Financial Summary
• Purchase Price: $1,500,000
• Net Operating Income (NOI): $132,671.65
• Annual Debt Service: $45,508.90
• Cash Flow (Before-Tax): $87,162.75
Investment Metrics
Cap Rate 8.85
This is still strong, especially for multifamily in many markets. Typically, anything above 7–8 is attractive.
Cash-on-Cash Return – Assuming 20 down payment = $300,000:Cash-on-Cash Return=29.05
This is excellent — high CoC returns like this are uncommon in many real estate markets.
Debt Coverage Ratio (DCR)=2.92
Conclusion
At a $1.5M price point, this is a robust investment:
• 8.85 Cap Rate — solid and above average
• 29 Cash-on-Cash Return — very high
• Excellent DCR — well above lending safety thresholds. This deal remains highly favorable, with its excellent location, condition, and long-term growth potential.