Based on the financial data for 755 C Street, here is a comprehensive
analysis of the property's performance and a projected payback
schedule.Financial Performance Analysis.
The property demonstrates strong fundamental health, characterized
by a low Operating Expense Ratio (OER) of approximately 22.5%.
This indicates that the majority of rental income is being retained
as profit rather than being consumed by overhead.
Net Operating Income (NOI): $15,718.29.Capitalization Rate: 6.31%
based on the $249,000 asking price.
Cash-on-Cash Return: 15.52%, assuming the $50,000 down payment
and 4% interest terms provided in the sales information.
Projected Payback Schedule
This schedule calculates how long it will take to recover the
initial $50,000 cash investment based on the 2025 Annual Cash
Flow of $7,758.29 ($15,718.29 NOI minus $7,960.00 interest expense).
|
Year
|
Annual Cash Flow
|
Cumulative Cash Recovered
|
Remaining Principal
|
| |
|
|
|
| Year 1 |
$7,758.29
|
$7,758.29
|
$42,241.71
|
| Year 2 |
$7,758.29
|
$15,516.58
|
$46,549.74
|
| Year 3 |
$7,758.29
|
$23,274.87
|
$26,725.13
|
| Year 4 |
$7,758.29
|
$31,033.16
|
$18,966.84
|
| Year 5 |
$7,758.29
|
$38,791.45
|
$11,208.55
|
Estimated Break-Even Point: 6.45 Years.
Investment Considerations
Maintenance Front-Loading: The 2025 expenses include $1,700 for
a new water heater and shower faucet. These capital improvements
suggest that Year 1 and Year 2 maintenance costs could potentially
be lower, accelerating the payback period.
Balloon Payment Risk: The "60 Month Balloon Payment" note implies
that the loan must be refinanced or paid in full by Year 5. At
that point, you will have recovered roughly $38,791 of your $50,000
investment.
Equity Growth: This analysis only accounts for cash flow. It
does not include the additional "profit" gained through property
appreciation or the small amount of principal pay-down (if applicable
under the interest terms).
Mineral County Demographics
