Help with my numbers

[Darin A. Scavella Jr]

Hello everyone.

I am running the numbers on a m/f property and I want to know if I am doing this correct.

Here are the details:

Purchase price =$2,000,000.00

Renovations = $1,000,000

Down Payment = $600,000.00

Closing cost etc  =$400.000.00

Note* the loan is being calculated with the renovations included.

Income =$47,488.00 p/m

Expenses =$28,551.75 p/m

NOI = $18,936.25

Mortgage =$10,777.00 p/m

Cash flow =$8159.25 p/m

CoC Roi = 9.67%

Cap rate =9.46

DCR = 1.75

My questions are:

- when calculating for cash on  cash roi, is the renovation and cost of money included in this?

- cape rate is noi ÷ sale price.  So should this be 18936.25÷2,000,000?

Value =Noi÷cap rate. So should these figures be 18936÷.00946?

I know I can use the analysis calculator  BUT I want/ need to fully understand how and why I come up with figures.

Thank you all and God bless you.