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Transcript of 6 Family Cash Cow · PDF file 6 Family Cash Cow 146 Inslee Place Elizabeth, New Jersey 07206...

  • Property Report

    6 Family Cash Cow 146 Inslee Place

    Elizabeth, New Jersey 07206

    www.RealEstateTools.com © 2010-2015 Real Estate Tools 1

  • Overview 6 Family Cash Cow 146 Inslee Place Elizabeth, New Jersey 07206

    Purchase Info Total Number of Units 6 Purchase Price $625,000 Initial Cash Invested $163,750

    Income Analysis Monthly Annual Net Operating Income $5,271 $63,248 Cash Flow $2,462 $29,540

    Financial Metrics Cap Rate (Purchase Price) 10.1% Cash on Cash Return (Year 1) 18.0% Internal Rate of Return (Year 10) 26.1% Sale Price (Year 10) $839,948

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  • Purchase Analysis 6 Family Cash Cow 146 Inslee Place Elizabeth, New Jersey 07206

    Purchase Info Purchase Price $625,000 - First Mortgage -$468,750 - Second Mortgage -$0 = Downpayment $156,250 + Buying Costs $7,500 + Initial Improvements $0 = Initial Cash Invested $163,750 Total Number of Units 6 Cost per Unit $104,167 Average Monthly Rent per Unit $1,175

    Mortgages First Second Loan-To-Cost Ratio 75% 0% Loan-To-Value Ratio 75% 0% Loan Amount $468,750 $0 Loan Type Amortizing Term 25 Years Interest Rate 5.25% Payment $2,808.97 $0.00

    Financial Metrics (Year 1) Annual Gross Rent Multiplier 7.4 Operating Expense Ratio 21.3% Debt Coverage Ratio 1.88 Cap Rate (Purchase Price) 10.1% Cash on Cash Return 18.0%

    Assumptions Appreciation Rate 3.0% Vacancy Rate 5.0% Income Inflation Rate 3.0% Expense Inflation Rate 3.0% LTV for Refinance 70.0% Selling Costs $43,750

    Income Monthly Annual Gross Rent $7,048 $84,576 Vacancy Loss -$352 -$4,229 Operating Income $6,696 $80,347

    Expenses (% of Income) Monthly Annual Cleaning & Maintenance (2%) -$167 -$2,009 Insurance (6%) -$386 -$4,634 Taxes (11%) -$721 -$8,657 Water/Sewer (2%) -$150 -$1,800 Operating Expenses (21%) -$1,425 -$17,100

    Net Performance Monthly Annual Net Operating Income $5,271 $63,248 - Mortgage Payments -$2,809 -$33,708 - Year 1 Improvements -$0 -$0 = Cash Flow $2,462 $29,540

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  • Buy and Hold Projection 6 Family Cash Cow 146 Inslee Place Elizabeth, New Jersey 07206

    Income Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Gross Rent $84,576 $87,113 $89,727 $95,191 $110,352 $148,305 $199,309 Vacancy Loss -$4,229 -$4,356 -$4,486 -$4,760 -$5,518 -$7,415 -$9,965 Operating Income $80,347 $82,758 $85,240 $90,431 $104,835 $140,889 $189,343

    Expenses Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Cleaning & Maintenance -$2,009 -$2,069 -$2,131 -$2,261 -$2,621 -$3,522 -$4,734 Insurance -$4,634 -$4,773 -$4,916 -$5,216 -$6,046 -$8,126 -$10,920 Taxes -$8,657 -$8,917 -$9,184 -$9,744 -$11,295 -$15,180 -$20,401 Water/Sewer -$1,800 -$1,854 -$1,910 -$2,026 -$2,349 -$3,156 -$4,242 Operating Expenses -$17,100 -$17,613 -$18,141 -$19,246 -$22,311 -$29,984 -$40,297

    Income Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Net Operating Income $63,248 $65,145 $67,099 $71,186 $82,524 $110,905 $149,047 - Mortgage Payments -$33,708 -$33,708 -$33,708 -$33,708 -$33,708 -$33,708 -$0 - Improvements -$0 -$0 -$0 -$0 -$0 -$0 -$0 = Cash Flow $29,540 $31,437 $33,392 $37,478 $48,816 $77,197 $149,047 Cap Rate (Purchase Price) 10.1% 10.4% 10.7% 11.4% 13.2% 17.7% 23.8% Cap Rate (Market Value) 9.8% 9.8% 9.8% 9.8% 9.8% 9.8% 9.8% Cash on Cash Return 18.0% 19.2% 20.4% 22.9% 29.8% 47.1% 91.0% Return on Equity 16.0% 14.7% 13.7% 12.2% 10.0% 7.9% 9.8%

    Loan Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Market Value $643,750 $663,062 $682,954 $724,546 $839,948 $1,128,820 $1,517,039 - Loan Balance -$459,430 -$449,608 -$439,258 -$416,858 -$349,429 -$147,951 -$0 = Equity $184,320 $213,455 $243,696 $307,688 $490,519 $980,868 $1,517,039 Loan-to-Value Ratio 71.4% 67.8% 64.3% 57.5% 41.6% 13.1% 0.0% Potential Cash-Out Refi -$8,805 $14,536 $38,810 $90,324 $238,535 $642,222 $1,061,927

    Sale Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30 Equity $184,320 $213,455 $243,696 $307,688 $490,519 $980,868 $1,517,039 - Selling Costs -$45,062 -$46,414 -$47,807 -$50,718 -$58,796 -$79,017 -$106,193 = Proceeds After Sale $139,258 $167,040 $195,890 $256,970 $431,723 $901,851 $1,410,846 + Cumulative Cash Flow $29,540 $60,977 $94,369 $167,251 $387,986 $1,025,332 $2,166,336 - Initial Cash Invested -$163,750 -$163,750 -$163,750 -$163,750 -$163,750 -$163,750 -$163,750 = Net Profit $5,048 $64,267 $126,508 $260,471 $655,958 $1,763,432 $3,413,432 Internal Rate of Return 3.1% 19.5% 24.2% 26.6% 26.1% 24.4% 23.9% Return on Investment 3% 39% 77% 159% 401% 1,077% 2,085%

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  • Graphs 6 Family Cash Cow 146 Inslee Place Elizabeth, New Jersey 07206

    30

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    $0 2520151050

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    $1,000,000 $1,200,000

    $0 2520151050

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    Loan Balance + Equity = Market Value

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  • Rent Roll 6 Family Cash Cow 146 Inslee Place Elizabeth, New Jersey 07206

    Unit Description Square Feet Units of This Type Rent (Per Unit) Unit #1 0 1 $1,048 Per Month

    Unit #2 0 1 $1,200 Per Month

    Unit #3 0 1 $1,200 Per Month

    Unit #4 0 1 $1,200 Per Month

    Unit #5 0 1 $1,200 Per Month

    Unit #6 0 1 $1,200 Per Month

    Totals for Year 1 Total Number of Units 6 Total Area (Sum of Units) 0 Square Feet Total Rent (Sum of Units) $7,048 Per Month, $84,576 Per Year

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  • Photos 6 Family Cash Cow 146 Inslee Place Elizabeth, New Jersey 07206

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  • Photos 6 Family Cash Cow 146 Inslee Place Elizabeth, New Jersey 07206

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  • Photos 6 Family Cash Cow 146 Inslee Place Elizabeth, New Jersey 07206

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  • Photos 6 Family Cash Cow 146 Inslee Place Elizabeth, New Jersey 07206

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  • Photos 6 Family Cash Cow 146 Inslee Place Elizabeth, New Jersey 07206

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  • Photos 6 Family Cash Cow 146 Inslee Place Elizabeth, New Jersey 07206

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  • Photos 6 Family Cash Cow 146 Inslee Place Elizabeth, New Jersey 07206

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  • Photos 6 Family Cash Cow 146 Inslee Place Elizabeth, New Jersey 07206

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