	4,669	4,823	4,981

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 5 years. Below is the resale price calculated using different methods.

	$ 0
Appreciation (3.00%)	$ 150,706
Cap Rate (8.56%) & NOI	$ 140,777
Gross Rent Multiplier	$ 140,660

Sale Proceeds

Projected Selling Price	$ 0
Costs of Sale (6.00%)	$ 0
1. Loan Balance Payoff	$ 93,285
Net Sale Proceeds Before Tax	$ 0

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	$ 0
Investor Cash Outlay	$ 8,500
Net Assets	$ -8,500
Average Yield
Annual Net Assets	$ -1,700
Average Cash Flow (After Taxes)	$ 3,675
Average Annual Gain (After Taxes)	$ 1,975
Average Annual Yield (After Taxes)	2.00 %

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: 6303 Tennessee Ave NPR-BRRRR RENTAL PUBLISHED

Property Report :

6303 Tennessee Ave NPR-BRRRR

6303 Tennessee Ave, New Port Richey, FL 34653

Executive Summary

6303 Tennessee Ave, New Port Richey, FL 34653

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