6 family cash cow · 6 family cash cow 146 inslee place elizabeth, new jersey 07206 purchase info...

Property Report

6 Family Cash Cow146 Inslee Place

Elizabeth, New Jersey 07206

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Overview6 Family Cash Cow146 Inslee PlaceElizabeth, New Jersey 07206

Purchase InfoTotal Number of Units 6Purchase Price $625,000Initial Cash Invested $163,750

Income Analysis Monthly AnnualNet Operating Income $5,271 $63,248Cash Flow $2,462 $29,540

Financial MetricsCap Rate (Purchase Price) 10.1%Cash on Cash Return (Year 1) 18.0%Internal Rate of Return (Year 10) 26.1%Sale Price (Year 10) $839,948


Purchase Analysis6 Family Cash Cow146 Inslee PlaceElizabeth, New Jersey 07206

Purchase InfoPurchase Price $625,000- First Mortgage -$468,750- Second Mortgage -$0= Downpayment $156,250+ Buying Costs $7,500+ Initial Improvements $0= Initial Cash Invested $163,750Total Number of Units 6Cost per Unit $104,167Average Monthly Rent per Unit $1,175

Mortgages First SecondLoan-To-Cost Ratio 75% 0%Loan-To-Value Ratio 75% 0%Loan Amount $468,750 $0Loan Type AmortizingTerm 25 YearsInterest Rate 5.25%Payment $2,808.97 $0.00

Financial Metrics (Year 1)Annual Gross Rent Multiplier 7.4Operating Expense Ratio 21.3%Debt Coverage Ratio 1.88Cap Rate (Purchase Price) 10.1%Cash on Cash Return 18.0%

AssumptionsAppreciation Rate 3.0%Vacancy Rate 5.0%Income Inflation Rate 3.0%Expense Inflation Rate 3.0%LTV for Refinance 70.0%Selling Costs $43,750

Income Monthly AnnualGross Rent $7,048 $84,576Vacancy Loss -$352 -$4,229Operating Income $6,696 $80,347

Expenses (% of Income) Monthly AnnualCleaning & Maintenance (2%) -$167 -$2,009Insurance (6%) -$386 -$4,634Taxes (11%) -$721 -$8,657Water/Sewer (2%) -$150 -$1,800Operating Expenses (21%) -$1,425 -$17,100

Net Performance Monthly AnnualNet Operating Income $5,271 $63,248- Mortgage Payments -$2,809 -$33,708- Year 1 Improvements -$0 -$0= Cash Flow $2,462 $29,540


Buy and Hold Projection6 Family Cash Cow146 Inslee PlaceElizabeth, New Jersey 07206

Income Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Gross Rent $84,576 $87,113 $89,727 $95,191 $110,352 $148,305 $199,309Vacancy Loss -$4,229 -$4,356 -$4,486 -$4,760 -$5,518 -$7,415 -$9,965Operating Income $80,347 $82,758 $85,240 $90,431 $104,835 $140,889 $189,343

Expenses Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Cleaning & Maintenance -$2,009 -$2,069 -$2,131 -$2,261 -$2,621 -$3,522 -$4,734Insurance -$4,634 -$4,773 -$4,916 -$5,216 -$6,046 -$8,126 -$10,920Taxes -$8,657 -$8,917 -$9,184 -$9,744 -$11,295 -$15,180 -$20,401Water/Sewer -$1,800 -$1,854 -$1,910 -$2,026 -$2,349 -$3,156 -$4,242Operating Expenses -$17,100 -$17,613 -$18,141 -$19,246 -$22,311 -$29,984 -$40,297

Income Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Net Operating Income $63,248 $65,145 $67,099 $71,186 $82,524 $110,905 $149,047- Mortgage Payments -$33,708 -$33,708 -$33,708 -$33,708 -$33,708 -$33,708 -$0- Improvements -$0 -$0 -$0 -$0 -$0 -$0 -$0= Cash Flow $29,540 $31,437 $33,392 $37,478 $48,816 $77,197 $149,047Cap Rate (Purchase Price) 10.1% 10.4% 10.7% 11.4% 13.2% 17.7% 23.8%Cap Rate (Market Value) 9.8% 9.8% 9.8% 9.8% 9.8% 9.8% 9.8%Cash on Cash Return 18.0% 19.2% 20.4% 22.9% 29.8% 47.1% 91.0%Return on Equity 16.0% 14.7% 13.7% 12.2% 10.0% 7.9% 9.8%

Loan Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Market Value $643,750 $663,062 $682,954 $724,546 $839,948 $1,128,820 $1,517,039- Loan Balance -$459,430 -$449,608 -$439,258 -$416,858 -$349,429 -$147,951 -$0= Equity $184,320 $213,455 $243,696 $307,688 $490,519 $980,868 $1,517,039Loan-to-Value Ratio 71.4% 67.8% 64.3% 57.5% 41.6% 13.1% 0.0%Potential Cash-Out Refi -$8,805 $14,536 $38,810 $90,324 $238,535 $642,222 $1,061,927

Sale Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Equity $184,320 $213,455 $243,696 $307,688 $490,519 $980,868 $1,517,039- Selling Costs -$45,062 -$46,414 -$47,807 -$50,718 -$58,796 -$79,017 -$106,193= Proceeds After Sale $139,258 $167,040 $195,890 $256,970 $431,723 $901,851 $1,410,846+ Cumulative Cash Flow $29,540 $60,977 $94,369 $167,251 $387,986 $1,025,332 $2,166,336- Initial Cash Invested -$163,750 -$163,750 -$163,750 -$163,750 -$163,750 -$163,750 -$163,750= Net Profit $5,048 $64,267 $126,508 $260,471 $655,958 $1,763,432 $3,413,432Internal Rate of Return 3.1% 19.5% 24.2% 26.6% 26.1% 24.4% 23.9%Return on Investment 3% 39% 77% 159% 401% 1,077% 2,085%


Graphs6 Family Cash Cow146 Inslee PlaceElizabeth, New Jersey 07206

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Rent Roll6 Family Cash Cow146 Inslee PlaceElizabeth, New Jersey 07206

Unit Description Square Feet Units of This Type Rent (Per Unit)Unit #1 0 1 $1,048 Per Month

Unit #2 0 1 $1,200 Per Month





Totals for Year 1Total Number of Units 6Total Area (Sum of Units) 0 Square FeetTotal Rent (Sum of Units) $7,048 Per Month, $84,576 Per Year


Photos6 Family Cash Cow146 Inslee PlaceElizabeth, New Jersey 07206


6 family cash cow · 6 family cash cow 146 inslee place elizabeth, new jersey 07206 purchase info...

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