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