the village at centre point 4-plex sam newell - investment ...€¦ · appreciation rate 2.5%...

Property Report

The Village at Centre Point 4-Plex3547 N Eagle RoadMeridian, ID 83646

Presented by:

Sam Newell - Investment SpecialistRE/MAX Equity/Silvercreek Realty295 W Center St Suite A/1099 S Wells St #200

Provo/Meridian, UT/ID 84601/83642Mobile: 801-995-2220

sam@fig.uswww.fig.us

FIG Disclaimer:* No investments are guaranteed to result in profits. Net operating income, cap rates, and internal rates of return are subject to fluctuation and may experience a wide range of change, including the potential for operating losses. Factors affecting investment returns include, without limitation, changes in interest rates, tenant vacancies and defaults, property management expenses, repair and maintenance costs, HOA expenses, litigation, insurance rates, and relative strength and weakness in the local and regional economy. Past performance is not a guarantee of future returns. FIG does not provide tax or legal advice, and none of the

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OverviewThe Village at Centre Point 4-Plex3547 N Eagle RoadMeridian, ID 83646

Sam Newell - Investment Specialist801-995-2220

sam@fig.uswww.fig.us

Purchase InfoSquare Feet (4 Units) 6,837Initial Market Value $750,000Purchase Price $680,000Initial Cash Invested $197,000

Income Analysis Monthly AnnualNet Operating Income $3,755 $45,056Cash Flow $938 $11,261

Financial MetricsCap Rate (Purchase Price) 6.6%Cash on Cash Return (Year 1) 5.7%Internal Rate of Return (Year 10) 14.7%Sale Price (Year 10) $960,063

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Purchase AnalysisThe Village at Centre Point 4-Plex3547 N Eagle RoadMeridian, ID 83646

Sam Newell - Investment Specialist801-995-2220

sam@fig.uswww.fig.us

Purchase InfoInitial Market Value $750,000Purchase Price $680,000- First Mortgage -$510,000- Second Mortgage -$0= Downpayment $170,000+ Buying Costs $27,000+ Initial Improvements $0= Initial Cash Invested $197,000Square Feet (4 Units) 6,837Cost per Square Foot $99Monthly Rent per Square Foot $0.80Cost per Unit $170,000Average Monthly Rent per Unit $1,369

Mortgages First SecondLoan-To-Cost Ratio 75% 0%Loan-To-Value Ratio 68% 0%Loan Amount $510,000 $0Loan Type AmortizingTerm 30 YearsInterest Rate 5.25%Payment $2,816.24 $0.00

Financial Metrics (Year 1)Annual Gross Rent Multiplier 10.4Operating Expense Ratio 33.1%Debt Coverage Ratio 1.33Cap Rate (Purchase Price) 6.6%Cash on Cash Return 5.7%

AssumptionsAppreciation Rate 2.5%Vacancy Rate 3.0%Income Inflation Rate 2.5%Expense Inflation Rate 3.0%LTV for Refinance 70.0%Selling Costs $52,500

Income Monthly AnnualGross Rent $5,475 $65,700Vacancy Loss -$164 -$1,971Technology Package $300 $3,600Operating Income $5,611 $67,329

Expenses (% of Income) Monthly AnnualCleaning & Maintenance (1%) -$75 -$900Insurance (1%) -$58 -$700Management Fees (7%) -$393 -$4,713Taxes (11%) -$630 -$7,560Association Fees (12%) -$700 -$8,400Operating Expenses (33%) -$1,856 -$22,273

Net Performance Monthly AnnualNet Operating Income $3,755 $45,056- Mortgage Payments -$2,816 -$33,795- Year 1 Improvements -$0 -$0= Cash Flow $938 $11,261

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Buy and Hold ProjectionThe Village at Centre Point 4-Plex3547 N Eagle RoadMeridian, ID 83646

Sam Newell - Investment Specialist801-995-2220

sam@fig.uswww.fig.us

Income Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Gross Rent $65,700 $67,342 $69,026 $72,521 $82,050 $105,031 $134,449Vacancy Loss -$1,971 -$2,020 -$2,071 -$2,176 -$2,462 -$3,151 -$4,033Technology Package $3,600 $3,690 $3,782 $3,974 $4,496 $5,755 $7,367Operating Income $67,329 $69,012 $70,738 $74,319 $84,085 $107,636 $137,783

Expenses Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Cleaning & Maintenance -$900 -$927 -$955 -$1,013 -$1,174 -$1,578 -$2,121Insurance -$700 -$721 -$743 -$788 -$913 -$1,227 -$1,650Management Fees -$4,713 -$4,831 -$4,952 -$5,202 -$5,886 -$7,534 -$9,645Taxes -$7,560 -$7,787 -$8,020 -$8,509 -$9,864 -$13,257 -$17,816Association Fees -$8,400 -$8,652 -$8,912 -$9,454 -$10,960 -$14,729 -$19,795Operating Expenses -$22,273 -$22,918 -$23,581 -$24,966 -$28,798 -$38,326 -$51,026

Income Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Net Operating Income $45,056 $46,095 $47,156 $49,352 $55,287 $69,309 $86,756- Mortgage Payments -$33,795 -$33,795 -$33,795 -$33,795 -$33,795 -$33,795 -$33,794- Improvements -$0 -$0 -$0 -$0 -$0 -$0 -$0= Cash Flow $11,261 $12,300 $13,362 $15,558 $21,492 $35,515 $52,963Cap Rate (Purchase Price) 6.6% 6.8% 6.9% 7.3% 8.1% 10.2% 12.8%Cap Rate (Market Value) 5.9% 5.8% 5.8% 5.8% 5.8% 5.6% 5.5%Cash on Cash Return 5.7% 6.2% 6.8% 7.9% 10.9% 18.0% 26.9%Return on Equity 4.2% 4.2% 4.2% 4.1% 4.0% 3.7% 3.4%

Loan Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Market Value $768,750 $787,969 $807,668 $848,556 $960,063 $1,228,962 $1,573,176- Loan Balance -$502,809 -$495,231 -$487,245 -$469,962 -$417,936 -$262,484 -$0= Equity $265,941 $292,738 $320,423 $378,594 $542,127 $966,478 $1,573,176Loan-to-Value Ratio 65.4% 62.8% 60.3% 55.4% 43.5% 21.4% 0.0%Potential Cash-Out Refi $35,316 $56,347 $78,123 $124,027 $254,108 $597,790 $1,101,223

Sale Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Equity $265,941 $292,738 $320,423 $378,594 $542,127 $966,478 $1,573,176- Selling Costs -$53,812 -$55,158 -$56,537 -$59,399 -$67,204 -$86,027 -$110,122= Proceeds After Sale $212,129 $237,580 $263,886 $319,195 $474,923 $880,451 $1,463,053+ Cumulative Cash Flow $11,261 $23,561 $36,922 $66,927 $162,256 $451,762 $899,741- Initial Cash Invested -$197,000 -$197,000 -$197,000 -$197,000 -$197,000 -$197,000 -$197,000= Net Profit $26,390 $64,141 $103,809 $189,122 $440,179 $1,135,213 $2,165,794Internal Rate of Return 13.4% 15.5% 15.9% 15.7% 14.7% 13.2% 12.5%Return on Investment 13% 33% 53% 96% 223% 576% 1,099%

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GraphsThe Village at Centre Point 4-Plex3547 N Eagle RoadMeridian, ID 83646

Sam Newell - Investment Specialist801-995-2220

sam@fig.uswww.fig.us

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Rent RollThe Village at Centre Point 4-Plex3547 N Eagle RoadMeridian, ID 83646

Sam Newell - Investment Specialist801-995-2220

sam@fig.uswww.fig.us

Unit Description Square Feet Units of This Type Rent (Per Unit)2 Story 2 Car Garage Unit 1,398 1 $1,350 Per Month

3 Story 1 Car Garage Unit 1,813 3 $1,375 Per Month

Totals for Year 1Total Number of Units 4Total Area (Sum of Units) 6,837 Square FeetTotal Rent (Sum of Units) $5,475 Per Month, $65,700 Per Year

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PhotosThe Village at Centre Point 4-Plex3547 N Eagle RoadMeridian, ID 83646

Sam Newell - Investment Specialist801-995-2220

sam@fig.uswww.fig.us

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PhotosThe Village at Centre Point 4-Plex3547 N Eagle RoadMeridian, ID 83646

Sam Newell - Investment Specialist801-995-2220

sam@fig.uswww.fig.us

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