Property Report 1434 NW 92. Presented by:

Transcription

1 Property Report 1434 NW 92 Presented by: Jeff Straka Berkshire Hathaway-Commercial N. May Avenue Edmond, OK Office: Mobile: (405) This is a pro forma based upon the information the seller has given Listing Agent. Broker makes no warranties or guarantees. It is recommended buyer perform their own due diligence Real Estate Tools 1

2 Overview Purchase Info Square Feet (4 Units) 3,840 Purchase Price $190,000 Initial Cash Invested $51,300 Income Analysis Monthly Annual Net Operating Income $1,817 $21,809 Cash Flow $869 $10,432 Financial Metrics Cap Rate (Purchase Price) 11.5% Cash on Cash Return (Year 1) 20.3% Internal Rate of Return (Year 10) 27.3% Sale Price (Year 10) $255, Real Estate Tools 2

3 Purchase Analysis Purchase Info Purchase Price $190,000 - First Mortgage -$142,500 - Second Mortgage -$0 = Downpayment $47,500 + Buying Costs $3,800 + Initial Improvements $0 = Initial Cash Invested $51,300 Square Feet (4 Units) 3,840 Cost per Square Foot $49 Monthly Rent per Square Foot $0.62 Cost per Unit $47,500 Average Monthly Rent per Unit $600 Mortgages First Second Loan-To-Cost Ratio 75% 0% Loan-To-Value Ratio 75% 0% Loan Amount $142,500 $0 Loan Type Amortizing Term 30 Years Interest Rate 7% Payment $ $0.00 Income Monthly Annual Gross Rent $2,400 $28,800 Vacancy Loss -$192 -$2,304 Operating Income $2,208 $26,496 Expenses (% of Income) Monthly Annual Cleaning & Maintenance (2%) -$50 -$600 Insurance (4%) -$79 -$950 Taxes (6%) -$141 -$1,697 Utilities (5%) -$120 -$1,440 Operating Expenses (18%) -$391 -$4,687 Net Performance Monthly Annual Net Operating Income $1,817 $21,809 - Mortgage Payments -$948 -$11,377 - Year 1 Improvements -$0 -$0 = Cash Flow $869 $10,432 Financial Metrics (Year 1) Annual Gross Rent Multiplier 6.6 Operating Expense Ratio 17.7% Debt Coverage Ratio 1.92 Cap Rate (Purchase Price) 11.5% Cash on Cash Return 20.3% Assumptions Appreciation Rate 3.0% Vacancy Rate 8.0% Income Inflation Rate 3.0% Expense Inflation Rate 3.0% LTV for Refinance 70.0% Selling Costs $13, 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 $28,800 $29,664 $30,554 $32,415 $37,577 $50,501 $67,869 Vacancy Loss -$2,304 -$2,373 -$2,444 -$2,593 -$3,006 -$4,040 -$5,430 Operating Income $26,496 $27,291 $28,110 $29,821 $34,571 $46,461 $62,440 Expenses Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Cleaning & Maintenance -$600 -$618 -$637 -$675 -$783 -$1,052 -$1,414 Insurance -$950 -$978 -$1,008 -$1,069 -$1,240 -$1,666 -$2,239 Taxes -$1,697 -$1,748 -$1,800 -$1,910 -$2,214 -$2,976 -$3,999 Utilities -$1,440 -$1,483 -$1,528 -$1,621 -$1,879 -$2,525 -$3,393 Operating Expenses -$4,687 -$4,828 -$4,972 -$5,275 -$6,115 -$8,219 -$11,045 Income Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Net Operating Income $21,809 $22,463 $23,137 $24,546 $28,456 $38,242 $51,394 - Mortgage Payments -$11,377 -$11,377 -$11,377 -$11,377 -$11,377 -$11,377 -$11,372 - Improvements -$0 -$0 -$0 -$0 -$0 -$0 -$0 = Cash Flow $10,432 $11,087 $11,760 $13,170 $17,079 $26,865 $40,023 Cap Rate (Purchase Price) 11.5% 11.8% 12.2% 12.9% 15.0% 20.1% 27.0% Cap Rate (Market Value) 11.1% 11.1% 11.1% 11.1% 11.1% 11.1% 11.1% Cash on Cash Return 20.3% 21.6% 22.9% 25.7% 33.3% 52.4% 78.0% Return on Equity 19.1% 17.9% 16.9% 15.3% 12.8% 10.3% 8.7% Loan Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Market Value $195,700 $201,571 $207,618 $220,262 $255,344 $343,161 $461,180 - Loan Balance -$141,052 -$139,500 -$137,836 -$134,137 -$122,282 -$81,651 -$0 = Equity $54,648 $62,071 $69,782 $86,125 $133,062 $261,511 $461,180 Loan-to-Value Ratio 72.1% 69.2% 66.4% 60.9% 47.9% 23.8% 0.0% Potential Cash-Out Refi -$4,062 $1,600 $7,497 $20,046 $56,459 $158,562 $322,826 Sale Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Equity $54,648 $62,071 $69,782 $86,125 $133,062 $261,511 $461,180 - Selling Costs -$13,699 -$14,110 -$14,533 -$15,418 -$17,874 -$24,021 -$32,283 = Proceeds After Sale $40,949 $47,961 $55,249 $70,706 $115,188 $237,489 $428,897 + Cumulative Cash Flow $10,432 $21,519 $33,279 $58,903 $136,249 $358,482 $696,276 - Initial Cash Invested -$51,300 -$51,300 -$51,300 -$51,300 -$51,300 -$51,300 -$51,300 = Net Profit $81 $18,180 $37,228 $78,310 $200,137 $544,671 $1,073,873 Internal Rate of Return 0.2% 17.9% 23.5% 26.8% 27.3% 26.3% 26.0% Return on Investment 0% 35% 73% 153% 390% 1,062% 2,093% Real Estate Tools 4

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

6 Photos Quadraplex For Sale in NW Oklahoma City Real Estate Tools 6

7 Photos Real Estate Tools 7