9311 W WILLIAMS ST Tolleson AZ

July 6, 2011

Dani BeitOr

Arizona, Blog, General Investing, Investment Properties, Phoenix, Single Family, US Real Estate
Real Estate Analysis Property Analysis
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Disclaimer
This tool is provided “As Is”. All information is believed to be accurate, but not guaranteed. It is intended for the purpose of illustrative projections. The information provided is not intended to replace or substitute any legal, accounting, investment, real estate, tax or other professional advice, consultation or service. The author of this tool is not responsible nor liable for any damages arising from the use of the tool.
Executive Summary
Property Description
Name  9311 W WILLIAMS ST Tolleson? AZ 
Address  9311 W WILLIAMS ST, Tolleson 
Type  Singlefamily 
Size  2224 SF 
Rooms  3 bed. + 3 bath. 
Purchase Price  $ 94,900 
Rent  $ 950/month 
Financing Overview
Purchase Price  $ 94,900 
Down Payment  $ 18,980 
Mortgage (30yr @ 5.50%)  $ 75,920 
LoantoValue (LTV)  80.00 % 
Closing Costs  $ 2,500 
Total Aquisition Cost  $ 98,900 
Income, Expenses and Cash Flow (Year 1)
Gross Operating Income (GOI)  $ 10,830 
Total Expenses  $ 3,999 
Net Operating Income (NOI)  $ 6,831 
Annual Debt Service  $ 5,173 
Rehabilitaion  $ 0 
Cash Flow Before Taxes (CFBT)  $ 1,658 
Income Tax Liability  $ 0 
Cash Flow After Taxes (CFAT)  $ 1,658 
Financial Analysis
Holding period of 15 years and discount rate of 10% were used for calculation of NPV and IRR. The rest of the financial measures are for the 1st year only and therefore doesn't provide such exact information.
Net Present Value (NPV)  $ 41,446 
Internal Rate of Return (IRR)  11.91 % 
Cash on Cash Return  7.21 % 
Return on Equity (ROE)  7.21 % 
Capitalization Rate  7.20 % 
Gross Rent Multiplier (GRM)  8.32 
Debtcoverage Ratio (DCR)  2.20 
Operating Expense Ratio (OER)  36.93 % 
Resale Analysis
Sale Price in year 15 (Appreciation:1%)  $ 110,176 
Sale Proceeds (Before Tax)  $ 49,707 
Optimal Holding Period (based on NPV)  30 years 
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