For more information contact: Certified Commerical Broker/Owner rroberts@ccim.net $1,295,000 New Asking Price $155,000 PRICE REDUCTION HUGE VALUE ADD PROPERTY MOTIVATED SELLER Phone: 509-248-9400 Fax: 509-965-9282 5625 Summitview Ave Yakima, WA 98908 www.heritagemoultray.com
Real Estate Investment Details ANALYSIS Analysis Date March 2016 PROPERTY Property Property Address PURCHASE INFORMATION Property Type MultiFamily Purchase Price $1,295,000 Units 38 Total Rentable Sq. Ft. 0 Resale Valuation 8.0% (capitalization of noi) Resale Expenses 8.0% FINANCIAL INFORMATION Down Payment $388,500 Closing Costs $5,000 LT Capital Gain 20.00% Federal Tax Rate 35.0% Discount Rate 6.00% LOANS Debt Term Amortization Rate Payment LO Costs Fixed $906,500 25 years 25 years 4.5% $5,039 $9,065 INCOME & EXPENSES Gross Operating Income $197,436 Monthly GOI $16,453 Total Annual Expenses ($80,989) Monthly Expenses ($6,749) CONTACT INFORMATION rroberts@ccim.net The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projections and analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax or other professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting, tax or other professional area before making any decisions. page 2 of 15
Property Description $155,000 PRICE REDUCTION!!!! MOVIVATED SELLER!!!!!!!!!!! VALUE ADD OPPORTUNITY!!!! This mobile home park has the potential to be a serious CASH COW! By simply filling up the vacant spaces an investor has the ability to increase the income by at least $50,000 a year. This park has 2 parcels with the second parcel in the back under utilized with only 6 little houses on it. With this parcel being zoned for high density and the ability to put many more trailers on it an astute investor has the potential to raise the rental income much higher. This park also is fully serviced by public water and sewer!!!! It has views of Moses Lakes and is only ½ a mile from Interstate 90. See marketing package for full financial details as well as all the upgrades already made to this park and the items that could be done to increase the rents. page 3 of 15
Property Photos Drive way in the park Laundry Room Single Wide Unit 1 of 6 houses Additional lot with room for expansion Moses Lake View across the street page 4 of 15
Maps and Aerials page 5 of 15
Executive Summary ACQUISITION COSTS Purchase Price, Points and Closing Costs $1,309,065 Investment - Cash $402,565 First Loan $906,500 INVESTMENT INFORMATION Purchase Price $1,295,000 Price per Unit $34,079 Price per Sq. Ft. NA Income per Unit $6,090 Expenses per Unit ($2,131) INCOME, EXPENSES & CASH FLOW Gross Scheduled Income $231,420 Total Vacancy and Credits ($33,984) Operating Expenses ($80,989) Net Operating Income $116,447 Debt Service ($60,463) Cash Flow Before Taxes $55,984 Total Interest (Debt Service) ($40,382) Depreciation and Amortization ($29,916) Taxable Income (Loss) $46,149 Tax Savings (Costs) ($16,152) Cash Flow After Taxes $39,831 FINANCIAL INDICATORS Cash on Cash Return Before Taxes 13.91% Optimal Internal Rate of Return (yr 3) 35.64% Debt Coverage Ratio 1.93 Capitalization Rate 8.99% Gross Rent Multiplier 5.60 Gross Income / Square Feet $0.00 Gross Expenses / Square Feet $0.00 Operating Expense Ratio 41.02% page 6 of 15
Unit Mix Report UNIT MIXES Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 1 #1 House 0 $425 $425 $425 $425 1 #2 House 0 $750 $750 $750 $750 1 #3 House 0 $550 $550 $550 $550 1 #4 House 0 $650 $650 $650 $650 1 #5 House 0 $675 $675 $675 $675 1 #6 House - Vacant 0 $0 $0 $0 $0 1 #11 0 $400 $400 $400 $400 1 #12 0 $400 $400 $400 $400 1 #13 0 $650 $650 $650 $650 1 #14 0 $425 $425 $425 $425 1 #15-Vacant 0 $0 $0 $0 $0 1 #16 0 $400 $400 $400 $400 1 #17-Vacant 0 $0 $0 $0 $0 1 #18-Vacant 0 $0 $0 $0 $0 1 #19 0 $600 $600 $600 $600 1 #20 0 $900 $900 $900 $900 1 #21 0 $400 $400 $400 $400 1 #22 0 $600 $600 $600 $600 1 #23 0 $400 $400 $400 $400 1 #24 0 $650 $650 $650 $650 1 #25 0 $800 $800 $800 $800 1 #26 0 $650 $650 $650 $650 1 #27 0 $795 $795 $795 $795 1 #28-Vacant 0 $0 $0 $0 $0 1 #29 0 $585 $585 $585 $585 1 #30 0 $675 $675 $675 $675 1 #31 0 $750 $750 $750 $750 1 #32 0 $700 $700 $700 $700 1 #33 0 $625 $625 $625 $625 1 #34 0 $450 $450 $450 $450 1 #35 0 $400 $400 $400 $400 1 #36-Vacant 0 $0 $0 $0 $0 1 #37 0 $750 $750 $750 $750 1 #38 0 $600 $600 $600 $600 1 #39 0 $400 $400 $400 $400 1 #40 0 $600 $600 $600 $600 1 #49-RV- Vacant 0 $0 $0 $0 $0 1 #50-RV - Vacant 0 $0 $0 $0 $0 38 0 $17,655 $17,655 UNIT MIX page 7 of 15 UNIT MIX SQUARE FEET
Cash Flow Analysis Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 GROSS SCHEDULED INCOME $231,420 $238,314 $245,414 $252,726 $260,256 $268,011 $275,998 $284,223 $292,694 $301,418 General Vacancy ($33,984) ($23,336) ($12,018) ($12,378) ($12,750) ($13,132) ($13,526) ($13,932) ($14,350) ($14,780) Total Operating Expenses ($80,989) ($80,989) ($80,989) ($80,989) ($80,989) ($80,989) ($80,989) ($80,989) ($80,989) ($80,989) NET OPERATING INCOME $116,447 $133,989 $152,407 $159,358 $166,517 $173,890 $181,482 $189,302 $197,355 $205,648 Loan Payment ($60,463) ($60,463) ($60,463) ($60,463) ($60,463) ($60,463) ($60,463) ($60,463) ($60,463) ($60,463) NET CASH FLOW (b/t) $55,984 $73,526 $91,944 $98,895 $106,054 $113,426 $121,019 $128,838 $136,891 $145,185 Cash On Cash Return b/t 13.91% 18.26% 22.84% 24.57% 26.34% 28.18% 30.06% 32.00% 34.00% 36.06% NET OPERATING INCOME $116,447 $133,989 $152,407 $159,358 $166,517 $173,890 $181,482 $189,302 $197,355 $205,648 Depreciation ($29,553) ($30,843) ($30,843) ($30,843) ($30,843) ($30,843) ($30,843) ($30,843) ($30,843) ($29,558) Amortization ($363) ($363) ($363) ($363) ($363) ($363) ($363) ($363) ($363) ($363) Loan Interest ($40,382) ($39,459) ($38,494) ($37,485) ($36,429) ($35,325) ($34,170) ($32,962) ($31,699) ($30,378) TAXABLE INCOME (LOSS) $46,149 $63,325 $82,707 $90,668 $98,882 $107,359 $116,107 $125,134 $134,450 $145,349 Income Taxes ($16,152) ($22,164) ($28,948) ($31,734) ($34,609) ($37,576) ($40,637) ($43,797) ($47,058) ($50,872) CASH FLOW (a/t) $39,831 $51,362 $62,996 $67,161 $71,445 $75,851 $80,382 $85,041 $89,834 $94,312 Cash On Cash Return a/t 9.89% 12.76% 15.65% 16.68% 17.75% 18.84% 19.97% 21.12% 22.32% 23.43% Footnotes: b/t = before taxes;a/t = after taxes page 8 of 15
Annual Property Operating Data Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Rental Income $226,560 $233,357 $240,358 $247,568 $254,995 $262,645 $270,524 $278,640 $286,999 $295,609 Laundry $2,700 $2,754 $2,809 $2,865 $2,923 $2,981 $3,041 $3,101 $3,163 $3,227 Electricity Reimubursement $2,160 $2,203 $2,247 $2,292 $2,338 $2,385 $2,433 $2,481 $2,531 $2,581 GROSS SCHEDULED INCOME $231,420 $238,314 $245,414 $252,726 $260,256 $268,011 $275,998 $284,223 $292,694 $301,418 General Vacancy ($33,984) ($23,336) ($12,018) ($12,378) ($12,750) ($13,132) ($13,526) ($13,932) ($14,350) ($14,780) GROSS OPERATING INCOME $197,436 $214,978 $233,396 $240,347 $247,506 $254,879 $262,471 $270,291 $278,344 $286,637 Expenses Building Insurance ($4,213) ($4,213) ($4,213) ($4,213) ($4,213) ($4,213) ($4,213) ($4,213) ($4,213) ($4,213) Landscape & Snow Removal ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) Maintenance & Repairs ($9,395) ($9,395) ($9,395) ($9,395) ($9,395) ($9,395) ($9,395) ($9,395) ($9,395) ($9,395) Management Fees ($9,750) ($9,750) ($9,750) ($9,750) ($9,750) ($9,750) ($9,750) ($9,750) ($9,750) ($9,750) Taxes - Real Estate ($8,682) ($8,682) ($8,682) ($8,682) ($8,682) ($8,682) ($8,682) ($8,682) ($8,682) ($8,682) Water/Sewer/Trash ($18,082) ($18,082) ($18,082) ($18,082) ($18,082) ($18,082) ($18,082) ($18,082) ($18,082) ($18,082) Utility - Electricity ($24,802) ($24,802) ($24,802) ($24,802) ($24,802) ($24,802) ($24,802) ($24,802) ($24,802) ($24,802) Utility - Cable TV ($4,965) ($4,965) ($4,965) ($4,965) ($4,965) ($4,965) ($4,965) ($4,965) ($4,965) ($4,965) TOTAL OPERATING EXPENSES ($80,989) ($80,989) ($80,989) ($80,989) ($80,989) ($80,989) ($80,989) ($80,989) ($80,989) ($80,989) NET OPERATING INCOME $116,447 $133,989 $152,407 $159,358 $166,517 $173,890 $181,482 $189,302 $197,355 $205,648 page 9 of 15
Detailed General Expenses Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Expenses ($80,989) ($80,989) ($80,989) ($80,989) ($80,989) ($80,989) ($80,989) ($80,989) ($80,989) ($80,989) Building Insurance ($4,213) ($4,213) ($4,213) ($4,213) ($4,213) ($4,213) ($4,213) ($4,213) ($4,213) ($4,213) Landscape & Snow Removal ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) Maintenance & Repairs ($9,395) ($9,395) ($9,395) ($9,395) ($9,395) ($9,395) ($9,395) ($9,395) ($9,395) ($9,395) Management Fees ($9,750) ($9,750) ($9,750) ($9,750) ($9,750) ($9,750) ($9,750) ($9,750) ($9,750) ($9,750) Taxes - Real Estate ($8,682) ($8,682) ($8,682) ($8,682) ($8,682) ($8,682) ($8,682) ($8,682) ($8,682) ($8,682) Water/Sewer/Trash ($18,082) ($18,082) ($18,082) ($18,082) ($18,082) ($18,082) ($18,082) ($18,082) ($18,082) ($18,082) Utility - Electricity ($24,802) ($24,802) ($24,802) ($24,802) ($24,802) ($24,802) ($24,802) ($24,802) ($24,802) ($24,802) Utility - Cable TV ($4,965) ($4,965) ($4,965) ($4,965) ($4,965) ($4,965) ($4,965) ($4,965) ($4,965) ($4,965) page 10 of 15
Loan Analysis Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 LOAN 1 Debt Service Analysis Principal Payments $20,082 $21,004 $21,969 $22,979 $24,034 $25,138 $26,293 $27,501 $28,764 $30,086 Interest Payments $40,382 $39,459 $38,494 $37,485 $36,429 $35,325 $34,170 $32,962 $31,699 $30,378 Total Debt Service $60,463 $60,463 $60,463 $60,463 $60,463 $60,463 $60,463 $60,463 $60,463 $60,463 Principal Balance Analysis Beginning Principal Balance $906,500 $886,418 $865,414 $843,445 $820,466 $796,432 $771,294 $745,000 $717,499 $688,735 Principal Reductions $20,082 $21,004 $21,969 $22,979 $24,034 $25,138 $26,293 $27,501 $28,764 $30,086 Ending Principal Balance $886,418 $865,414 $843,445 $820,466 $796,432 $771,294 $745,000 $717,499 $688,735 $658,649 page 11 of 15
Property Equity Analysis $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Year 1 2 3 4 5 6 7 8 9 10 Legend Initial Equity Equity (loan reduction) Equity (appreciation) page 12 of 15
Gross Income Vs. Operating Expenses $310,000 $279,000 $248,000 $217,000 $186,000 $155,000 $124,000 $93,000 $62,000 $31,000 Year 1 2 3 4 5 6 7 8 9 10 Legend GROSS SCHEDULED INCOME Total Operating Expenses page 13 of 15
Equity vs. Debt $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Year 1 2 3 4 5 6 7 8 9 10 Legend Equity Loan Principal Balance page 14 of 15
Cumulative Wealth Analysis $2,300,000 $2,070,000 $1,840,000 $1,610,000 $1,380,000 $1,150,000 $920,000 $690,000 $460,000 $230,000 Year 1 2 3 4 5 6 7 8 9 10 Legend Equity (loan reduction) Equity (appreciation) CASH FLOW (a/t) page 15 of 15