| Detailed Rental Investment Report Sparks, NV |
| Property Information | |||
| Property Purchase / List Price | $ 11,000,000.00 | ||
| Closing Costs and Prepaids | $ 35,000.00 | ||
| TOTAL | $ 11,035,000.00 | ||
| Annual Loan Payments | $ 791,406.00 | ||
| Appraised / Estimated Property Value | $ 11,050,000.00 | ||
| Price Per Unit @ 249 units | $ 44,176.71 | ||
| Down Payment | $ 35,000.00 | ||
| Loan Amount | $ 11,000,000.00 | ||
| TOTAL | $ 11,035,000.00 | ||
| Property Income | |||
| Gross Scheduled Income | $ 1,539,840.00 | ||
| Vacancy | $ 76,992.00 | ||
| Concessions | $ 11,549.00 | ||
| Net Rental Income | $ 1,451,299.00 | ||
| Laundry Machines | $ 11,970.00 | ||
| Late Fees / NSF Charges | $ 9,820.00 | ||
| Forfeited Security Dep / Cleaning Fees | $ 25,640.00 | ||
| Application / Term Fees | $ 24,570.00 | ||
| Effective Gross Income | $ 1,523,299.00 |
| Property Expenses | |||
| Office and Administration | $ 44,470.00 | ||
| Advertising, Licenses and Permits | $ 14,650.00 | ||
| Property Insurance | $ 42,835.00 | ||
| Management Fees | $ 45,427.00 | ||
| Payroll | $ 190,890.00 | ||
| Miscellaneous | $ 11,072.00 | ||
| Real Estate Taxes | $ 68,785.00 | ||
| Repairs and Maintenance | $ 76,460.00 | ||
| Services - Trash Removal | $ 21,780.00 | ||
| Utilities - Owner Pd. Sewer | $ 57,820.00 | ||
| Utilities - Owner Paid Gas / Electric | $ 45,400.00 | ||
| Utilities - Owner Pd. Water | $ 48,660.00 | ||
| Other Insurance | $ 10,980.00 | ||
| Vacant Utilities | $ 6,450.00 | ||
| TOTAL | $ 685,679.00 |
| Investment Analysis | |||
| Effective Gross Income | $ 1,523,299.00 | ||
| Total Operating Expenses | $ 685,679.00 | ||
| Net Operating Income | $ 837,620.00 | ||
| Annual Debt Service | $ 791,406.00 | ||
| Before Tax Cash Flow | $ 46,214.00 | ||
| After Tax Cash Flow | $ 36,971.20 | ||
| Expenses % of Gross Scheduled Income | 44.529% | ||
| Expenses % of Effective Gross Income | 45.013% | ||
| Total Expenses + Vacancy | 49.529% | ||
| Effective Gross Income Remaining before Debt Service | 54.987% | ||
| Debt Service Percentage of Gross Scheduled Income | 51.395% | ||
| Debt Service Percentage of Effective Gross Income | 51.953% | ||
| Gross Scheduled Income Remaining after Debt Service | 3.592% | ||
| Effective Gross Income Remaining after Debt Service | 3.034% | ||
| Before Tax Cash Flow Percentage of Gross Scheduled Income | 3.001% | ||
| Before Tax Cash Flow Percentage of Effective Gross Income | 3.034% | ||
| After Tax Cash Flow Percentage of Gross Scheduled Income | 2.401% | ||
| After Tax Cash Flow Percentage of Effective Gross Income | 2.427% |
| Investment Metrics | |||
| Debt Service Coverage Ratio (DSCR) | 1.058 | ||
| Annual Gross Rent Multiplier (GRM) | 7.144 | ||
| Monthly Gross Rent Multiplier (GRM) | 85.723 | ||
| Capitalization Rate (CAP RATE) | 7.615% | ||
| Before Tax Cash-On-Cash Return | 132.040% | ||
| After Tax Cash-On-Cash Return | 105.632% | ||
| Debt to Equity Ratio (DER) | 314.29:1 | ||
| Debt to Value Ratio (DVR) | 220.00:1 | ||
| Loan to Value (LTV) | 99.55% |
| Before Tax Net Present Value | ||||
| TIME | NPV at Year End | Cumulative NPV | ||
| Year 0 | $ -35,000.00 | $ -35,000.00 | ||
| Year 1 | $ 42,012.73 | $ 7,012.73 | ||
| Year 2 | $ 38,193.39 | $ 45,206.12 | ||
| Year 3 | $ 34,721.26 | $ 79,927.38 | ||
| Year 4 | $ 31,564.78 | $ 111,492.16 | ||
| Year 5 | $ 28,695.26 | $ 140,187.42 | ||
| Year 6 | $ 26,086.60 | $ 166,274.02 | ||
| Year 7 | $ 23,715.09 | $ 189,989.11 | ||
| Year 8 | $ 21,559.17 | $ 211,548.28 | ||
| Year 9 | $ 19,599.25 | $ 231,147.53 | ||
| Year 10 | $ 17,817.50 | $ 248,965.02 |
| After Tax Net Present Value | ||||
| TIME | NPV at Year End | Cumulative NPV | ||
| Year 0 | $ -35,000.00 | $ -35,000.00 | ||
| Year 1 | $ 33,610.18 | $ -1,389.82 | ||
| Year 2 | $ 30,554.71 | $ 29,164.89 | ||
| Year 3 | $ 27,777.01 | $ 56,941.90 | ||
| Year 4 | $ 25,251.83 | $ 82,193.73 | ||
| Year 5 | $ 22,956.21 | $ 105,149.94 | ||
| Year 6 | $ 20,869.28 | $ 126,019.21 | ||
| Year 7 | $ 18,972.07 | $ 144,991.29 | ||
| Year 8 | $ 17,247.34 | $ 162,238.62 | ||
| Year 9 | $ 15,679.40 | $ 177,918.02 | ||
| Year 10 | $ 14,254.00 | $ 192,172.02 |
| Tax Implications | |||
| Your Tax Rate | 20.000% | ||
| Taxes | $ 9,242.80 | ||
| After Tax Cash Flow (ATCF) | $ 36,971.20 |
| Comparing Investment Options Investing in real estate carries risks. You should be rewarded for taking that risk. Below is a comparision of the investment property with several "safe" investments which require no work or effort on your part and may even carry FDIC insurance. The real estate investment should beat these investments, otherwise it would be a better idea to just put your money in one of these savings accounts. 1.3204 ***** THIS INVESTMENT PROPERTY ***** 132.04% 0.0505 HSBC Direct Online Savings 5.05% 0.0500 Capital One Money Market 5.00% 0.0450 ING Direct Orange Savings Account 4.50% 0.0020 Bank of America Regular Savings Account 0.20% Note: This was calculated using before tax cash-on-cash return. Disclaimer: All rates subject to change. Buyer Beware... Please Check with the actual bank to determine actual rate. We disclaim all liability for misquoted rates. |