The Village at Centre Point 20-Plex 3547 N Eagle Road Meridian, ID 83646

Transcription

1 Property Report The Village at Centre Point 20-Plex Presented by: RE/MAX Equity/Silvercreek Realty 295 W Center St Suite A/1099 S Wells St #200 Provo/Meridian, UT/ID 84601/83642 Mobile: FIG Disclaimer: * No investments are guaranteed to result in profits. Net operating income, cap rates, and internal rates of return are subject to fluctuation and may experience a wide range of change, including the potential for operating losses. Factors affecting investment returns include, without limitation, changes in interest rates, tenant vacancies and defaults, property management expenses, repair and maintenance costs, HOA expenses, litigation, insurance rates, and relative strength and weakness in the local and regional economy. Past performance is not a guarantee of future returns. FIG does not provide tax or legal advice, and none of the 1

2 Overview The Village at Centre Point 20-Plex Purchase Info Square Feet (20 Units) 36,000 Initial Market Value $3,875,000 Purchase Price $3,299,500 Initial Cash Invested $959,875 Income Analysis Monthly Annual Net Operating Income $18,105 $217,258 Cash Flow $4,440 $53,278 Financial Metrics Cap Rate (Purchase Price) 6.6% Cash on Cash Return (Year 1) 5.6% Internal Rate of Return (Year 10) 15.5% Sale Price (Year 10) $4,960,328 2

3 Purchase Analysis Purchase Info Initial Market Value $3,875,000 Purchase Price $3,299,500 - First Mortgage -$2,474,625 - Second Mortgage -$0 = Downpayment $824,875 + Buying Costs $135,000 + Initial Improvements $0 = Initial Cash Invested $959,875 Square Feet (20 Units) 36,000 Cost per Square Foot $92 Monthly Rent per Square Foot $0.74 Cost per Unit $164,975 Average Monthly Rent per Unit $1,325 Mortgages First Second Loan-To-Cost Ratio 75% 0% Loan-To-Value Ratio 63.86% 0% Loan Amount $2,474,625 $0 Loan Type Amortizing Term 30 Years Interest Rate 5.25% Payment $13, $0.00 Income Monthly Annual Gross Rent $26,500 $318,000 Vacancy Loss -$795 -$9,540 Technology Package $1,500 $18,000 Operating Income $27,205 $326,460 Expenses (% of Income) Monthly Annual Cleaning & Maintenance (1%) -$375 -$4,500 Insurance (1%) -$271 -$3,250 Management Fees (7%) -$1,904 -$22,852 Taxes (12%) -$3,150 -$37,800 Association Fees (12%) -$3,400 -$40,800 Operating Expenses (33%) -$9,100 -$109,202 Net Performance Monthly Annual Net Operating Income $18,105 $217,258 - Mortgage Payments -$13,665 -$163,980 - Year 1 Improvements -$0 -$0 = Cash Flow $4,440 $53,278 Financial Metrics (Year 1) Annual Gross Rent Multiplier 10.4 Operating Expense Ratio 33.5% Debt Coverage Ratio 1.32 Cap Rate (Purchase Price) 6.6% Cash on Cash Return 5.6% Assumptions Appreciation Rate 2.5% Vacancy Rate 3.0% Income Inflation Rate 2.5% Expense Inflation Rate 3.0% LTV for Refinance 70.0% Selling Costs $271,250 3

4 Buy and Hold Projection Income Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Gross Rent $318,000 $325,950 $334,099 $351,012 $397,138 $508,371 $650,758 Vacancy Loss -$9,540 -$9,778 -$10,023 -$10,530 -$11,914 -$15,251 -$19,523 Technology Package $18,000 $18,450 $18,911 $19,869 $22,480 $28,776 $36,835 Operating Income $326,460 $334,622 $342,987 $360,351 $407,704 $521,895 $668,070 Expenses Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Cleaning & Maintenance -$4,500 -$4,635 -$4,774 -$5,065 -$5,871 -$7,891 -$10,605 Insurance -$3,250 -$3,348 -$3,448 -$3,658 -$4,241 -$5,699 -$7,659 Management Fees -$22,852 -$23,424 -$24,009 -$25,225 -$28,539 -$36,533 -$46,765 Taxes -$37,800 -$38,934 -$40,102 -$42,544 -$49,320 -$66,283 -$89,078 Association Fees -$40,800 -$42,024 -$43,285 -$45,921 -$53,235 -$71,543 -$96,148 Operating Expenses -$109,202 -$112,364 -$115,618 -$122,412 -$141,206 -$187,948 -$250,254 Income Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Net Operating Income $217,258 $222,257 $227,369 $237,939 $266,497 $333,947 $417,816 - Mortgage Payments -$163,980 -$163,980 -$163,980 -$163,980 -$163,980 -$163,980 -$163,980 - Improvements -$0 -$0 -$0 -$0 -$0 -$0 -$0 = Cash Flow $53,278 $58,278 $63,390 $73,959 $102,518 $169,968 $253,836 Cap Rate (Purchase Price) 6.6% 6.7% 6.9% 7.2% 8.1% 10.1% 12.7% Cap Rate (Market Value) 5.5% 5.5% 5.4% 5.4% 5.4% 5.3% 5.1% Cash on Cash Return 5.6% 6.1% 6.6% 7.7% 10.7% 17.7% 26.4% Return on Equity 3.5% 3.5% 3.5% 3.5% 3.5% 3.3% 3.1% Loan Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Market Value $3,971,875 $4,071,172 $4,172,951 $4,384,207 $4,960,328 $6,349,639 $8,128,074 - Loan Balance -$2,439,731 -$2,402,961 -$2,364,214 -$2,280,354 -$2,027,913 -$1,273,628 -$1 = Equity $1,532,144 $1,668,211 $1,808,738 $2,103,852 $2,932,415 $5,076,010 $8,128,073 Loan-to-Value Ratio 61.4% 59.0% 56.7% 52.0% 40.9% 20.1% 0.0% Potential Cash-Out Refi $340,581 $446,859 $556,852 $788,590 $1,444,317 $3,171,119 $5,689,651 Sale Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Equity $1,532,144 $1,668,211 $1,808,738 $2,103,852 $2,932,415 $5,076,010 $8,128,073 - Selling Costs -$278,031 -$284,982 -$292,107 -$306,894 -$347,223 -$444,475 -$568,965 = Proceeds After Sale $1,254,112 $1,383,228 $1,516,631 $1,796,958 $2,585,192 $4,631,536 $7,559,108 + Cumulative Cash Flow $53,278 $111,556 $174,946 $317,520 $771,732 $2,155,708 $4,301,677 - Initial Cash Invested -$959,875 -$959,875 -$959,875 -$959,875 -$959,875 -$959,875 -$959,875 = Net Profit $347,515 $534,910 $731,702 $1,154,603 $2,397,049 $5,827,368 $10,900,910 Internal Rate of Return 36.2% 25.4% 21.7% 18.5% 15.5% 13.4% 12.4% Return on Investment 36% 56% 76% 120% 250% 607% 1,136% 4

5 Graphs Monthly Cash Flow $20,000 $15,000 $10,000 $5,000 $ Year Loan Balance + Equity = Market Value $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $ Year Internal Rate of Return (IRR) 35% 30% 25% 20% 15% 10% 5% 0% Year

6 Rent Roll Unit Description Square Feet Units of This Type Rent (Per Unit) 3 Story 1 Car Garage Unit 1, $1,325 Per Month 3 Story 1 Car Garage Units 1, $1,325 Per Month Totals for Year 1 Total Number of Units 20 Total Area (Sum of Units) 36,000 Square Feet Total Rent (Sum of Units) $26,500 Per Month, $318,000 Per Year 6

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