6 APARTMENTS LARGE 2 & 3 BEDROOMS

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1 6 APARTMENTS LARGE 2 & 3 BEDROOMS R O B 25-30% RENTAL UPSIDE GREAT CONDITION N X Presented Exclusively By OMORRISON PROPERTIES

2 SOUNDVIEW AREA 0 VIOLATIONS 100% COLLECTIONS LOW RENTS IMMEDIATE UPSIDE MANY UPGRADES GAS HEAT 4 TWO BEDROOMS 2 THREE BEDROOMS BRONX NY PARKING SPACES $1,175,000

3 INVESTMENT OVERVIEW For sale in the Soundview section of the Bronx is a large 6 family with tremendous upside. The building contains all 2 & 3 bedroom apartments and is in great condition. The building is located on a very nice and quiet block. With an investment of $470k an investor can expect an initial return of $24,038 or 5.11%. Quickly increase this return to 6.41% within a few months. All the tenants are paying a preferential rent for their large apartments. All their leases expire between July & October. Their legal rents are also below market. OPPORTUNITIES Opportunity to increase the annual rent roll by at least $6,400 before November 2017 by giving the tenants a new lease at the legal amount. Cash return can increase to 6.41% before year end. Convert 2 of the two bedroom apartments into a three bedroom apartment. Install a laundry + storage space for the tenants in the large open basement. An architect says this can be done. Generate an additional $ /month or $7,200 $9,600/year. RENTS Average 2 Bedroom at Noble Ave: $1,260 2 Bedroom Market Rent: $1,700 - $1,800 Average 3 Bedroom at Noble Ave: $1,839 3 Bedroom Market Rent: $1,900 2,000 Section 8 will also pay $1,693 for a 2 bedroom & $2,177 for a 3 bedroom

4 NOTES All boxed apartments. The landlord is very hands on when it comes to managing the building. The landlord charges the tenants a low preferential rent because they are always on time with their rent and they do not cause the landlord any problems. 3 of the 6 tenants are on a program. Working tenants. Seller has owned the building since HPD & DOB violations. Walk to train or bus. BUILDING IS BEING SOLD AS IS ABSOLUTELY NO MORTGAGE CONTINGENCY ABSOLUTELY NO SHOWINGS WITHOUT AN INITIAL VERBAL OFFER

5 BUILDING DESCRIPTION BUILT SIZE 22.5 x 84 LOT SIZE x 100 STORIES 3 GROSS SQ FT 6,264 AIR RIGHTS 945 UNITS 6 APARTMENTS + 3 PARKING SPACES YEAR BUILT 1928 ZONING R6 LAYOUT 4 (4 ROOMS) 2 (5 ROOMS) [26 TOTAL ROOMS] FEATURES NEW GAS BOILER TWO NEW GAS WATER HEATERS NEW ELECTRIC SOLID ROOF (NO LEAKS) BRICKS POINTED APARTMENTS RENOVATED ALL NEW WINDOWS NEW WINDOW SILLS LOCKED FRONT DOOR HALLWAYS PAINTED LARGE OPEN BASEMENT WORKING INTERCOM CAMERA SYSTEM NICE SIZED APARTMENTS

6 FINANCIALS PURCHASE PRICE $ 1,175,000 DOWN PAYMENT (40%) $ 470,000 LOAN (60%) $ 705,000 INTEREST RATE 3.75% AMORTIZATION (YEARS) 30 MONTHLY/ANNUAL MORTGAGE PAYMENT $3,265 / $39,180 MONTHLY/ANNUAL CASH FLOW $2,003 / $24,038 DEBT COVERAGE RATIO 1.61 RETURN ON CASH INVESTED 5.11% INCOME GROSS RESIDENTIAL $ 104,635 PARKING $ 1,860 TOTAL GROSS $ 106,495 VACANCY (5%) $ (5,325) ADJUSTED GROSS INCOME $ 101,170 EXPENSES TAXES $ 17,266 FUEL $ 6,785 ELECTRIC $ 981 REPAIRS $ 2,700 INSURANCE $ 3,835 WATER/SEWER $ 6,385 SUPER $ - GRM 11.03x CAP RATE 5.38 % PRICE/UNIT $ 195,833 RENT/ROOM $ 335 PRICE/SQ FT $ 188 RENT/UNIT $ 1,453 EXPENSE/ ADJ INCOME 38% By giving tenants a new lease this year, the income will increase by $6,409 to $112,904. GRM will decrease to 10.41x The Cap Rate will increase to 5.90% Cash Flow will increase to $30,127 Cash Return will increase to 6.41% TOTAL EXPENSES $ (37,952) NOI $ 63,218 Super pays a reduced rent. No direct compensation.

7 Let Us Do Business The Right Way! OMORRISON PROPERTIES Ovan A. Morrison The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. All zoning, buildable footages and uses must be independently verified. Vacancy factors used herein are an arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of this investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket, and other factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME, AND ALL OTHER INFORMATION HEREIN.