Plant City MHP For Sale

Transcription

1 Plant City MHP For Sale 15-space/Units w/ sf Warehouse-Storage Building/Propane Business $115K Gross Revenus - $70K NOI Stable Tenant Base - Weekly Rentals Warehouse Can Be Used as Storage Facility Seller Motivated - Will Consider All Reasonable Offers Presented by CRES Corp International, LLC 1228 E 7th Ave benny@crescorpllc.com Tampa, Fl 33605

2 CRES Corp International, LLC Plant City MHP For Sale Income, Expenses & Cash Flow Property Overview Potential Rental Income $ 115,000 Purchase/Asking Price $ 600,000 Property Type Mobile Home Parks Other Income - Improvements - No. of Units 15 Total Vacancy and Credits - Other - Price Per Unit $ 40,000 Operating Expenses $ (39,750) Closing Costs - Total Sq Ft 7,700 Annual Reserves: $ Finance Points - Price Per Sq Ft $ 78 Net Operating Income (NOI) $ 75,250 Income per Unit $ 7,667 MIP Payments $ Total Acquisition Cost $ 600,000 Expenses per Unit $ (2,650) Annual Reserves: $ Debt Service: $ (11,879) Cash Flow Before Taxes $ 63,371 Mortgage (s) $ 150,000 Income Taxes: Benefit 0% - Down Payment / Investment $ 450,000 Cash Flow After Taxes $ 63,371 Assumptions Loan Information % of Asking % of Cost Rental Growth Rate: 1.00% Down Payment: $ 450, % 75.00% Expense Growth Rate: 3.00% Initial Loan Balance: $ 150, % 25.00% Capitalization Rate (Resale): 12.00% Marginal Tax Rate: 0.00% Loan Amount Interest Rate Term Payment Capital Gain Tax Rate: 0.00% $ 150, % 20 $990 $ 8.00% 30 $0 $ 8.00% 30 $0 Financial Measurements Year 1 Year 3 Year 7 Notes / Discussion Debt Coverage Ratio (DCR) Loan-to-Value Ratio (LVR) 23.2% 21.0% 15.6% Capitalization Rate Based on Cost 12.54% 12.91% 14.53% Capitalization Rate Based on Resale Price 12.00% 12.00% 12.00% Gross Rent Multiplier Net Present Value (NPV) - B/ Taxes Net Present Value (NPV) - A/Taxes 13.50% 13,544 35,184 86, % 28,293 77, ,441 Cash on Cash Return - Before Taxes 14.08% 14.57% 16.73% Cash on Cash Return - After Taxes 14.08% 14.57% 16.73% Internal Rate of Return - Before Taxes 16.76% 17.53% Internal Rate of Return - After Taxes 16.76% 17.53% Modified Internal Rate of Return - Before Taxes Modified Internal Rate of Return - After Taxes 14.90% 13.17% 14.90% 13.17% Disclaimer: All information presented is believed to be accurate. The information, calculations and data presented in this report are believed to be accurate but are not guaranteed. The information contained in this report shall not be considered as a substitution for legal, accounting or other professional advice. Please seek proper legal and tax advice as appropriate before making investments.

3 Property Description Plant City MHP For Sale Plant City, FL -MHP For Sale Plus 7085 SF Storage Building For Sale-Make Offer!!! sf Block Constructed Warehouse Storage Building included This MHP consists of: HIGHLIGHTS 15-spaces/Units sf - Warehouse Propane Business Included $115K Gross Rev - $70K NOI Located across from Parksdale -15-spaces/Units sf Warehouse Current Income: -$115,000 Gross Revenue -$70,000 NOI Stable tenant base with relatively low turnover. Seller collects rent on a weekly schedule. Warehouse is in good condition and is currently being used as storage by the owner. This building could be partitioned to lease interior individual storage units. Seller is motivated and will consider all reasonable offers. Property is not in distress but Seller wants to sell. Financing Available! Seller Motivated- Make Offer!!! CRES Corp International, LLC benny@crescorpllc.com 1228 E 7th Ave 0 Tampa, Fl 33605

4 Plant City MHP For Sale Laundry Warehouse-Storage Exterior Warehouse-Storage Interior

5 Rental Activity Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Potential Rental Income $ 115,000 $ 116,150 $ 119,635 $ 123,224 $ 126,920 Less: Vacancy & Credit Losses Effective Gross Income $ 115,000 $ 116,150 $ 119,635 $ 123,224 $ 126,920 Less: Operating Expenses (39,750) (40,943) (42,171) (43,436) (44,739) Net Operating Income (NOI) $ 75,250 $ 75,208 $ 77,464 $ 79,788 $ 82,181 Less: Annual Debt Service (11,879) (11,879) (11,879) (11,879) (11,879) CASH FLOW Before Taxes $ 63,371 $ 63,328 $ 65,585 $ 67,908 $ 70,302 Property Resale Analysis Projected Sales Price $ 627,083 $ 626,729 $ 645,531 $ 664,897 $ 684,844 Less: Selling Expenses (18,813) (18,802) (19,366) (19,947) (20,545) Adjusted Projected Sales Price $ 608,271 $ 607,927 $ 626,165 $ 644,950 $ 664,299 Less: Mortgage(s) Balance Payoff (145,519) (140,809) (135,858) (130,653) (125,183) SALE PROCEEDS Before Taxes $ 462,752 $ 467,118 $ 490,307 $ 514,297 $ 539,116 Cash Position Cash Generated in Current Year $ 63,371 $ 63,328 $ 65,585 $ 67,908 $ 70,302 Cash Generated in Previous Years n/a 63, , , ,192 Cash Generated from Property Sale 462, , , , ,116 Cash Inflow (Outflow) from Refinancing Original Initial Investment (450,000) (450,000) (450,000) (450,000) (450,000) Total Potential CASH Generated $ 76,123 $ 143,817 $ 232,591 $ 324,489 $ 419,610 Financial Measurements Debt Coverage Ratio (DCR) Loan-to-Value Ratio (LVR) 23.2% 22.5% 21.0% 19.7% 18.3% Capitalization Rate Based on Cost 12.54% 12.53% 12.91% 13.30% 13.70% Capitalization Rate Based on Resale Price 12.00% 12.00% 12.00% 12.00% 12.00% Gross Rent Monthly Multiplier (GRM) Gross Rent Yearly Multiplier (GRM) Value of Property Using this GRM , , , , ,601 Break-Even Ratio 44.89% 45.48% 45.18% 44.89% 44.61% Operating Expense Ratio 34.57% 35.25% 35.25% 35.25% 35.25% Cash-on-Cash Return with Equity 16.92% 14.63% 19.00% 18.74% 18.50% Cash-on-Cash Return - Before Taxes 14.08% 14.07% 14.57% 15.09% 15.62% 8/21/ :46 AM Cash Flow Analyzer

6 Rental Activity Analysis Potential Rental Income Less: Vacancy & Credit Losses Effective Gross Income Less: Operating Expenses Net Operating Income (NOI) Year 6 Year 7 Year 8 Year 9 Year 10 $ 130,728 $ 134,650 $ 138,689 $ 142,850 $ 147, $ 130,728 $ 134,650 $ 138,689 $ 142,850 $ 147,135 (46,081) (47,464) (48,887) (50,354) (51,865) $ 84,647 $ 87,186 $ 89,802 $ 92,496 $ 95,271 Less: Annual Debt Service CASH FLOW Before Taxes (11,879) (11,879) (11,879) (11,879) (11,879) $ 72,768 $ 75,307 $ 77,922 $ 80,617 $ 83,391 Property Resale Analysis Projected Sales Price Less: Selling Expenses Adjusted Projected Sales Price $ 705,389 $ 726,551 $ 748,347 $ 770,798 $ 793,922 (21,162) (21,797) (22,450) (23,124) (23,818) $ 684,228 $ 704,754 $ 725,897 $ 747,674 $ 770,104 Less: Mortgage(s) Balance Payoff SALE PROCEEDS Before Taxes (119,432) (113,387) (107,033) (100,354) (93,333) $ 564,796 $ 591,367 $ 618,864 $ 647,320 $ 676,771 Cash Position Cash Generated in Current Year Cash Generated in Previous Years Cash Generated from Property Sale Cash Inflow (Outflow) from Refinancing Original Initial Investment Total Potential CASH Generated $ 72,768 $ 75,307 $ 77,922 $ 80,617 $ 83, , , , , , , , , , , (450,000) (450,000) (450,000) (450,000) (450,000) $ 518,057 $ 619,936 $ 725,355 $ 834,428 $ 947,270 Financial Measurements Debt Coverage Ratio (DCR) Loan-to-Value Ratio (LVR) Capitalization Rate Based on Cost Capitalization Rate Based on Resale Price Gross Rent Monthly Multiplier (GRM) Gross Rent Yearly Multiplier (GRM) Value of Property Using this GRM 5.00 Break-Even Ratio Operating Expense Ratio % 15.6% 14.3% 13.0% 11.8% 14.11% 14.53% 14.97% 15.42% 15.88% 12.00% 12.00% 12.00% 12.00% 12.00% , , , , , % 44.07% 43.82% 43.57% 43.32% 35.25% 35.25% 35.25% 35.25% 35.25% Cash-on-Cash Return with Equity Cash-on-Cash Return - Before Taxes 18.26% 18.04% 17.83% 17.62% 17.43% 16.17% 16.73% 17.32% 17.91% 18.53% 8/21/ :46 AM Cash Flow Analyzer

7 Annual Property Operating Data 1 2 Year 1 Sq Ft Per Unit Year 2 Sq Ft Per Unit Year 3 Sq Ft Per Unit Year 4 Sq Ft Per Unit Year 5 Sq Ft Per Unit Potential Rental Income $ 115, $ 116, $ 119, $ 123, $ 126, Effective Gross Income $ 115, $ 116, $ 119, $ 123, $ 126, Operating Expenses Insurance 1, , , , , Maintenance 18, , , , , Property Taxes 5, , , , , Trash Removal 1, , , , , Electricity 11, , , , , Well 1, , , , , Total Operating Expenses $ 39, $ 40, $ 42, $ 43, $ 44, Net Operating Income (NOI) $ 75, $ 75, $ 77, $ 79, $ 82, Less: Annual Debt Service (11,879) (11,879) (11,879) (11,879) (11,879) Cash Flow Before Taxes $ 63, $ 63, $ 65, $ 67, $ 70, Cash Flow Analyzer

8 Annual Property Operating Data 1 2 Year 6 Sq Ft Per Unit Year 7 Sq Ft Per Unit Year 8 Sq Ft Per Unit Year 9 Sq Ft Per Unit Year 10 Sq Ft Per Unit Potential Rental Income Effective Gross Income $ 130, $ 134, $ 138, $ 142, $ 147, $ 130, $ 134, $ 138, $ 142, $ 147, Operating Expenses Insurance Maintenance Property Taxes Trash Removal Electricity Well Total Operating Expenses 1, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , $ 46, $ 47, $ 48, $ 50, $ 51, Net Operating Income (NOI) $ 84, $ 87, $ 89, $ 92, $ 95, Less: Annual Debt Service Cash Flow Before Taxes (11,879) (11,879) (11,879) (11,879) (11,879) $ 72, $ 75, $ 77, $ 80, $ 83, Cash Flow Analyzer

9 Cash Flow After Taxes Cash Flow Before Taxes $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $ Time Net Operating MIP Payments Debt Cash Flow Incomes Cash Flow Period Income Service Before Tax Taxes After Tax Int Investment $ (450,000) $ (450,000) Year 1 75,250 - (11,879) 63,371-63,371 Year 2 75,208 - (11,879) 63,328-63,328 Year 3 77,464 - (11,879) 65,585-65,585 Year 4 79,788 - (11,879) 67,908-67,908 Year 5 82,181 - (11,879) 70,302-70,302 Year 6 84,647 - (11,879) 72,768-72,768 Year 7 87,186 - (11,879) 75,307-75,307 Year 8 89,802 - (11,879) 77,922-77,922 Year 9 92,496 - (11,879) 80,617-80,617 Year 10 95,271 - (11,879) 83,391-83, Cash Flow Analyzer

10 After Taxes Before Taxes 20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Time Initial Investment Cash Flow Cash on Cash Income Cash Flow Cash on Cash Period Adj for Refinance Before Taxes Before Taxes Taxes After Taxes After Taxes Year 1 $ 450,000 $ 63, % $ $ 63, % Year 2 450,000 63, % - 63, % Year 3 450,000 65, % - 65, % Year 4 450,000 67, % - 67, % Year 5 450,000 70, % - 70, % Year 6 450,000 72, % - 72, % Year 7 450,000 75, % - 75, % Year 8 450,000 77, % - 77, % Year 9 450,000 80, % - 80, % Year ,000 83, % - 83, % Cash Flow Analyzer

11 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Time Net Operating Cap Rate on Cost Resale Period Income (NOI) $ 600,000 Value Year 1 $ 75, % $ 627,083 Year 2 75, % 626,729 Year 3 77, % 645,531 Year 4 79, % 664,897 Year 5 82, % 684,844 Year 6 84, % 705,389 Year 7 87, % 726,551 Year 8 89, % 748,347 Year 9 92, % 770,798 Year 10 95, % 793, Cash Flow Analyzer

12 BreakEven Occupancy BreakEven Occupancy with Cash on Cash Requirment 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Cash on Cash Time Period Potential Operating, Debt, Occupancy BreakEven Max Vacancy BreakEven Max Vacancy Requirement Rental Income Reserve Expenses Rate (Existing) Occupancy Rate BreakEven Rate Occupancy Rate BreakEven Rate 6.00% w/ Cash on Cash w/ Cash on Cash Year 1 115,000 (51,629) % 44.89% 55.11% 68.37% 31.63% Year 2 116,150 (52,822) % 45.48% 54.52% 68.72% 31.28% Year 3 119,635 (54,050) % 45.18% 54.82% 67.75% 32.25% Year 4 123,224 (55,315) % 44.89% 55.11% 66.80% 33.20% Year 5 126,920 (56,618) % 44.61% 55.39% 65.88% 34.12% Year 6 130,728 (57,960) % 44.34% 55.66% 64.99% 35.01% Year 7 134,650 (59,343) % 44.07% 55.93% 64.12% 35.88% Year 8 138,689 (60,767) % 43.82% 56.18% 63.28% 36.72% Year 9 142,850 (62,233) % 43.57% 56.43% 62.47% 37.53% Year ,135 (63,744) % 43.32% 56.68% 61.67% 38.33% Cash Flow Analyzer

13 CRES Corp International, LLC CRES Corp International, LLC 1228 E 7th Ave 0 Tampa, Fl benny@crescorpllc.com CRES Corp International, LLC (CCI) is a Commercial Real Estate company offering development, finance and brokerage services: Construction & Development Project Planning Property Acquisitions Investment Structuring Property Conversion and Repositioning Joint Venture Structuring Medical/Health Care Property Management Financial Arrangement & Consulting To assist our Clients with their development projects and acquisitions we offer affordable financing alternatives to conventional financing methods: Variable Rate Demand Bonds Industrial Revenue & Municipal Bonds Build-to Lease Program Foreign Investment Funds Joint Venture/Equity Partnership Arrangements Our goal is to bring our Clients the lowest interest rates and best leverage on their purchases and projects. Our Development Teamconsists of licensed and bonded professionals that utilize the most recent sustainable technology in their construction, offering considerable savings in construction costs and costs over time. We will consider the following properties and projects: Health Care/Medical Offices Retail Schools/Universities Hospitality For further information contact or benny@crescorpllc.com

14 Terms & Definitions Net Operating Income (NOI) is a property s gross rental income reduced by all expenses except for loan payments, income taxes, mortgage insurance premium (MIP) payments and sometimes funded reserves. Debt Coverage Ratio (DCR) is a property s net operating income divided by the amount of debt payments. Lenders use this calculation to determine the remaining operating cash flow after the debt payments. Loan-to-Value Ratio (LTV) is the outstanding debt divided by the value of the property. This ratio is used to determine the amount of leverage and property equity. The debt balance can be the beginning or end-of-year balance. The property value used can be the contract price or the fair market value at the end of the year. Capitalization Rate (Cap Rate) is the net operating income (NOI) divided by either the property s contract purchase price or its fair market value. Cash-on-Cash Return is the net cash flow divided it by the initial investment (down payment). The calculation does not take into account the time value of money or change in the property s equity. Cash-on-Cash Return with Equity Build-up modifies the cash-on-cash return calculation by adding the property s net change in equity for that year to the numerator and adding all previously generated equity to the denominator of the cash-on-cash return ratio. The calculation calculates the return on the property equity, i.e. the return on the cash that is tied up in the property. Net Present Value (NPV) converts future dollars into present-day dollars by discounting (reducing) the future cash flow of a property by a given rate or percentage. The initial investment (down payment) is subtracted from the discounted dollars to derive the NPV. A positive NPV means that the property will generate a higher return than the given rate or percentage used to calculate the NPV amount. Gross Rent Multiplier (GRM) is a property s fair market value divided by its gross rental income. Mortgage Insurance Premium (MIP) Payments are insurance premiums charged by a lender to protect that lender against loss from a mortgager's default. The rates are charged on the balance of the loan and may be paid annually, monthly, or in some combination of the two (split premiums). Internal Rate-of-Return (IRR) is the most widely used method of valuing a property s annual cash flow stream. Since a property s cash flow is earned in the future, those future dollars must be converted to present-day dollars. The IRR calculation discounts (reduces) the property s future cash flow at a rate (i.e. percentage) so that the sum of all cash flow for a specified time period is equal to the initial investment. The rate or percentage needed to do that is the IRR. In other words, IRR is the discount rate at which Net Present Value (NPV) is zero. Modified Internal Rate-of-Return (MIRR) modifies the IRR to avoid the drawbacks of the traditional IRR. The IRR implicitly assumes that all cash flow is either reinvested or discounted at the computed IRR rate. In reality, a property s cash flow probably will not be reinvested at the computed IRR rate, but rather earn zero or a small amount of interest. The MIRR eliminates the reinvestment assumption by utilizing user stipulated reinvestment and borrowing rates. benny@crescorpllc.com CRES Corp International, LLC 1228 E 7th Ave 0 Tampa, Fl 33605