Fully Stabilized 12-Unit Property at 13.71% Cap Rate!

Transcription

1 Fully Stabilized 12- Property at 13.71% Cap Rate! and select the picture Maryland is a 12 unit apartment building. Located in Chicago's Avalon Park / Chatham neighborhood Building comprised of six (6) two bedrooms / one bathroom six (6) one bedrooms / one bathroom Presently four vacant unit Exclusively Presented By: richard@realpace.ca

2 Maryland Prepared by: Contact Info: 616, Corporate Way, Suite Valley Cottage, NY To Insert a Picture here, click inside this box with your mouse, then click on "INSERT PIC" button on the right Mix: Notes/Description of Property: Six (6) - 2 Br/1B & Six (6) 1Br/1B 8001 S. Maryland is a 12 unit apartment building located in Chicago's Avalon Park / Chatham neighborhood. At present eleven units in the building are occupied, with one unit being vacant. Notes on Area: Building Sq.Ft Area 2741 Size 1Br/1B Br/1B Apt Other highlights include All windows have been changed Apartments have been self-metered, and tenants pay electric baseboard heat. Floors have all been redone with hardwood. Most kitchens and bathrooms have been updated. Purchase/Offer Price $449,000 Capitalization Rate 13.71% Downpayment $89,800 Gross Rent Multiplier 4.54 Initial Capital Improvements and Reserves $0 $/Sq Foot $47.51 Total Closing Costs $7,140 $/ $37,417 Additional Upfront Fee to Buyer (Optional) $0 Total Cash Investment $96,940 Cash-on-Cash vs. ROE Current / First Year Gross Rent $99,000 Current / First Year Operating Expenses $23,580 Vacancy, Concessions, Management Fees $13,860 Current / First Year Net Operating Income $61,560 Projected Holding Period 10 years Terminal Cap Rate Assumed 10.17% Projected Resale Price $723,401 Projected Leveraged IRR of Investment * 41.77% Projected Leveraged MIRR of Investment * 23.63% Projected Cumulative Cash-on-Cash Return * % 50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Cash-on-Cash Return (pre-tax) Return on Equity (pre-tax) Selected Projected Financial Measures Year 1 Year 12 Year 25 Year 40 Annual Cash-on-Cash Return * 34.85% N/A N/A N/A Cumulative Cash-on-Cash Return (ROI) * 34.85% N/A N/A N/A DCR 2.22 N/A N/A N/A LTV 58.29% N/A N/A N/A Return on Equity * 13.38% N/A N/A N/A Economic Occupancy % 90% N/A N/A N/A Effective Rent per sq foot $9.01 N/A N/A N/A * All figures pre-tax

3 Maryland Living Room Kitchen Bathroom Porche Water Tank Electrical Panel

4 Annual Gross Schedule Income $99,000 % of GSI -Vacancy $9,900 10% Price $449,000 -Concessions $0 0% Sq Feet 9,450 -Management $3,960 4% # of s 12 Effective Gross Income $85,140 $/ $37,417 Other Income $0 0% Gross Operating Income $85,140 Capitalization Rate (Cap Rate) 13.71% Economic Occupancy % 90.00% Gross Rent Multiplier (GRM) 4.54 Payback Period 2.87 Operating Expenses: % of GOI Debt Coverage Ratio (DCR) 2.22 Accounting $0 0% Advertising $0 0% Downpayment $89,800 Insurance Hazard $3,960 5% Initial Cap Improvements/Reserves $0 Janitorial $1,200 1% Total Closing Costs $7,140 Legal $0 0% Additional Upfront Fee to Buyer (Optional) $0 Licenses $0 0% Total Investment $96,940 Miscellaneous $0 0% Pre-Tax Cash/Cash Return 34.85% Repairs and Maintenance $3,600 4% Supplies Maintenance $0 0% Taxes - Property $5,280 6% Lawn Care $300 0% Salvage $1,440 2% Pest Control $900 1% Other $0 0% Other $0 0% Utilities: Water/Sewer $3,120 4% Electricity $1,320 2% Gas $2,460 3% Fuel Oil $0 0% Other Utilities $0 0% Reserves $0 0% Total Operating Expenses $23,580 28% Net Operating Income $61,560 72% Debt Service (1st Mortgage) ($27,772) Debt Service (2nd Mortgage) $0 Total Debt Service ($27,772) Cash Flow Before Taxes $33,788 Annual Property Operating Data Report

5 Type # # of units type Square Ft. Monthly Rent Per Annual Rent Year (End) /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/2026 Annual Growth OPERATING INCOME REPORT Br ,500 2% 7,500 7,650 7,803 7,959 8,118 8,281 8,446 8,615 8,787 8, Br ,500 2% 7,500 7,650 7,803 7,959 8,118 8,281 8,446 8,615 8,787 8, Br ,500 2% 7,500 7,650 7,803 7,959 8,118 8,281 8,446 8,615 8,787 8, Br ,500 2% 7,500 7,650 7,803 7,959 8,118 8,281 8,446 8,615 8,787 8, Br ,500 2% 7,500 7,650 7,803 7,959 8,118 8,281 8,446 8,615 8,787 8, Br ,500 2% 7,500 7,650 7,803 7,959 8,118 8,281 8,446 8,615 8,787 8, Br ,000 2% 9,000 9,180 9,364 9,551 9,742 9,937 10,135 10,338 10,545 10, Br ,000 2% 9,000 9,180 9,364 9,551 9,742 9,937 10,135 10,338 10,545 10, Br ,000 2% 9,000 9,180 9,364 9,551 9,742 9,937 10,135 10,338 10,545 10, Br ,000 2% 9,000 9,180 9,364 9,551 9,742 9,937 10,135 10,338 10,545 10, Br ,000 2% 9,000 9,180 9,364 9,551 9,742 9,937 10,135 10,338 10,545 10, Br ,000 2% 9,000 9,180 9,364 9,551 9,742 9,937 10,135 10,338 10,545 10,756 Gross Scheduled Incom 9,450 8,250 99,000 99, , , , , , , , , ,314 Vacancy Rate Vacancy Loss Concessions Rate Concessions Amount Management Fee Other Income Gross Operating Income 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 9,900 10,098 10,300 10,506 10,716 10,930 11,149 11,372 11,599 11,831 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% ,960 4,039 4,120 4,202 4,286 4,372 4,460 4,549 4,640 4, % ,140 86,843 88,580 90,351 92,158 94,001 95,881 97,799 99, ,750 Physical Occupancy % 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% Economic Occupancy % 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% Effective Rent per Square Foot $9.01 $9.19 $9.37 $9.56 $9.75 $9.95 $10.15 $10.35 $10.56 $10.77 Total Growth in Gross Operating Income 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Type # # of units type Square Ft. Monthly Rent Per Annual Rent Year (End) Annual Growth Br ,500 2% Br ,500 2% Br ,500 2% Br ,500 2% Br ,500 2% Br ,500 2% Br ,000 2% Br ,000 2% Br ,000 2% Br ,000 2% Br ,000 2% Br ,000 2% Gross Scheduled Incom 9,450 8,250 99,000 Vacancy Rate Vacancy Loss Concessions Rate Concessions Amount Management Fee Other Income 0% Gross Operating Income Physical Occupancy % Economic Occupancy % Effective Rent per Square Foot Total Growth in Gross Operating Income

6 INCOME STATEMENT Year Year (End) /01/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/2026 Gross Scheduled Income 99, , , , , , , , , ,314 + Other Income Vacancy Loss (9,900) (10,098) (10,300) (10,506) (10,716) (10,930) (11,149) (11,372) (11,599) (11,831) - Concessions Management Fees (3,960) (4,039) (4,120) (4,202) (4,286) (4,372) (4,460) (4,549) (4,640) (4,733) Effective Gross Income 85,140 86,843 88,580 90,351 92,158 94,001 95,881 97,799 99, ,750 - Operating Expenses (23,580) (24,052) (24,533) (25,023) (25,524) (26,034) (26,555) (27,086) (27,628) (28,180) Net Operating Income 61,560 62,791 64,047 65,328 66,635 67,967 69,327 70,713 72,127 73,570 - Mortgage Interest (21,378) (20,984) (20,565) (20,121) (19,649) (19,148) (18,616) (18,051) (17,451) (16,815) - Depreciation Building (12,518) (13,062) (13,062) (13,062) (13,062) (13,062) (13,062) (13,062) (13,062) (13,062) - Depreciation Improvements Taxable Income (Before write-offs) 27,664 28,746 30,420 32,146 33,924 35,758 37,649 39,600 41,614 43,693 Losses Carried Over Taxable Income (After write-offs) 27,664 28,746 30,420 32,146 33,924 35,758 37,649 39,600 41,614 43,693

7 CASHFLOW REPORT INITIAL CAPITAL OUTLAY SUMMARY Downpayment ($89,800.00) ***Negative numbers denote an outflow Inspection and Appraisal ($2,650.00) of cash, positive an inflow Origination fee - 1st Mortgage $0.00 Origination fee - 2nd Mortgage $0.00 Discount fee - 1st Mortgage $0.00 Discount fee - 2nd Mortgage $0.00 Closing costs & misc. fees ($8,980.00) Total Closing Costs (Not financed) ($11,630.00) Cash back from Seller $4, Initial Capital Improvements $0.00 Initial Capital Reserves Deposited Additional Upfront Fee to Buyer (Op $0.00 $0.00 TOTAL CASH OUTLAY ($96,940.00) Year (End) /01/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/ /1/2026 Initial Outlay -96,940 Additional Capital Improvements Total Cash Outlay -96,940-96,940-96,940-96,940-96,940-96,940-96,940-96,940-96,940-96,940-96,940 Gross Operating Income 85,140 86,843 88,580 90,351 92,158 94,001 95,881 97,799 99, ,750 Gross Operating Expenses 23,580 24,052 24,533 25,023 25,524 26,034 26,555 27,086 27,628 28,180 Net Operating Income 61,560 62,791 64,047 65,328 66,635 67,967 69,327 70,713 72,127 73,570 Debt Service -27,772-27,772-27,772-27,772-27,772-27,772-27,772-27,772-27,772-27,772 Cashflow (pre-tax) 33,788 35,019 36,275 37,556 38,863 40,195 41,555 42,941 44,355 45,798 Pre-Tax Cash-on-Cash Return 34.85% 36.12% 37.42% 38.74% 40.09% 41.46% 42.87% 44.30% 45.76% 47.24% Income Taxes (Credits) Cashflow (after-tax) 33,788 35,019 36,275 37,556 38,863 40,195 41,555 42,941 44,355 45,798 After-Tax Cash-on-Cash Return 34.85% 36.12% 37.42% 38.74% 40.09% 41.46% 42.87% 44.30% 45.76% 47.24% Proceeds of Sale (pre-tax) 405,741 Capital Gains Taxes 0 Proceeds of Sale (after-tax) 405,741 Total Cashflows (pre-tax) 33,788 35,019 36,275 37,556 38,863 40,195 41,555 42,941 44, ,539 Cumulative Pre-Tax Cash-on-Cash Return (ROI) 34.85% 70.98% % % % % % % % % Total Cashflows (after-tax) 33,788 35,019 36,275 37,556 38,863 40,195 41,555 42,941 44, ,539 Cumulative After-Tax Cash-on-Cash Return (ROI) 34.85% 70.98% % % % % % % % % Reserves Balance Total Cash Position (inc Reserves) * -96,940-63,152-28,133 8,142 45,698 84, , , , , ,146 Total Equity Position (Inc Reserves) 89, , , , , , , , , , ,145 Return on Equity (ROE) * 13.38% 12.90% 12.47% 12.07% 11.70% 11.36% 11.04% 10.74% 10.46% 10.20% *pre-tax Year (End) Initial Outlay Additional Capital Improvements Income Taxes (Credits) Cashflow (after-tax) After-Tax Cash-on-Cash Return Proceeds of Sale (pre-tax) Capital Gains Taxes Proceeds of Sale (after-tax) Total Cashflows (pre-tax) Cumulative Pre-Tax Cash-on-Cash Return (ROI) Total Cashflows (after-tax) Cumulative After-Tax Cash-on-Cash Return (ROI) Reserves Balance Total Cash Position (inc Reserves) * Total Equity Position (Inc Reserves) Return on Equity (ROE) * *pre-tax Cash-on-Cash vs. ROE Cumulative Cash/Cash Return (After-Tax) 50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Cash-on-Cash Return (pre-tax) Return on Equity (pre-tax) % % % % % % % % % 0.00% Point where line passes 100% equals full return of investment