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Oriole Parkway - Detached 5 Units Sample Images Only Toronto

Purchase Price $1,916,000 Prestigious Chaplin Estates - 5 Units (1-3 Bedrooms) Detached 22% Year Over Year Property Appreciation 2000 - 2012 Positive Monthly Cashflow 57% ROI (5 Years) - 169% ROI (10 Years)

Prepared for

Website Presentation Presented by

Bosley Real Estate Michael Wellstead

michaelw@bosleyrealestate.com

169 Danforth Ave.

Toronto, Ontario


Michael Wellstead Bosley Real Estate -

Oriole Parkway - Detached 5 Units Sample Images Only Toronto

Income, Expenses & Cash Flow

Property Overview

Potential Rental Income Other Income Total Vacancy and Credits Operating Expenses Annual Reserves: Net Operating Income (NOI) MIP Payments Annual Reserves: Debt Service:

$

112,440 (15,654)

$ $ $ $ $ $

(72,529)

Cash Flow Before Taxes

$

24,257

$ 1,916,000

Total Acquisition Cost

$ 1,986,840

Mortgage (s)

$ 1,437,000

Down Payment / Investment

$ 549,840

68,840 2,000 -

96,786

-

Income Taxes: Benefit (Expense) @ 0%

Cash Flow After Taxes

Purchase/Asking Price Improvements Other Closing Costs Finance Points

$

Property Type No. of Units Price Per Unit Total Sq Ft Price Per Sq Ft Income per Unit Expenses per Unit

$ $ $ $

Multi-Family 5 397,368 4,700 423 22,488 (3,131)

24,257

Assumptions

Loan Information

Rental Growth Rate: Expense Growth Rate: Appreciation Rate Marginal Tax Rate: Capital Gain Tax Rate:

2.50% 1.00% 2.00% 0.00% 0.00%

Financial Measurements

Down Payment: $ 549,840 Initial Loan Balance: $ 1,437,000 Loan Amount Interest Rate $ 1,437,000 3.00% $ 5.00% $ 4.00%

Year 1

Year 5

Year 10

Debt Coverage Ratio (DCR) Loan-to-Value Ratio (LVR)

1.33 72.0%

1.49 60.4%

1.70 46.7%

Capitalization Rate Based on Cost Capitalization Rate Based on Resale Price

4.87% 4.95%

5.43% 5.10%

6.21% 5.28%

Gross Rent Multiplier

17.04

Net Present Value (NPV) - B/ Taxes

13.50%

Net Present Value (NPV) - A/Taxes

10.00%

Cash on Cash Return - Before Taxes Cash on Cash Return - After Taxes Internal Rate of Return - Before Taxes Internal Rate of Return - After Taxes Modified Internal Rate of Return - Before Taxes Modified Internal Rate of Return - After Taxes

17.04

16.63

(149,476) (136,737)

(71,371) 2,470

(57,403) 89,516

4.41% 4.41%

6.42% 6.42%

9.23% 9.23%

10.11% 10.11%

12.00% 12.00%

9.36% 9.36%

10.37% 10.37%

% of Asking 28.70% 75.00% Term 30 30 30

% of Cost 27.67% 72.33% Payment $6,044 $0 $0

Notes / Discussion

Disclaimer: All information presented is believed to be accurate. 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.


Oriole Parkway - Detached 5 Units Sample Images Only Toronto

Michael Wellstead -

Rental Activity Analysis

Year 1

Potential Rental Income

$

Less: Vacancy & Credit Losses

112,440

Year 2 $

-

Effective Gross Income

$

Less: Operating Expenses

112,440

$

Less: Annual Debt Service

96,786

$

$

24,257

115,251

$

99,440

$

26,912

$

118,132

$

102,164

$

121,086

29,635

$

$

121,086

$

104,957

32,429

124,113 (16,290)

$

(72,529) $

124,113 -

(16,128)

(72,529) $

Year 5

-

(15,969)

(72,529) $

118,132

Year 4

-

(15,811)

(72,529)

CASH FLOW Before Taxes

$

-

(15,654)

Net Operating Income (NOI)

115,251

Year 3

107,823 (72,529)

$

35,294

Property Resale Analysis Projected Sales Price Less: Selling Expenses

$ 1,954,320 $ 1,993,406 $ 2,033,275 $ 2,073,940 $ 2,115,419 (117,259) (119,604) (121,996) (124,436) (126,925) $ 1,837,061

Adjusted Projected Sales Price Less: Mortgage(s) Balance Payoff

$ 1,873,802

(1,406,905) $

SALE PROCEEDS Before Taxes

430,156

$ 1,911,278

(1,375,901) $

497,901

$ 1,949,504

(1,343,959) $

567,319

$ 1,988,494

(1,311,053) $

638,451

(1,277,151) $

711,343

Cash Position Cash Generated in Current Year Cash Generated in Previous Years Cash Generated from Property Sale Original Initial Investment Total Potential CASH Generated

$

24,257 $ n/a 430,156 (549,840)

$

(95,427)

$

26,912 $ 24,257 497,901 (549,840) (770)

$

29,635 $ 51,169 567,319 (549,840) 98,283

$

32,429 $ 80,804 638,451 (549,840) 201,844

$

35,294 113,232 711,343 (549,840) 310,029

Financial Measurements 1.33

1.37

1.41

1.45

1.49

Loan-to-Value Ratio (LVR)

Debt Coverage Ratio (DCR)

72.0%

69.0%

66.1%

63.2%

60.4%

Capitalization Rate Based on Cost

4.87%

5.00%

5.14%

5.28%

5.43%

Capitalization Rate Based on Resale Price

4.95%

4.99%

5.02%

5.06%

5.10%

Gross Rent Monthly Multiplier (GRM) Gross Rent Yearly Multiplier (GRM) Value of Property Using this GRM

12.00

Break-Even Ratio Operating Expense Ratio

204.48

207.55

206.54

205.53

204.53

17.04 1,349,280

17.30 1,383,012

17.21 1,417,587

17.13 1,453,027

17.04 1,489,353

78.43% 13.92%

76.65% 13.72%

74.91% 13.52%

73.22% 13.32%

71.56% 13.12%

(149,476)

(121,076)

(99,302)

(83,049)

(71,371)

Cash-on-Cash Return with Equity Cash-on-Cash Return - Before Taxes

-17.36% 4.41%

22.01% 4.89%

19.89% 5.39%

18.25% 5.90%

16.95% 6.42%

Internal Rate-of-Return (IRR) - Before Taxes

-17.36%

-0.07%

5.88%

8.64%

10.11%

Modified Internal Rate-of-Return (MIRR) - Before Taxes

-17.36%

-0.07%

5.63%

8.13%

9.36%

Net Present Value (NPV) - Before Taxes

29/01/2013 6:32 PM

13.50%

© 1993 - 2012 Cash Flow Analyzer®

http://RentalSoftware.com


Oriole Parkway - Detached 5 Units Sample Images Only Toronto

Michael Wellstead -

Rental Activity Analysis

Year 6

Potential Rental Income

$

Less: Vacancy & Credit Losses

127,216

Year 7 $

-

Effective Gross Income

$

Less: Operating Expenses

127,216

$

Less: Annual Debt Service

110,763

$

$

38,234

130,396

$

113,779

$

41,250

$

133,656

$

116,873

$

136,997

44,344

$

$

136,997

$

120,046

47,517

140,422 (17,121)

$

(72,529) $

140,422 -

(16,951)

(72,529) $

Year 10

-

(16,783)

(72,529) $

133,656

Year 9

-

(16,617)

(72,529)

CASH FLOW Before Taxes

$

-

(16,453)

Net Operating Income (NOI)

130,396

Year 8

123,302 (72,529)

$

50,773

Property Resale Analysis Projected Sales Price Less: Selling Expenses

$ 2,157,727 $ 2,200,882 $ 2,244,899 $ 2,289,797 $ 2,335,593 (129,464) (132,053) (134,694) (137,388) (140,136) $ 2,028,264

Adjusted Projected Sales Price Less: Mortgage(s) Balance Payoff

$ 2,068,829

(1,242,225) $

SALE PROCEEDS Before Taxes

786,039

$ 2,110,205

(1,206,243) $

862,586

$ 2,152,410

(1,169,174) $

941,032

$ 2,195,458

(1,130,984) $ 1,021,426

(1,091,640) $ 1,103,818

Cash Position Cash Generated in Current Year Cash Generated in Previous Years Cash Generated from Property Sale Original Initial Investment

$

Total Potential CASH Generated

$

38,234 $ 148,527 786,039 (549,840) 422,960

$

41,250 $ 186,761 862,586 (549,840) 540,757

$

44,344 $ 47,517 $ 50,773 228,011 272,355 319,873 941,032 1,021,426 1,103,818 (549,840) (549,840) (549,840) 663,547

$

791,458

$

924,623

Financial Measurements Debt Coverage Ratio (DCR)

1.53

1.57

1.61

1.66

1.70

Loan-to-Value Ratio (LVR)

57.6%

54.8%

52.1%

49.4%

46.7%

Capitalization Rate Based on Cost

5.57%

5.73%

5.88%

6.04%

6.21%

Capitalization Rate Based on Resale Price

5.13%

5.17%

5.21%

5.24%

5.28%

Gross Rent Monthly Multiplier (GRM) Gross Rent Yearly Multiplier (GRM) Value of Property Using this GRM

12.00

Break-Even Ratio Operating Expense Ratio

203.53

202.54

201.55

200.57

199.59

16.96 1,526,586

16.88 1,564,751

16.80 1,603,870

16.71 1,643,967

16.63 1,685,066

69.95% 12.93%

68.37% 12.74%

66.82% 12.56%

65.32% 12.37%

63.84% 12.19%

(63,467)

(58,652)

(56,350)

(56,071)

(57,403)

Cash-on-Cash Return with Equity Cash-on-Cash Return - Before Taxes

15.88% 6.95%

14.99% 7.50%

14.24% 8.06%

13.59% 8.64%

13.04% 9.23%

Internal Rate-of-Return (IRR) - Before Taxes

10.94%

11.44%

11.73%

11.90%

12.00%

9.98%

10.28%

10.40%

10.42%

10.37%

Net Present Value (NPV) - Before Taxes

13.50%

Modified Internal Rate-of-Return (MIRR) - Before Taxes

29/01/2013 6:32 PM

© 1993 - 2012 Cash Flow Analyzer®

http://RentalSoftware.com


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