new hacienda de milargos · 2020. 10. 18. · biel- westermeyer 520 850 8080 [email protected] 13...
TRANSCRIPT
Biel- Westermeyer
520 850 8080
13 Units in redevelopment area
Hacienda de Milargos
437 W Miiracle Mile
Tucson AZ 85705
C-2 zoning
Presented by
2020 Velocity llc
4760 N Oracle rd suite 130
Cash flow
Value Add Opportunity
Opportunity zone
Tucson, AZ 85737
Prepared for
Marketing Package
Potential Rental Income 102,600$ Purchase/Asking Price 575,000$ Property Type Apartments
Other Income - Improvements 65,000 No. of Units 13
Total Vacancy and Credits (5,130) Other - Price Per Unit 49,673$
Operating Expenses (35,970)$ Closing Costs 5,750 Total Sq Ft -
Annual Reserves: $ Finance Points - Price Per Sq Ft $
Net Operating Income (NOI) 61,500$ Income per Unit 7,892$
MIP Payments $ Total Acquisition Cost 645,750$ Expenses per Unit (2,767)$
Annual Reserves: $ Debt Service: $
Mortgage (s) $
Cash Flow Before Taxes 61,500$
(16,342) Down Payment / Investment 645,750$
Cash Flow After Taxes 45,158$
% of Asking % of Cost
Rental Growth Rate: 2.00% Down Payment: 645,750$ 112.30% 100.00%
Expense Growth Rate: 1.00% Initial Loan Balance: $ 0.00% 0.00%
Capitalization Rate (Resale): 7.00%
Marginal Tax Rate: 0.00% Loan Amount Interest Rate Term Payment
Capital Gain Tax Rate: 0.00% $ 0.00% 0 $0
$ 4.50% 0 $0
$ 4.50% 0 $0
Year 1 Year 3 Year 7
Debt Coverage Ratio (DCR) - - -
Loan-to-Value Ratio (LVR) 0.0% 0.0% 0.0%
Capitalization Rate Based on Cost 9.52% 10.02% 11.09%
Capitalization Rate Based on Resale Price 7.00% 7.00% 7.00%
Gross Rent Multiplier 5.60 8.66 8.85
13.50% 143,803 102,347 40,343
10.00% 154,069 129,205 86,867
Cash on Cash Return - Before Taxes 9.52% 10.02% 11.09%
Cash on Cash Return - After Taxes 6.99% 7.35% 8.01%
Internal Rate of Return - Before Taxes 19.67% 14.74%
Internal Rate of Return - After Taxes 17.31% 12.37%
18.24% 12.10%
16.36% 10.64%
Financial Measurements Notes / Discussion
Loan InformationAssumptions
The information, calculations and data presented in this report are believed to be accurate but are not guaranteed. The information contained in this report shall not be considered as
a substitution for legal, accounting or other professional advice. Please seek proper legal and tax advice as appropriate before making investments.
Modified Internal Rate of Return - Before Taxes
Modified Internal Rate of Return - After Taxes
Net Present Value (NPV) - B/ Taxes
Net Present Value (NPV) - A/Taxes
Disclaimer: All information presented is believed to be accurate.
Income Taxes: Benefit (Expense) @ 0%
Hacienda de Milargos
437 W Miiracle Mile
Tucson AZ 85705
Income, Expenses & Cash Flow
Biel- Westermeyer
2020 Velocity llc
520 850 8080
Property Overview
Cash Flow Analysis Hacienda de Milargos
437 W Miiracle Mile
Tucson AZ 85705
Potential Rental Income 102,600$ 104,652$ 106,745$ 108,880$ 111,058$
Less: Vacancy & Credit Losses (5,130) (5,233) (5,337) (5,444) (5,553)
Effective Gross Income 97,470$ 99,419$ 101,408$ 103,436$ 105,505$
Less: Operating Expenses (35,970) (36,330) (36,693) (37,060) (37,431)
Net Operating Income (NOI) 61,500$ 63,090$ 64,715$ 66,376$ 68,074$
Less: Annual Debt Service - - - - -
CASH FLOW Before Taxes 61,500$ 63,090$ 64,715$ 66,376$ 68,074$
Projected Sales Price 878,571$ 901,281$ 924,497$ 948,229$ 972,488$
Less: Selling Expenses (43,929) (45,064) (46,225) (47,411) (48,624)
Adjusted Projected Sales Price 834,643$ 856,217$ 878,272$ 900,817$ 923,863$
Less: Mortgage(s) Balance Payoff - - - - -
SALE PROCEEDS Before Taxes 834,643$ 856,217$ 878,272$ 900,817$ 923,863$
Cash Generated in Current Year 45,158$ 46,450$ 47,457$ 48,487$ 49,540$
Cash Generated in Previous Years n/a 45,158 91,608 139,065 187,552
Cash Generated from Property Sale 834,643 856,217 878,272 900,817 923,863
Original Initial Investment (645,750) (645,750) (645,750) (645,750) (645,750)
234,051$ 302,075$ 371,587$ 442,620$ 515,206$
Capitalization Rate Based on Cost 9.52% 9.77% 10.02% 10.28% 10.54%
Capitalization Rate Based on Resale Price 7.00% 7.00% 7.00% 7.00% 7.00%
Break-Even Ratio 35.06% 34.71% 34.37% 34.04% 33.70%
Operating Expense Ratio 36.90% 36.54% 36.18% 35.83% 35.48%
Net Present Value (NPV) - Before Taxes 13.50% 143,803 122,058 102,347 84,483 68,296
Cash-on-Cash Return with Equity 36.24% 8.15% 8.12% 8.09% 8.06%
Cash-on-Cash Return - Before Taxes 9.52% 9.77% 10.02% 10.28% 10.54%
Internal Rate-of-Return (IRR) - Before Taxes 38.78% 24.17% 19.67% 17.48% 16.19%
Modified Internal Rate-of-Return (MIRR) - Before Taxes 38.78% 23.24% 18.24% 15.68% 14.08%
Financial Measurements
Year 4 Year 5
Cash Position
Rental Activity Analysis
Total Potential CASH Generated
Year 3Year 2
Property Resale Analysis
Year 1
Biel- Westermeyer
520 850 8080
10/17/2020 12:45 PM © 1993 - 2020 Cash Flow Analyzer® https://RentalSoftware.com
Hacienda de Milargos
437 W Miiracle Mile
Tucson AZ 85705
Per unit Total Percent of Monthly Rent Monthly Annual
Sq Ft Sq Ft Total Rev/ Sq Ft Per Unit Rent Rent
2 story 1br 1 0 0 0.00% 0.000 750$ 750$ 9,000$
1br 4 0 0 0.00% 0.000 675$ 2,700$ 32,400$
Studio 6 0 0 0.00% 0.000 625$ 3,750$ 45,000$
Studio (New) 1 0 0 0.00% 0.000 625$ 625$ 7,500$
1br Casita (detached) 1 0 0 0.00% 0.000 725$ 725$ 8,700$
0 0 0 0 0.00% 0.000 $ $ $
Totals 13 1 0 0.0% 0.000 3,400 8,550$ 102,600$
Biel- Westermeyer
520 850 8080
Unit DescriptionNumber of
Units
7%
31%
46%
8%
8%
Unit Mix
2 story 1br
1br
Studio
Studio (New)
1br Casita (detached)
Hacienda de Milargos
437 W Miiracle Mile
Tucson AZ 85705
% of % of
Expenses Revenue
250 1.0% 19.23 - 0.7% 0.3%
500 1.0% 38.46 - 1.4% 0.5%
1,500 1.0% 115.38 - 4.2% 1.5%
1,700 1.0% 130.77 - 4.7% 1.7%
600 1.0% 46.15 - 1.7% 0.6%
500 1.0% 38.46 - 1.4% 0.5%
2,400 1.0% 184.62 - 6.7% 2.5%
7,670 1.0% 590.00 - 21.3% 7.9%
450 1.0% 34.62 - 1.3% 0.5%
2,000 1.0% 153.85 - 5.6% 2.1%
500 1.0% 38.46 - 1.4% 0.5%
3,800 1.0% 292.31 - 10.6% 3.9%
1,200 1.0% 92.31 - 3.3% 1.2%
7,200 1.0% 553.85 - 20.0% 7.4%
1,800 1.0% 138.46 - 5.0% 1.8%
3,900 1.0% 300.00 - 10.8% 4.0%
35,970$ 2,767$ - 100.0% 36.9%Total Annual Operating Expenses
Repairs
Supplies
Electricity
Water
Gas
Trash Removal
Management
Annual
Increase
Accounting
Insurance
Per UnitExpense Description
Maintenance
Landscaping
Pest Control
Legal
Property Taxes
Biel- Westermeyer
520 850 8080
Per Sq Ft
Cleaning
Advertising
Annual
Amount
Annual Property Operating Data Hacienda de Milargos
437 W Miiracle Mile
Tucson AZ 85705 Biel- Westermeyer
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 102,600$ 0.00 657.69 104,652$ 0.00 670.85 106,745$ 0.00 684.26 108,880$ 0.00 697.95 111,058$ 0.00 711.91
Less: Vacancy & Credit Losses (5,130) 0.00 -32.88 (5,233) 0.00 -33.54 (5,337) 0.00 -34.21 (5,444) 0.00 -34.90 (5,553) 0.00 -35.60
97,470$ 0.00 624.81 99,419$ 0.00 637.30 101,408$ 0.00 650.05 103,436$ 0.00 663.05 105,505$ 0.00 676.31
Accounting 250 0.00 1.60 253 0.00 1.62 255 0.00 1.63 258 0.00 1.65 260 0.00 1.67
Advertising 500 0.00 3.21 505 0.00 3.24 510 0.00 3.27 515 0.00 3.30 520 0.00 3.34
Cleaning 1,500 0.00 9.62 1,515 0.00 9.71 1,530 0.00 9.81 1,545 0.00 9.91 1,561 0.00 10.01
Insurance 1,700 0.00 10.90 1,717 0.00 11.01 1,734 0.00 11.12 1,752 0.00 11.23 1,769 0.00 11.34
Landscaping 600 0.00 3.85 606 0.00 3.88 612 0.00 3.92 618 0.00 3.96 624 0.00 4.00
Legal 500 0.00 3.21 505 0.00 3.24 510 0.00 3.27 515 0.00 3.30 520 0.00 3.34
Maintenance 2,400 0.00 15.38 2,424 0.00 15.54 2,448 0.00 15.69 2,473 0.00 15.85 2,497 0.00 16.01
Management 7,670 0.00 49.17 7,747 0.00 49.66 7,824 0.00 50.15 7,902 0.00 50.66 7,981 0.00 51.16
Pest Control 450 0.00 2.88 455 0.00 2.91 459 0.00 2.94 464 0.00 2.97 468 0.00 3.00
Repairs 2,000 0.00 12.82 2,020 0.00 12.95 2,040 0.00 13.08 2,061 0.00 13.21 2,081 0.00 13.34
Supplies 500 0.00 3.21 505 0.00 3.24 510 0.00 3.27 515 0.00 3.30 520 0.00 3.34
Property Taxes 3,800 0.00 24.36 3,838 0.00 24.60 3,876 0.00 24.85 3,915 0.00 25.10 3,954 0.00 25.35
Gas 1,200 0.00 7.69 1,212 0.00 7.77 1,224 0.00 7.85 1,236 0.00 7.93 1,249 0.00 8.00
Electricity 7,200 0.00 46.15 7,272 0.00 46.62 7,345 0.00 47.08 7,418 0.00 47.55 7,492 0.00 48.03
Trash Removal 1,800 0.00 11.54 1,818 0.00 11.65 1,836 0.00 11.77 1,855 0.00 11.89 1,873 0.00 12.01
Water 3,900 0.00 25.00 3,939 0.00 25.25 3,978 0.00 25.50 4,018 0.00 25.76 4,058 0.00 26.02
35,970$ 0.00 230.58 36,330$ 0.00 232.88 36,693$ 0.00 235.21 37,060$ 0.00 237.56 37,431$ 0.00 239.94
61,500$ 0.00 394.23 63,090$ 0.00 404.42 64,715$ 0.00 414.84 66,376$ 0.00 425.49 68,074$ 0.00 436.37
Cash Flow Before Taxes 61,500$ 0.00 394.23 63,090$ 0.00 404.42 64,715$ 0.00 414.84 66,376$ 0.00 425.49 68,074$ 0.00 436.37
Net Operating Income (NOI)
Total Operating Expenses
Operating Expenses
Effective Gross Income
520 850 8080
© 1993 - 2020 Cash Flow Analyzer® https://RentalSoftware.com
Hacienda de Milargos
Biel- Westermeyer
520 850 8080
Time Net Operating Debt Cash Flow Incomes Cash Flow
Period Income Service Before Tax Taxes After Tax
Int Investment (645,750)$ (645,750)$
Year 1 61,500 - - 61,500 (16,342) 45,158
Year 2 63,090 - - 63,090 (16,640) 46,450
Year 3 64,715 - - 64,715 (17,258) 47,457
Year 4 66,376 - - 66,376 (17,889) 48,487
Year 5 68,074 - - 68,074 (18,534) 49,540
437 W Miiracle Mile
Tucson AZ 85705
MIP Payments
$
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
1 2 3 4 5
Cash Flow After Taxes
Cash Flow Before Taxes
© 1993 - 2020 Cash Flow Analyzer® https://RentalSoftware.com
Hacienda de Milargos
437 W Miiracle Mile
Tucson AZ 85705 Biel- Westermeyer
520 850 8080
Time Initial Investment Cash Flow Cash on Cash Income Cash Flow Cash on Cash
Period Adj for Refinance Before Taxes Before Taxes Taxes After Taxes After Taxes
Year 1 645,750$ 61,500$ 9.52% (16,342)$ 45,158$ 6.99%
Year 2 645,750 63,090 9.77% (16,640) 46,450 7.19%
Year 3 645,750 64,715 10.02% (17,258) 47,457 7.35%
Year 4 645,750 66,376 10.28% (17,889) 48,487 7.51%
Year 5 645,750 68,074 10.54% (18,534) 49,540 7.67%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
1 2 3 4 5
After Taxes
Before Taxes
© 1993 - 2020 Cash Flow Analyzer® https://RentalSoftware.com
Hacienda de Milargos
437 W Miiracle Mile
Tucson AZ 85705 Biel- Westermeyer
520 850 8080
Time Net Operating Cap Rate on Cost Resale
Period Income (NOI) 645,750$ Value
Year 1 61,500$ 9.52% 878,571$
Year 2 63,090 9.77% 901,281
Year 3 64,715 10.02% 924,497
Year 4 66,376 10.28% 948,229
Year 5 68,074 10.54% 972,488
9.00%
9.20%
9.40%
9.60%
9.80%
10.00%
10.20%
10.40%
10.60%
1 2 3 4 5
© 1993 - 2020 Cash Flow Analyzer® https://RentalSoftware.com
Hacienda de Milargos
437 W Miiracle Mile
Tucson AZ 85705 Biel- Westermeyer
520 850 8080
Time Projected Adj Projected Refi Proceeds Mortgage(s) Sale Proceeds Income Taxes Sale Proceeds Property Year / Year
Period Resale Value Increase (if any) Balance Payoff Before Taxes From Sale After Taxes Equity Equity Increase
Year 1 834,643$ 45.16% $ $ 834,643$ $ 834,643$ 834,643$ 188,893$
Year 2 856,217 2.58% - - 856,217 - 856,217 856,217 21,575
Year 3 878,272 2.58% - - 878,272 - 878,272 878,272 22,055
Year 4 900,817 2.57% - - 900,817 - 900,817 900,817 22,545
Year 5 923,863 2.56% - - 923,863 - 923,863 923,863 23,046
$780,000
$800,000
$820,000
$840,000
$860,000
$880,000
$900,000
$920,000
$940,000
1 2 3 4 5
© 1993 - 2020 Cash Flow Analyzer® https://RentalSoftware.com
Hacienda de Milargos
437 W Miiracle Mile
Tucson AZ 85705 Biel- Westermeyer
520 850 8080
Before Taxes After Taxes
Year 1 38.78% 36.24%
Year 2 24.17% 21.78%
Year 3 19.67% 17.31%
Year 4 17.48% 15.13%
Year 5 16.19% 13.84%
Internal Rate of Return (IRR)Time Period
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
1 2 3 4 5
IRR After Tax
IRR Before Tax
© 1993 - 2020 Cash Flow Analyzer® https://RentalSoftware.com
Hacienda de Milargos
437 W Miiracle Mile
Tucson AZ 85705 Biel- Westermeyer
520 850 8080
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 1 102,600 (35,970) 95.00% 35.06% 64.94% 72.82% 27.18%
Year 2 104,652 (36,330) 95.00% 34.71% 65.29% 71.74% 28.26%
Year 3 106,745 (36,693) 95.00% 34.37% 65.63% 70.67% 29.33%
Year 4 108,880 (37,060) 95.00% 34.04% 65.96% 69.62% 30.38%
Year 5 111,058 (37,431) 95.00% 33.70% 66.30% 68.59% 31.41%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
1 2 3 4 5
BreakEven Occupancy
BreakEven Occupancy with Cash on Cash Requirment
© 1993 - 2020 Cash Flow Analyzer® https://RentalSoftware.com