Hampton 6 Unit Hampton st Scranton, Pa 18504

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1 Property Report Hampton 6 Unit Presented by: Ron J. Parasole Jr Brick ave Scranton, Pa Office: Mobile: (570) Fax: (570) Real Estate Tools 1

2 Overview Hampton 6 Unit Purchase Info Total Number of Units 6 Initial Market Value $231,000 Purchase Price $222,000 Initial Cash Invested $59,940 Income Analysis Monthly Annual Net Operating Income $2,156 $25,873 Cash Flow $1,158 $13,894 Financial Metrics Cap Rate (Purchase Price) 11.7% Cash on Cash Return (Year 1) 23.2% Internal Rate of Return (Year 10) 30.2% Sale Price (Year 10) $310,445 Great income producing property with two separate buildings on one deed next to a school in Scranton's Westside. This is a fully rented apartment with great rental history. The front building is a duplex, two three-bedroom units and in the back there is a four unit building which has three one bedrooms and one two-bedroom apartments. Here's a video of the rear bottom left one bedroom apartment. If this link is not clickable please copy and paste onto your address bar to view this video on YouTube Real Estate Tools 2

3 Purchase Analysis Purchase Info Initial Market Value $231,000 Purchase Price $222,000 - First Mortgage ($166,500) - Second Mortgage ($0) = Downpayment $55,500 + Buying Costs $4,440 + Initial Improvements $0 = Initial Cash Invested $59,940 Total Number of Units 6 Cost per Unit $37,000 Average Monthly Rent per Unit $524 Mortgages First Second Loan-To-Cost Ratio 75% 0% Loan-To-Value Ratio 72.08% 0% Loan Amount $166,500 $0 Loan Type Amortizing Term 30 Years Interest Rate 6% Payment $ $0.00 Income Monthly Annual Gross Rent $3,141 $37,692 Vacancy Loss ($31) ($377) Operating Income $3,110 $37,315 Expenses (% of Income) Monthly Annual Cleaning & Maintenance (5%) ($148) ($1,776) Insurance (3%) ($100) ($1,200) Management Fees (8%) ($249) ($2,985) Taxes (8%) ($234) ($2,806) Sewer (5%) ($142) ($1,706) Trash (3%) ($81) ($969) Operating Expenses (31%) ($954) ($11,442) Net Performance Monthly Annual Net Operating Income $2,156 $25,873 - Mortgage Payments ($998) ($11,979) - Year 1 Improvements ($0) ($0) = Cash Flow $1,158 $13,894 Financial Metrics (Year 1) Annual Gross Rent Multiplier 5.9 Operating Expense Ratio 30.7% Debt Coverage Ratio 2.16 Cap Rate (Purchase Price) 11.7% Cash on Cash Return 23.2% Assumptions Appreciation Rate 3.0% Vacancy Rate 1.0% Income Inflation Rate 3.0% Expense Inflation Rate 3.0% LTV for Refinance 70.0% Selling Costs $16, Real Estate Tools 3

4 Buy and Hold Projection Income Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Gross Rent $37,692 $38,823 $39,987 $42,423 $49,180 $66,093 $88,824 Vacancy Loss ($377) ($388) ($400) ($424) ($492) ($661) ($888) Operating Income $37,315 $38,435 $39,588 $41,998 $48,688 $65,432 $87,935 Expenses Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Cleaning & Maintenance ($1,776) ($1,829) ($1,884) ($1,999) ($2,317) ($3,114) ($4,185) Insurance ($1,200) ($1,236) ($1,273) ($1,351) ($1,566) ($2,104) ($2,828) Management Fees ($2,985) ($3,075) ($3,167) ($3,360) ($3,895) ($5,235) ($7,035) Taxes ($2,806) ($2,890) ($2,977) ($3,158) ($3,661) ($4,920) ($6,613) Sewer ($1,706) ($1,757) ($1,810) ($1,920) ($2,226) ($2,991) ($4,020) Trash ($969) ($998) ($1,028) ($1,091) ($1,264) ($1,699) ($2,284) Operating Expenses ($11,442) ($11,785) ($12,139) ($12,878) ($14,929) ($20,064) ($26,964) Income Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Net Operating Income $25,873 $26,649 $27,449 $29,120 $33,758 $45,368 $60,971 - Mortgage Payments ($11,979) ($11,979) ($11,979) ($11,979) ($11,979) ($11,979) ($11,979) - Improvements ($0) ($0) ($0) ($0) ($0) ($0) ($0) = Cash Flow $13,894 $14,670 $15,470 $17,141 $21,779 $33,389 $48,992 Cap Rate (Purchase Price) 11.7% 12.0% 12.4% 13.1% 15.2% 20.4% 27.5% Cap Rate (Market Value) 10.9% 10.9% 10.9% 10.9% 10.9% 10.9% 10.9% Cash on Cash Return 23.2% 24.5% 25.8% 28.6% 36.3% 55.7% 81.7% Return on Equity 18.9% 17.7% 16.7% 15.2% 12.7% 10.2% 8.7% Loan Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Market Value $237,930 $245,068 $252,420 $267,792 $310,445 $417,212 $560,698 - Loan Balance ($164,455) ($162,285) ($159,980) ($154,936) ($139,337) ($89,917) ($1) = Equity $73,475 $82,783 $92,440 $112,857 $171,108 $327,295 $560,696 Loan-to-Value Ratio 69.1% 66.2% 63.4% 57.9% 44.9% 21.6% 0.0% Potential Cash-Out Refi $2,096 $9,263 $16,714 $32,519 $77,974 $202,132 $392,487 Sale Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Equity $73,475 $82,783 $92,440 $112,857 $171,108 $327,295 $560,696 - Selling Costs ($16,655) ($17,155) ($17,669) ($18,745) ($21,731) ($29,205) ($39,249) = Proceeds After Sale $56,820 $65,629 $74,771 $94,111 $149,377 $298,090 $521,447 + Cumulative Cash Flow $13,894 $28,564 $44,033 $77,468 $176,814 $455,634 $871,543 - Initial Cash Invested ($59,940) ($59,940) ($59,940) ($59,940) ($59,940) ($59,940) ($59,940) = Net Profit $10,773 $34,252 $58,864 $111,639 $266,250 $693,784 $1,333,050 Internal Rate of Return 18.0% 27.9% 30.4% 31.3% 30.2% 28.7% 28.4% Return on Investment 18% 57% 98% 186% 444% 1,157% 2,224% Real Estate Tools 4

5 Graphs Monthly Cash Flow $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $ Year $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 Loan Balance + Equity = Market Value $ Year Internal Rate of Return (IRR) 30% 25% 20% 15% 10% 5% 0% Year Real Estate Tools 5

6 Rent Roll Unit Description Square Feet Units of This Type Rent (Per Unit) 1129 Front - 3 Bed 0 1 $616 Per Month 1129 Rear 1-2 Bed 0 1 $475 Per Month 1129 Rear 2-2 Bed 0 1 $475 Per Month 1131 Front - 3 Bed 0 1 $635 Per Month 1131 Rear 1-2 Bed 0 1 $440 Per Month 1131 Rear 2-3 Bed 0 1 $500 Per Month Totals for Year 1 Total Number of Units 6 Total Area (Sum of Units) 0 Square Feet Total Rent (Sum of Units) $3,141 Per Month, $37,692 Per Year Real Estate Tools 6

7 Photos Real Estate Tools 7

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