package of three singlefamily houses...b market rents are $850/month b new hvac in 2018 b located...

Price: $285,000

Package of Three SingleFamily Houses| Huntsville, AL

Prepared By

Len Johnson, CREBroker/[email protected]

1200 Winner Avenue, Suite BHuntsville, Alabama 35805www.gatewayalabamarealty.com

PROPERTY HIGHLIGHTS

Wellmaintained with recent improvements●

Properties have longterm tenants; current rents are below market●

All are convenient to Toyota Motor Manufacturing, Facebook DataCenter, and other industry

●

Colfax Road property adjoins the Johnson High Schoolredevelopment site

●

PROPERTY DESCRIPTIONHenry Investment PortfolioHuntsville, AL


Portfolio OverviewGateway Alabama Realty Group, LLC is pleased to offer this portfolio of 3 singlefamily houses, alllocated in Huntsville, AL.

The properties are conveniently located to local universities, Toyota Motor Manufacturing, FacebookData Center, and other industries in this fast growing area of Alabama.

The houses are located at 6117 Colfax Road, 5015 Paden Drive, and 3707 Steadman Drive, Huntsville,AL.

Page 02

6117 COLFAX ROAD, HUNTSVILLE, AL Henry Investment PortfolioHuntsville, AL


Property Highlightsb Lot backs up to the Johnson High School redevelopment site (see https://www.waaytv.com/content/news/New

housestobebuiltbehindoldJOJohnsonHighSchool561582141.html)

b New water heater in 2018

b Long term tenant at $650/month

b Market rent is $795/month

Property Facts

Building Size 1500 Sq. Ft.

Construction Type Wood Frame with Brick

Lot Size 10,000 Sq. Ft.

Property Type Residential

Roof Gabled, Shingles

Year Built 1966

Sewer/Water Public

Bedrooms/Bath 3/1

Page 03

5015 PADEN DRIVE, HUNTSVILLE, ALHenry Investment PortfolioHuntsville, AL


Property Highlightsb Wellmaintained

b Long term tenant at $755/month

b Market rents are $850/month

b New HVAC in 2018

b Located near the Johnson High School Redevelopment site

Property Facts


Construction Type Wood Frame with Brick



Roof Gabled, shingles

Year Built 1965

Sewer/Water Public

Bedrooms/Bath 3/1.5

Page 04

3707 STEADMAN DRIVE, HUNTSVILLE, ALHenry Investment PortfolioHuntsville, AL


Property Highlightsb Section 8 property

b Currently rents for $825, increasing to $863 in Apr 2020

b Long term tenant (9+ years)

b Within walking distance to the new Ronald E. McNair Junior High and Jemison High School

Property Facts


Construction Type Wood Frame with 1/2 Brick and 1/2 Siding



Roof Gabled, shingles

Year Built 1968

Sewer/Water Public

Bedrooms/Bath 4/1.5

Page 05

5015 Paden Bonus Room 5015 Paden Kitchen

5015 Paden Kitchen 5015 Paden Living Room

5015 Paden Back Patio 5015 Paden Living Rm to Bonus Room

PROPERTY PHOTOSHenry Investment PortfolioHuntsville, AL

Page 06

INITIAL INVESTMENTPurchase Price $285,000 + Acquisition Costs $5,700 - Mortgage(s) $228,000 + Loan Fees Points $2,280 Initial Investment $64,980

MORTGAGE DATA 1ST LIENLoan Amount $228,000 Interest Rate 4.250% Amortization Period 20 Years Periodic Payment $1,412 Annual Debt Service $16,942

CASH FLOW

For the Year EndingYear 1

Feb-2021Year 2

Feb-2022Year 3

Feb-2023Year 4

Feb-2024Year 5

Feb-2025

POTENTIAL RENTAL INCOME (PRI) $30,540 $31,456 $32,400 $33,372 $34,373 - Vacancy / Credit Loss $916 $944 $972 $1,001 $1,031 EFFECTIVE RENTAL INCOME $29,624 $30,512 $31,428 $32,371 $33,342 + Other Income $0 $0 $0 $0 $0 GROSS OPERATING INCOME (GOI) $29,624 $30,512 $31,428 $32,371 $33,342 - Operating Expenses $7,081 $7,293 $7,512 $7,738 $7,970 NET OPERATING INCOME (NOI) $22,543 $23,219 $23,916 $24,633 $25,372

NET OPERATING INCOME (NOI) $22,543 $23,219 $23,916 $24,633 $25,372 - Capital Expenses / Replacement Reserves $0 $0 $0 $0 $0 - Annual Debt Service 1st Lien $16,942 $16,942 $16,942 $16,942 $16,942 CASH FLOW BEFORE TAXES $5,601 $6,277 $6,974 $7,691 $8,430

Loan Balance $220,605 $212,889 $204,839 $196,440 $187,677 Loan-to-Value (LTV) - 1st Lien 76.07% 71.2% 66.51% 61.97% 57.39% Debt Service Coverage Ratio 1.33 1.37 1.41 1.45 1.50 Before Tax Cash on Cash 8.62% 9.66% 10.73% 11.84% 12.97%

SALES PROCEEDSProjected Sales Price (EOY 5) $327,000

Cost of Sale $16,350 Mortgage Balance 1st Lien $187,677

Sales Proceeds Before Tax $122,973

INVESTMENT PERFORMANCEInternal Rate of Return (IRR) 21.90% Acquisition CAP Rate 7.91% Year 1 Cash-on-Cash 8.62% Gross Rent Multiplier 9.33 Loan to Value 75.15% Debt Service Coverage Ratio 1.33

HHeennrryy IInnvveessttmmeenntt 33 SSFF HHoouusseessSteadman, Colfax and Paden

55--YYeeaarr CCaasshh FFllooww AAnnaallyyssiiss

Fiscal Year Beginning March 2020

Len Len Johnson, BrokerJohnson, BrokerGateway Alabama Realty Group, LLCGateway Alabama Realty Group, LLC1200 Winner Avenue, Huntsville AL 35805

Phone: 256.509.2078 © Copyright 2011-2020 CRE Tech, Inc. All Rights Reserved.

Email: [email protected]

DISCLAIMER: Year 5 sales price based on estimated NOI in year 6. All information is based on estimated forecast and are intended for the purpose of example projections and analysis. The information presented herein is provided as is, without warranty of any kind. Gateway Alabama Realty Group, LLC nor CRE Tech, Inc. assume any liability for errors or omissions. This information is not intended to replace or serve as substitute for any legal, investment, real estate or other professional advice, consultation or service.

5-YEAR EQUITY YIELD & EFFECTIVE LOAN RATEUnleveraged Investment

Cash Flow & 5-year Yield

N $

0 ($290,700)

1 $22,543

2 $23,219

3 $23,916

4 $24,633

5 $336,022

+Financing Cash Flow

& Effective Rate

N $

0 $225,720

1 ($16,942)

2 ($16,942)

3 ($16,942)

4 ($16,942)

5 ($204,619)

=Equity Investment

Cash Flow & 5-year Yield

N $

0 ($64,980)

1 $5,601

2 $6,277

3 $6,974

4 $7,691

5 $131,403

ASSUMPTION / INPUTSPurchase Price $285,000 Year 1 Potential Income $30,540 Vacancy & Credit Loss 3.00% Year 1 Expenses $7,081 Acquisition CAP Rate 7.91% Sale Price - CAP Rate 8.00%

Acquisition Costs 2.00% Annual Income Increase 3.00% Other Income Increase 3.00% Annual Expense Increase 3.00% Loan Fees Points 1.00% Cost of Sale upon Disposition 5.00%

Property IRR/Yield = 9.33% Effective Loan Rate = 4.42% Equity IRR/Yield = 21.90%

Positive Leverage! Leverage INCREASED the Yield by 12.57%

56%

23%

3%

18%

Cash Flow $ 5,601

Debt Service Expenses Cash FlowVacancy

0.00

13.00

26.00

CAP Rate Cash-on-Cash IRR

7.91 8.62

21.90

Investment Performance (%)


55--YYeeaarr CCaasshh FFllooww AAnnaallyyssiiss






Year Year 1 Year 2 Year 3 Year 4 Year 5Before Tax Cash on Cash Return 8.62% 9.66% 10.73% 11.84% 12.97%

Annual Cash-on-Cash Dividend Return

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

1 2 3 4 5

Before Tax Cash on Cash Retum


CCaasshh--oonn--CCaasshh AAnnaallyyssiiss






Before Tax Optimal Holding Period 5 Years Before Tax Optimal Hold Annual Yield 21.9%

Year of Sale Year 1 Year 2 Year 3 Year 4 Year 5Before Tax EQUITY Yield (IRR) N/A 13.56% 19.25% 21.16% 21.90%

Optimal Holding Period by Annual Equity Yield (IRR)

0.00%

13.00%

26.00%

Holding Period/Year of Sale

1 2 3 4 5

0.00%

13.56%

19.25%

21.16%21.90%

Before Tax EQUITY Yield (IRR)


OOppttiimmaall HHoollddiinngg PPeerriioodd AAnnaallyyssiiss






package of three singlefamily houses...b market rents are $850/month b new hvac in 2018 b located...

Documents