Dania Beach Multi Family Turn key apartment bulling with full management services in place. Completely renovated property with impact windows and newer roof. 8.07% Cash on Cash return with 30% down payment. Actual NOI of $42,843 provides an investor a very strong 7.29% Capitalization rate with room to increase 5 section 8 tenants provide steady government funded income Sponsored By: JOHN DEMARCO, ACP 954-678-8733 JohnDeMarco@Remax.net Each office is independently owned and operated. RE/MAX 5 STAR REALTY 4151 Hollywood Blvd Hollywood, FL 33020 (954) 361-0000 Each office independently owned and operated
REAL ESTATE INVESTMENT DETAILS Analysis Analysis Date June 2017 Property Property Property Address Year Built 1974 Dania Beach Multi Family 126 NW 8th Ave Dania Beach, FL 33004 Purchase Information Property Type MultiFamily Purchase Price $588,000 Units 5 Total Rentable Sq. Ft. 3,760 Financial Information Down Payment $187,500 Closing Costs $4,500 Loans Type Debt Term Amortization Rate Payment LO Costs Fixed $437,500 25 years 25 years 3.75% $2,249 $4,375 Income & Expenses Gross Operating Income $63,870 Monthly GOI $5,323 Total Annual Expenses ($21,027) Monthly Expenses ($1,752) Contact Information John DeMarco, ACP 954-678-8733 JohnDeMarco@Remax.net P. 2
EXECUTIVE SUMMARY ACQUISITION COSTS Purchase Price, Points and Closing Costs $596,875 Investment - Cash $196,375 First Loan $437,500 INVESTMENT INFORMATION Purchase Price $588,000 Price per Unit $117,600 Price per Sq. Ft. $156.38 Income per Unit $12,890 Expenses per Unit ($4,205) INCOME, EXPENSES & CASH FLOW Gross Scheduled Income $64,452 Total Vacancy and Credits ($582) Operating Expenses ($21,027) Net Operating Income $42,843 Debt Service ($26,992) Cash Flow Before Taxes $15,851 FINANCIAL INDICATORS Cash on Cash Return Before Taxes 8.07% Debt Coverage Ratio 1.59 Capitalization Rate 7.29% Gross Rent Multiplier 9.12 Gross Income / Square Feet $17.14 Gross Expenses / Square Feet ($5.59) Operating Expense Ratio 32.92% P. 3
PROPERTY DESCRIPTION Great 5 unit multi-family building located in Dania beach Florida. This property is 100% leased with 5 section 8 tenants and full property management services in place. The current property manager will stay on making this investment ideal for any absentee owner or local investor. Section 8 rentals are paid timely by the government resulting no late payments. This property is located right across the street from CW Thomas Park. The units consist of 4, 2 bedroom 1 bath units and 1, 3 bedroom 1 bath unit. This property has been recently renovated, including new impact windows, updated kitchens and bathrooms, and new appliances. The property is in overall great condition. The property is currently grossing $64,452 per year, netting $42,843 per year, providing an investor a 7.29% capitalization rate at full asking price. Great investment opportunity to purchase a turn key operating apartment building in South Florida. For more information please contact the listing agent. Please remember to not disturb the existing tenants, all showings are by appointment only. P. 4
PROPERTY PHOTOS 93334-PP-1.jpg 93334-PP-2.jpg 93334-PP-3.jpg 93334-PP-4.jpg 93334-PP-5.jpg 93334-PP-6.jpg P. 5
MAPS AND AERIALS and should be personally verified through personal inspection by and/or with the appropriate professionals. P. 6
UNIT MIX REPORT UNIT MIXES Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 1 Residential 3/1 960 $1,400 $1,400 $1,550 $1,550 1 Residential 2/1 700 $1,025 $1,025 $1,150 $1,150 1 Residential 2/1 700 $1,000 $1,000 $1,150 $1,150 1 Residential 2/1 700 $946 $946 $1,150 $1,150 1 Residential 2/1 700 $1,000 $1,000 $1,150 $1,150 5 3,760 $5,371 $6,150 UNIT MIX UNIT MIX SQUARE FEET Residential 3/1 Residential 3/1 UNIT MIX INCOME UNIT MIX MARKET INCOME Residential 3/1 Residential 3/1 P. 7
ANNUAL PROPERTY OPERATING DATA Description Year 1 Year 2 Year 3 Year 4 Year 5 Rental Income $64,452 $67,030 $69,711 $72,500 $75,400 GROSS SCHEDULED INCOME $64,452 $67,030 $69,711 $72,500 $75,400 Turnover Vacancy ($582) ($605) ($629) ($655) ($681) GROSS OPERATING INCOME $63,870 $66,425 $69,082 $71,845 $74,719 Expenses Building Insurance ($3,500) ($3,535) ($3,570) ($3,606) ($3,642) Maintenance ($3,600) ($3,636) ($3,672) ($3,709) ($3,746) Management Fees ($2,000) ($2,000) ($2,000) ($2,000) ($2,000) Taxes - Real Estate ($8,691) ($8,865) ($9,042) ($9,223) ($9,407) Utility - Water ($3,236) ($3,268) ($3,301) ($3,334) ($3,367) TOTAL OPERATING EXPENSES ($21,027) ($21,304) ($21,586) ($21,872) ($22,163) NET OPERATING INCOME $42,843 $45,121 $47,496 $49,973 $52,556 and should be personally verified through personal inspection by and/or with the appropriate professionals. P. 8
FINANCIAL INDICATORS Description Year 1 Year 2 Year 3 Year 4 Year 5 Gross Rent Multiplier 9.70 9.32 8.97 8.62 8.29 Capitalization Rate 7.29% 7.67% 8.08% 8.50% 8.94% Cash On Cash Return b/t 8.07% 9.23% 10.44% 11.70% 13.02% Cash On Cash Return a/t 8.07% 9.23% 10.44% 11.70% 13.02% Debt Coverage Ratio 1.59 1.67 1.76 1.85 1.95 Gross Income per Sq. Ft. $17.14 $17.83 $18.54 $19.28 $20.05 Expenses per Sq. Ft. ($5.59) ($5.67) ($5.74) ($5.82) ($5.89) Net Income Multiplier 14.59 13.85 13.16 12.51 11.89 Operating Expense Ratio 32.92% 32.07% 31.25% 30.44% 29.66% Loan To Value Ratio 68.28% 66.49% 64.63% 62.70% 60.70% Footnotes: b/t = before taxes; a/t = after taxes and should be personally verified through personal inspection by and/or with the appropriate professionals. P. 9
CASH FLOW ANALYSIS Description Year 1 Year 2 Year 3 Year 4 Year 5 GROSS SCHEDULED INCOME $64,452 $67,030 $69,711 $72,500 $75,400 Turnover Vacancy ($582) ($605) ($629) ($655) ($681) Total Operating Expenses ($21,027) ($21,304) ($21,586) ($21,872) ($22,163) NET OPERATING INCOME $42,843 $45,121 $47,496 $49,973 $52,556 Loan Payment ($26,992) ($26,992) ($26,992) ($26,992) ($26,992) NET CASH FLOW (b/t) $15,851 $18,129 $20,504 $22,981 $25,564 Cash On Cash Return b/t 8.07% 9.23% 10.44% 11.70% 13.02% Footnotes: b/t = before taxes;a/t = after taxes and should be personally verified through personal inspection by and/or with the appropriate professionals. P. 10
EQUITY VS. DEBT $430,000 $387,000 $344,000 $301,000 $258,000 $215,000 $172,000 $129,000 $86,000 $43,000 Year 1 2 3 4 5 Legend Equity Loan Principal Balance and should be personally verified through personal inspection by and/or with the appropriate professionals. P. 11
OPERATING INCOME ANALYSIS $75,000 $67,500 $60,000 $52,500 $45,000 $37,500 $30,000 $22,500 $15,000 $7,500 Year 1 2 3 4 5 Legend GROSS OPERATING INCOME NET OPERATING INCOME NET CASH FLOW (b/t) and should be personally verified through personal inspection by and/or with the appropriate professionals. P. 12
CUMULATIVE WEALTH ANALYSIS $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 Year 1 2 3 4 5 Legend Equity (loan reduction) Equity (appreciation) CASH FLOW (a/t) and should be personally verified through personal inspection by and/or with the appropriate professionals. P. 13
PRO FORMA SUMMARY UNIT MIX & ANNUAL SCHEDULED INCOME Type Units Actual Total Market Total Residential 3/1 1 $16,800 $16,800 $18,600 $18,600 Residential 2/1 1 $12,300 $12,300 $13,800 $13,800 Residential 2/1 1 $12,000 $12,000 $13,800 $13,800 Residential 2/1 1 $11,352 $11,352 $13,800 $13,800 Residential 2/1 1 $12,000 $12,000 $13,800 $13,800 TOTALS 5 $64,452 $73,800 INVESTMENT SUMMARY Price: $588,000 Year Built: 1974 Units: 5 Price/Unit: $117,600 RSF: 3,760 Price/RSF: $156.38 Lot Size: 10,841 sf Floors: 1 ANNUALIZED INCOME Actual Market Gross Potential Rent $64,452 $73,800 Less: Vacancy ($582) $0 Effective Gross Income $63,870 $73,800 Less: Expenses ($21,027) ($21,027) Net Operating Income $42,843 $52,773 Debt Service ($26,992) ($26,992) Net Cash Flow after Debt Service $15,851 $25,781 Principal Reduction $10,769 $10,769 Total Return $26,621 $36,551 APN: 5042 34 01 Cap Rate: 7.29% Market Cap Rate: 8.98% GRM: 9.12 Market GRM: 7.97 FINANCING SUMMARY Loan Amount: $437,500 Down Payment: $187,500 Loan Type: Fixed Interest Rate: 3.75% Term: 25 years ANNUALIZED EXPENSES Actual Market Building Insurance $3,500 $3,500 Maintenance $3,600 $3,600 Management Fees $2,000 $2,000 Taxes - Real Estate $8,691 $8,691 Utility - Water $3,236 $3,236 Total Expenses $21,027 $21,027 Expenses Per RSF $5.59 $5.59 Expenses Per Unit $4,205 $4,205 Monthly Payment: $2,249 DCR: 1.59 P. 14
DEMOGRAPHICS POPULATION 1 MILE 3 MILE 5 MILE Male 5,227 (47.61 %) 38,070 (50.26 %) 123,841 (50.02 %) Female 5,752 (52.39 %) 37,681 (49.74 %) 123,728 (49.98 %) Total Population 10,979 75,751 247,569 AGE BREAKDOWN 1 MILE 3 MILE 5 MILE Ages 0-4 644 (5.87 %) 3,306 (4.36 %) 11,073 (4.47 %) Ages 5-9 764 (6.96 %) 4,320 (5.70 %) 14,194 (5.73 %) Ages 10-14 700 (6.38 %) 4,112 (5.43 %) 13,407 (5.73 %) Ages 15-19 673 (6.13 %) 3,897 (5.14 %) 12,850 (5.19 %) Ages 20-24 710 (6.47 %) 3,845 (5.08 %) 12,875 (5.20 %) Ages 25-29 697 (6.35 %) 3,817 (5.04 %) 13,125 (5.30 %) Ages 30-34 662 (6.03 %) 4,030 (5.32 %) 13,820 (5.58 %) Ages 35-39 638 (5.81 %) 4,623 (6.10 %) 15,329 (6.19 %) Ages 40-44 648 (5.90 %) 5,404 (7.13 %) 17,380 (7.02 %) Ages 45-49 688 (6.27 %) 6,094 (8.04 %) 19,137 (7.73 %) Ages 50-54 718 (6.54 %) 6,142 (8.11 %) 19,081 (7.71 %) Ages 55-59 688 (6.27 %) 5,753 (7.59 %) 17,990 (7.27 %) Ages 60-64 612 (5.57 %) 5,026 (6.63 %) 15,931 (6.43 %) Ages 65-69 522 (4.75 %) 4,230 (5.58 %) 13,481 (5.45 %) Ages 70-74 433 (3.94 %) 3,366 (4.44 %) 11,022 (4.45 %) Ages 75-79 342 (3.12 %) 2,564 (3.38 %) 8,622 (3.48 %) Ages 80-84 253 (2.30 %) 1,806 (2.38 %) 6,276 (2.54 %) Ages 85+ 587 (5.35 %) 3,416 (4.51 %) 11,976 (4.84 %) P. 15
DEMOGRAPHICS HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE Median Income $43,688 $44,401 $46,906 Less than $10,000 565 2,916 9,221 $10,000 -$14,999 358 2,198 6,303 $15,000 - $19,999 484 2,234 6,522 $20,000 -$24,999 276 1,905 6,020 $25,000 - $29,999 281 2,257 7,064 $30,000 - $34,999 239 1,766 6,477 $35,000 - $39,999 220 1,486 5,861 $40,000 - $44,999 234 1,941 5,573 $45,000 - $49,999 222 1,462 4,632 $50,000 - $59,999 377 2,729 8,958 $60,000 - $74,999 460 3,262 10,204 $75,000 - $99,999 520 3,465 10,815 $100,000 - $124,999 103 2,485 6,803 $125,000 - $149,999 55 1,193 3,742 $150,000 - $199,999 30 892 3,889 Greater than $200,000 N/A 1,355 4,522 HOUSING 1 MILE 3 MILE 5 MILE Housing Units 5,450 41,330 135,046 Occupied Units 4,457 34,642 109,235 Owner Occupied Units 1,826 17,990 60,782 Renter Occupied Units 2,631 16,652 48,453 Vacant Units 993 6,688 25,811 RACE DEMOGRAPHICS 1 MILE 3 MILE 5 MILE Population Non Hispanic White 4,325 57,878 179,198 Population Black 6,260 13,315 50,895 Population Am In/Ak Nat 2 40 468 P. 16
LOCATION MAP P. 17