cgremax@yahoo.com Re/Max Truman Lake Commercial 5 NE 91 Road, Clinton, MO 64735 (660) 525-0393 (p) (660) 885-2208 (f) www.remaxcommercial.com Each Office Independently Owned and Operated
Table of Contents Real Estate Investment Details... 3 Property Description... 4 Property Photos... 5 Pro Forma Summary... 6 Internal Rate of Return Analysis... 7 Cash Flow Analysis... 8 Unit Rent Roll... 9 Unit Mix Report... 9 Detailed General Expenses... 10 Loan Analysis... 11
Real Estate Investment Details ANALYSIS Analysis Date: January 2013 PROPERTY Property: Property Address: Turkey Creek Mobile Estates PURCHASE INFORMATION Property Type: MultiFamily Purchase Price: $1,900,000 Units: 86 Total Rentable Sq. Ft.: 0 FINANCIAL INFORMATION Down Payment: $475,000 Closing Costs: $1,500 LOANS Debt Term Amortization Rate Payment LO Costs Balloon $1,425,000 5 years 20 years 5.25% $9,602 $14,250 INCOME & EXPENSES Gross Operating Income: $256,632 Monthly GOI: $21,386 Total Annual Expenses: ($83,208) Monthly Expenses: ($6,934) CONTACT INFORMATION cgremax@yahoo.com 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 3 of 11
Property Description Turkey Creek Mobile Estates 85 lots. Well established park. Same owners since 1996. Well managed, maintained and regimented park. 85- sites plus home, 37-park owned homes 100% occupancy, 48-lot rents 87% occupancy. Most lots will take 16 X 80 mobiles. Several lots will take double wide. All utilities paid by tenant, all metered. All city utilities. 90% of the lots have natural gas. Park includes 2,400 sq ft all brick ranch style home for owner or managers quarters. Also includes large 40 x 60 shop. Located on 22-acres +/- in Duenweg, just outside Joplin Missouri. The parks occupancy history has averaged 95% from 2007 to date. Seller financing considered to qualified buyers, at sole discretion of Seller, 30% down, First Deed of Trust, 20-year am, 5-year balloon, interest rate TBD. 24- Three bedroom park owned homes(monthly rents $12,635) 5- Four bedroom park owned homes (Monthly rents $2,630) 7- Two bedroom park owned hones(monthly rents $2,925) 1- One bedroom park owned home monthly rent $325) 37- park owned homes(9-double wide) 1- All brick 2,400 sq ft home (monthly rent $900) Monthly park owned rents $18,515.00 Brick home rent $10,800.00 48- lot rents monthly $5,760.00 Most park owned homes are 16 x 80. There are seven double wide models, all homes 1994 or newer. page 4 of 11
Turkey Creek Mobile Estates Property Photos page 5 of 11
Pro Forma Summary UNIT MIX & ANNUAL SCHEDULED INCOME Type Units Actual Total Market Total Park Owned Mobiles 37 $6,000 $222,000 $6,000 $222,000 Lot rents 48 $1,440 $69,120 $1,440 $69,120 All brick home on site 1 $10,800 $10,800 ($12) ($12) TOTALS 86 $301,920 $291,108 INVESTMENT SUMMARY Price: $1,900,000 Units: 86 Price/Unit: $22,093 RSF: 1 Price/RSF: $1,900,000.0 Lot Size: 22.0 acres Floors: 1 ANNUALIZED INCOME Actual Market Gross Potential Rent $301,920 $291,108 Less: Vacancy ($45,288) $0 Effective Gross Income $256,632 $291,108 Less: Expenses ($83,208) ($104,208) Net Operating Income $173,424 $186,900 Debt Service ($115,227) ($115,227) Net Cash Flow after Debt Service $58,197 $71,673 Principal Reduction $41,402 $41,402 Total Return $99,598 $113,074 Cap Rate: 9.13% Market Cap Rate: 9.84% GRM: 6.3 Market GRM: 6.5 FINANCING SUMMARY Loan Amount: $1,425,000 Down Payment: $475,000 Loan Type: Balloon Interest Rate: 5.25% Term: 5 years Monthly Payment: $9,602 DCR: 1.51 ANNUALIZED EXPENSES Actual Market Accounting $1,200 $1,200 Advertising $1,500 $1,500 Building Insurance $8,000 $8,000 Lawn $0 $7,000 Handy Man $12,000 $15,000 Legal $3,000 $3,000 Maintainance $20,000 $20,000 Management Fees $20,000 $20,000 Taxes - Payroll $0 $6,000 Taxes - Personal Property $0 $5,000 Taxes - Real Estate $4,708 $4,708 Trash Removal $4,800 $4,800 Water / Sewer $3,500 $3,500 Utility - Electricity $4,000 $4,000 Phone $500 $500 Total Expenses $83,208 $104,208 Expenses Per RSF $83,208.00 $104,208.00 Expenses Per Unit $968 $1,212 page 6 of 11
Internal Rate of Return Analysis BEFORE TAX IRR Time Future Cash Flows Initial Investment ($490,750) End of Year 1 $58,197 End of Year 2 $70,216 End of Year 3 $82,851 End of Year 4 $96,134 End of Year 5 $110,096 End of Year 6 $240,000 End of Year 7 $255,426 End of Year 8 $271,639 End of Year 9 $288,679 End of Year 10* $2,006,587 IRR = 29.71% * ($306,587 + $1,700,000) AFTER TAX IRR Time Future Cash Flows Initial Investment ($490,750) End of Year 1 $58,197 End of Year 2 $70,216 End of Year 3 $82,851 End of Year 4 $96,134 End of Year 5 $110,096 End of Year 6 $240,000 End of Year 7 $255,426 End of Year 8 $271,639 End of Year 9 $288,679 End of Year 10* $1,885,561 IRR = 29.33% * ($306,587 + $1,578,973) page 7 of 11
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 $301,920 $316,692 $332,196 $348,469 $365,548 $383,475 $402,291 $422,041 $442,771 $464,530 General Vacancy ($45,288) ($47,504) ($49,829) ($52,270) ($54,832) ($57,521) ($60,344) ($63,306) ($66,416) ($69,679) Total Operating Expenses ($83,208) ($83,745) ($84,288) ($84,837) ($85,392) ($85,954) ($86,521) ($87,095) ($87,676) ($88,263) NET OPERATING INCOME $173,424 $185,443 $198,079 $211,361 $225,324 $240,000 $255,426 $271,639 $288,679 $306,587 Loan Payment ($115,227) ($115,227) ($115,227) ($115,227) ($115,227) $0 $0 $0 $0 $0 NET CASH FLOW (b/t) $58,197 $70,216 $82,851 $96,134 $110,096 $240,000 $255,426 $271,639 $288,679 $306,587 Cash On Cash Return b/t 11.86% 14.31% 16.88% 19.59% 22.43% 14.24% 15.16% 16.12% 17.13% 18.19% Footnotes: b/t = before taxes;a/t = after taxes page 8 of 11
Unit Mix Report UNIT MIXES Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 37 Park Owned 0 $500 $18,500 $500 $18,500 48 Lot rents 0 $120 $5,760 $120 $5,760 1 All brick home on 0 $900 $900 $900 $900 86 0 $25,160 $25,160 UNIT MIX UNIT MIX SQUARE FEET Park Owned Mobiles Lot rents All brick home on site Park Owned Mobiles Lot rents All brick home on site UNIT MIX INCOME UNIT MIX MARKET INCOME Park Owned Mobiles Lot rents All brick home on site Park Owned Mobiles Lot rents All brick home on site page 9 of 11
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 ($83,208) ($83,745) ($84,288) ($84,837) ($85,392) ($85,954) ($86,521) ($87,095) ($87,676) ($88,263) Accounting ($1,200) ($1,212) ($1,224) ($1,236) ($1,249) ($1,261) ($1,274) ($1,287) ($1,299) ($1,312) Advertising ($1,500) ($1,515) ($1,530) ($1,545) ($1,561) ($1,577) ($1,592) ($1,608) ($1,624) ($1,641) Building Insurance ($8,000) ($8,080) ($8,161) ($8,242) ($8,325) ($8,408) ($8,492) ($8,577) ($8,663) ($8,749) Handy Man ($12,000) ($12,000) ($12,000) ($12,000) ($12,000) ($12,000) ($12,000) ($12,000) ($12,000) ($12,000) Legal ($3,000) ($3,060) ($3,121) ($3,184) ($3,247) ($3,312) ($3,378) ($3,446) ($3,515) ($3,585) Maintainance ($20,000) ($20,200) ($20,402) ($20,606) ($20,812) ($21,020) ($21,230) ($21,443) ($21,657) ($21,874) Management Fees ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) Taxes - Real Estate ($4,708) ($4,755) ($4,803) ($4,851) ($4,899) ($4,948) ($4,998) ($5,048) ($5,098) ($5,149) Trash Removal ($4,800) ($4,848) ($4,896) ($4,945) ($4,995) ($5,045) ($5,095) ($5,146) ($5,198) ($5,250) Water / Sewer ($3,500) ($3,535) ($3,570) ($3,606) ($3,642) ($3,679) ($3,715) ($3,752) ($3,790) ($3,828) Utility - Electricity ($4,000) ($4,040) ($4,080) ($4,121) ($4,162) ($4,204) ($4,246) ($4,289) ($4,331) ($4,375) Phone ($500) ($500) ($500) ($500) ($500) ($500) ($500) ($500) ($500) ($500) page 10 of 11
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 $41,402 $43,628 $45,975 $48,447 $51,053 $0 $0 $0 $0 $0 Interest Payments $73,826 $71,599 $69,253 $66,780 $64,174 $0 $0 $0 $0 $0 Total Debt Service $115,227 $115,227 $115,227 $115,227 $115,227 $0 $0 $0 $0 $0 Balloon/Retirement $0 $0 $0 $0 $1,194,495 $0 $0 $0 $0 $0 Principal Balance Analysis Beginning Principal Balance $1,425,000 $1,383,598 $1,339,970 $1,293,995 $1,245,548 $0 $0 $0 $0 $0 Principal Reductions $41,402 $43,628 $45,975 $48,447 $51,053 $0 $0 $0 $0 $0 Ending Principal Balance $1,383,598 $1,339,970 $1,293,995 $1,245,548 $0 $0 $0 $0 $0 $0 page 11 of 11