TABLE OF CONTENTS Real Estate Investment Details... 2 Executive Summary... 3 Property Description... 4 Pro Forma Summary... 5 Cash Flow Analysis... 6 Loan Analysis... 7 Internal Rate of Return Analysis... 8 Unit Mix Report... 9 Rent Roll Aug 17... 10 Property Photos... 11 The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals.
REAL ESTATE INVESTMENT DETAILS Analysis Analysis Date August 2017 Property Property Property Address SFH Package KC MO 1300 E 81ST Street Kansas City, MO 64131 Purchase Information Property Type MultiFamily Purchase Price $650,000 Units 9 Total Rentable Sq. Ft. 10,450 Financial Information Down Payment $162,500 Loans Type Debt Term Amortization Rate Payment LO Costs Balloon $487,500 5 years 20 years 4.25% $3,019 Income & Expenses Gross Operating Income $86,480 Monthly GOI $7,207 Total Annual Expenses ($24,023) Monthly Expenses ($2,002) Contact Information Chuck Gray 6605250393 cgremax@yahoo.com P. 2 The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals.
EXECUTIVE SUMMARY ACQUISITION COSTS Purchase Price, Points and Closing Costs $650,000 Investment - Cash $162,500 First Loan $487,500 INVESTMENT INFORMATION Purchase Price $650,000 Price per Unit $72,222 Price per Sq. Ft. $62.20 Income per Unit $10,115 Expenses per Unit ($2,669) INCOME, EXPENSES & CASH FLOW Gross Scheduled Income $91,032 Total Vacancy and Credits ($4,552) Operating Expenses ($24,023) Net Operating Income $62,457 Debt Service ($36,225) Cash Flow Before Taxes $26,232 FINANCIAL INDICATORS Cash on Cash Return Before Taxes 16.14% Debt Coverage Ratio 1.72 Capitalization Rate 9.61% Gross Rent Multiplier 7.14 Gross Income / Square Feet $8.71 Gross Expenses / Square Feet ($2.30) Operating Expense Ratio 27.78% P. 3 The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals.
PROPERTY DESCRIPTION Single Family Homes Package. 9-properties all located south of 71st Street in Kansas City MO 100% occupancy. 7- homes in Section 8 program. 2- home market rents. Average vacant / credit loss for subject properties less than 3% over 5-year average. Section 8 tenants in waiting. 10% Cap Rate. 16% Cash on Cash. Proforma based on 7% management fee, 5% vacancy / credit loss, 10% maintenance reserve. 10,450 +/- lease-able sq. ft. Average sq. ft. per property 1,100 per. All properties located within a 15-minute radius of each other. Area market rent average for 3 bedrooms homes $800 to $1,000 per month. Renters make up 44% of the market (64131 zip code) The Kansas City metropolitan area is a 15-county metropolitan area anchored by Kansas City, Missouri, that straddles the border between the U.S. states of Missouri and Kansas. With a population of about 2,340,000, it ranks as the second largest metropolitan area with its core in Missouri (after Greater St. Louis). Alongside Kansas City, the area includes a number of other cities and suburbs, the largest being Overland Park, Kansas; Kansas City, Kansas; Olathe, Kansas; and Independence, Missouri; each over 100,000 in population. The Mid-America Regional Council (MARC) serves as the Council of Governments and the Metropolitan Planning Organization for the area. Contact Chuck Gray, Re/Max Truman Lake, 5 NE 91 RD, Clinton MO for site visits of more detail. Phone (660) 525-0393 or email cgremax@yahoo.com Or have your Broker contact me. Co-Broke welcome. P. 4 The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals.
PRO FORMA SUMMARY UNIT MIX & ANNUAL SCHEDULED INCOME Type Units Actual Total 4 bd 2 bt Sec 8 1 $11,124 $11,124 4 bd 2 bt Sec 8 1 $11,088 $11,088 3bd 1 bt Market 1 $8,400 $8,400 3bd 1.5bt Sec 8 1 $10,200 $10,200 3bd 1.5bt Sec 8 1 $10,200 $10,200 INVESTMENT SUMMARY Price: $650,000 Units: 9 Price/Unit: $72,222 3bd 1bt Sec 8 1 $9,468 $9,468 3bd 1.5bt Market 1 $9,600 $9,600 3bd 2bt Sec 8 1 $11,100 $11,100 3bd 2bt Sec 8 1 $9,852 $9,852 TOTALS 9 $91,032 RSF: 10,450 Price/RSF: $62.20 Floors: 1 Cap Rate: 9.61% GRM: 7.14 FINANCING SUMMARY Loan Amount: $487,500 Down Payment: $162,500 Loan Type: Balloon Interest Rate: 4.25% ANNUALIZED INCOME Actual Gross Potential Rent $91,032 Less: Vacancy ($4,552) Effective Gross Income $86,480 Less: Expenses ($24,023) Net Operating Income $62,457 Debt Service ($36,225) Net Cash Flow after Debt Service $26,232 Principal Reduction $15,812 Total Return $42,044 Term: 5 years Monthly Payment: $3,019 DCR: 1.72 ANNUALIZED EXPENSES Actual Accounting $650 Advertising $500 Building Insurance $2,880 Maintenance Reserves Repairs Est $9,100 Management Fees $6,372 Taxes - Real Estate $4,221 Utilities $300 Total Expenses $24,023 Expenses Per RSF $2.30 Expenses Per Unit $2,669 P. 5 The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals.
CASH FLOW ANALYSIS Description Year 1 Year 2 Year 3 Year 4 Year 5 GROSS SCHEDULED INCOME $91,032 $91,032 $91,032 $91,032 $91,032 General Vacancy ($4,552) ($4,552) ($4,552) ($4,552) ($4,552) Total Operating Expenses ($24,023) ($24,023) ($24,023) ($24,023) ($24,023) NET OPERATING INCOME $62,457 $62,457 $62,457 $62,457 $62,457 Loan Payment ($36,225) ($36,225) ($36,225) ($36,225) ($36,225) NET CASH FLOW (b/t) $26,232 $26,232 $26,232 $26,232 $26,232 Cash On Cash Return b/t 16.14% 16.14% 16.14% 16.14% 16.14% Footnotes: b/t = before taxes;a/t = after taxes The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals. P. 6
LOAN ANALYSIS Description Year 1 Year 2 Year 3 Year 4 Year 5 LOAN 1 Debt Service Analysis Principal Payments $15,812 $16,497 $17,212 $17,958 $18,737 Interest Payments $20,413 $19,728 $19,013 $18,267 $17,489 Total Debt Service $36,225 $36,225 $36,225 $36,225 $36,225 Balloon/Retirement $0 $0 $0 $0 $401,283 Principal Balance Analysis Beginning Principal Balance $487,500 $471,688 $455,191 $437,978 $420,020 Principal Reductions $15,812 $16,497 $17,212 $17,958 $18,737 Ending Principal Balance $471,688 $455,191 $437,978 $420,020 $0 The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals. P. 7
INTERNAL RATE OF RETURN ANALYSIS BEFORE TAX IRR Time Future Cash Flows Initial Investment ($162,500) End of Year 1 $26,232 End of Year 2 $26,232 End of Year 3 $26,232 End of Year 4 $26,232 End of Year 5* $274,949 IRR = 22.88% * ($26,232 + $248,717) AFTER TAX IRR Time Future Cash Flows Initial Investment ($162,500) End of Year 1 $26,232 End of Year 2 $26,232 End of Year 3 $26,232 End of Year 4 $26,232 End of Year 5* $245,900 IRR = 20.8% * ($26,232 + $219,668) P. 8 The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals.
UNIT MIX REPORT UNIT MIXES Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 1 4 bd 2 bt Sec 8 0 $927 $927 $927 $927 1 4 bd 2 bt Sec 8 0 $924 $924 $924 $924 1 3bd 1 bt Market 0 $700 $700 $700 $700 1 3bd 1.5bt Sec 8 0 $850 $850 $850 $850 1 3bd 1.5bt Sec 8 0 $850 $850 $850 $850 1 3bd 1bt Sec 8 0 $789 $789 $789 $789 1 3bd 1.5bt Market 0 $800 $800 $800 $800 1 3bd 2bt Sec 8 0 $925 $925 $925 $925 1 3bd 2bt Sec 8 0 $821 $821 $821 $821 9 0 $7,586 $7,586 UNIT MIX UNIT MIX SQUARE FEET 3bd 1 bt Market 3bd 1bt Sec 8 3bd 1.5bt Market 3bd 1 bt Market 3bd 1bt Sec 8 3bd 1.5bt Market UNIT MIX INCOME UNIT MIX MARKET INCOME 3bd 1 bt Market 3bd 1bt Sec 8 3bd 1.5bt Market 3bd 1 bt Market 3bd 1bt Sec 8 3bd 1.5bt Market P. 9 The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals.
1300 E 81st ST, front view Side view back view 1300 E 81 st Street 1325 E 80 th Terr front back 1940 E 72 nd ST front back 1
7105 Paseo front side 7314 Euclid front side back 7314 Euclid 2
7921 Brooklyn front side back 7921 Brooklyn 8005 Flora front 3
8012 Flora 8024 Flora front back 4