Roncesvalles Detached 4 Unit Sample Images Only Toronto
Prime Roncesvalle - $1,000,000 Positive Monthly Cash Flow 5 Year Projected ROI - 55% 10 Year Projected ROI - 167% Fully Leased
Prepared for
Website Presentation Presented by
Bosley Real Estate Michael Wellstead
michaelw@bosleyrealestate.com
169 Danforth Ave.
Toronto, Ontario
Michael Wellstead Bosley Real Estate -
Roncesvalles Detached 4 Unit 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:
$
61,200 (16,393)
$ $ $ $ $ $
(39,099)
Cash Flow Before Taxes
$
5,708
$ 1,000,000
Total Acquisition Cost
$ 1,034,200
Mortgage (s)
$ 775,650
Down Payment / Investment
$ 258,550
32,200 2,000 -
44,807
-
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 4 258,550 3,600 287 15,300 (4,098)
5,708
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: $ 258,550 Initial Loan Balance: $ 775,650 Loan Amount Interest Rate $ 775,650 2.99% $ 2.99% $ 4.00%
Year 1
Year 3
Year 7
Debt Coverage Ratio (DCR) Loan-to-Value Ratio (LVR)
1.15 74.4%
1.22 68.4%
1.37 56.7%
Capitalization Rate Based on Cost Capitalization Rate Based on Resale Price
4.33% 4.39%
4.60% 4.48%
5.18% 4.66%
Gross Rent Multiplier
16.34
16.50
16.18
(68,833) (62,797)
(48,820) (28,678)
(36,734) 13,374
2.21% 2.21%
3.28% 3.28%
5.60% 5.60%
Internal Rate of Return - Before Taxes Internal Rate of Return - After Taxes
5.68% 5.68%
10.85% 10.85%
Modified Internal Rate of Return - Before Taxes Modified Internal Rate of Return - After Taxes
5.55% 5.55%
10.20% 10.20%
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
% of Asking 25.86% 77.57% Term 30 30 30
% of Cost 25.00% 75.00% Payment $3,258 $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.
Roncesvalles Detached 4 Unit Sample Images Only Toronto
Michael Wellstead -
Rental Activity Analysis
Year 1
Potential Rental Income
$
Less: Vacancy & Credit Losses
61,200
Year 2 $
-
Effective Gross Income
$
Less: Operating Expenses
61,200
$
Less: Annual Debt Service
44,807
$
$
5,708
62,730
$
46,173
$
7,074
$
64,298
$
47,576
$
65,906
8,476
$
$
65,906
$
49,016
9,917
67,553 (17,059)
$
(39,099) $
67,553 -
(16,890)
(39,099) $
Year 5
-
(16,722)
(39,099) $
64,298
Year 4
-
(16,557)
(39,099)
CASH FLOW Before Taxes
$
-
(16,393)
Net Operating Income (NOI)
62,730
Year 3
50,495 (39,099)
$
11,395
Property Resale Analysis Projected Sales Price Less: Selling Expenses
$ 1,020,000 $ 1,040,400 $ 1,061,208 $ 1,082,432 $ 1,104,081 (51,000) (52,020) (53,060) (54,122) (55,204) $
Adjusted Projected Sales Price Less: Mortgage(s) Balance Payoff
969,000
$
(759,379) $
SALE PROCEEDS Before Taxes
209,621
988,380
$ 1,008,148
(742,618) $
245,762
$ 1,028,311
(725,352) $
282,796
$ 1,048,877
(707,566) $
320,745
(689,244) $
359,633
Cash Position Cash Generated in Current Year Cash Generated in Previous Years Cash Generated from Property Sale Original Initial Investment Total Potential CASH Generated
$
5,708 $ n/a 209,621 (258,550)
$
(43,221)
$
7,074 $ 5,708 245,762 (258,550) (6)
$
8,476 $ 12,781 282,796 (258,550) 45,504
$
9,917 $ 21,258 320,745 (258,550) 93,369
$
11,395 31,174 359,633 (258,550) 143,653
Financial Measurements 1.15
1.18
1.22
1.25
1.29
Loan-to-Value Ratio (LVR)
Debt Coverage Ratio (DCR)
74.4%
71.4%
68.4%
65.4%
62.4%
Capitalization Rate Based on Cost
4.33%
4.46%
4.60%
4.74%
4.88%
Capitalization Rate Based on Resale Price
4.39%
4.44%
4.48%
4.53%
4.57%
Gross Rent Monthly Multiplier (GRM) Gross Rent Yearly Multiplier (GRM) Value of Property Using this GRM
12.00
Break-Even Ratio Operating Expense Ratio
196.08
199.02
198.05
197.09
196.13
16.34 734,400
16.59 752,760
16.50 771,579
16.42 790,868
16.34 810,640
90.67% 26.79%
88.72% 26.39%
86.82% 26.01%
84.95% 25.63%
83.13% 25.25%
(68,833)
(57,254)
(48,820)
(42,982)
(39,275)
Cash-on-Cash Return with Equity Cash-on-Cash Return - Before Taxes
-16.72% 2.21%
20.62% 2.74%
18.52% 3.28%
16.93% 3.84%
15.68% 4.41%
Internal Rate-of-Return (IRR) - Before Taxes
-16.72%
0.00%
5.68%
8.28%
9.64%
Modified Internal Rate-of-Return (MIRR) - Before Taxes
-16.72%
0.00%
5.55%
8.01%
9.24%
Net Present Value (NPV) - Before Taxes
29/01/2013 6:24 PM
13.50%
© 1993 - 2012 Cash Flow Analyzer®
http://RentalSoftware.com
Roncesvalles Detached 4 Unit Sample Images Only Toronto
Michael Wellstead -
Rental Activity Analysis
Year 6
Potential Rental Income
$
Less: Vacancy & Credit Losses
69,242
Year 7 $
-
Effective Gross Income
$
Less: Operating Expenses
69,242
$
Less: Annual Debt Service
52,013
$
$
12,914
70,973
$
53,572
$
14,472
$
72,748
$
55,172
$
74,566
16,073
$
$
74,566
$
56,815
17,716
76,430 (17,929)
$
(39,099) $
76,430 -
(17,751)
(39,099) $
Year 10
-
(17,575)
(39,099) $
72,748
Year 9
-
(17,401)
(39,099)
CASH FLOW Before Taxes
$
-
(17,229)
Net Operating Income (NOI)
70,973
Year 8
58,502 (39,099)
$
19,402
Property Resale Analysis Projected Sales Price Less: Selling Expenses
$ 1,126,162 $ 1,148,686 $ 1,171,659 $ 1,195,093 $ 1,218,994 (56,308) (57,434) (58,583) (59,755) (60,950) $ 1,069,854
Adjusted Projected Sales Price Less: Mortgage(s) Balance Payoff
$ 1,091,251
(670,370) $
SALE PROCEEDS Before Taxes
399,484
$ 1,113,076
(650,928) $
440,324
$ 1,135,338
(630,899) $
482,177
$ 1,158,045
(610,268) $
525,070
(589,015) $
569,030
Cash Position Cash Generated in Current Year Cash Generated in Previous Years Cash Generated from Property Sale Original Initial Investment
$
Total Potential CASH Generated
$
12,914 $ 42,570 399,484 (258,550) 196,418
$
14,472 $ 55,484 440,324 (258,550) 251,730
$
16,073 $ 69,956 482,177 (258,550) 309,656
$
17,716 $ 86,029 525,070 (258,550) 370,264
$
19,402 103,744 569,030 (258,550) 433,626
Financial Measurements Debt Coverage Ratio (DCR)
1.33
1.37
1.41
1.45
1.50
Loan-to-Value Ratio (LVR)
59.5%
56.7%
53.8%
51.1%
48.3%
Capitalization Rate Based on Cost
5.03%
5.18%
5.33%
5.49%
5.66%
Capitalization Rate Based on Resale Price
4.62%
4.66%
4.71%
4.75%
4.80%
Gross Rent Monthly Multiplier (GRM) Gross Rent Yearly Multiplier (GRM) Value of Property Using this GRM
12.00
Break-Even Ratio Operating Expense Ratio
195.17
194.22
193.27
192.33
191.39
16.26 830,906
16.18 851,679
16.11 872,971
16.03 894,795
15.95 917,165
81.35% 24.88%
79.61% 24.52%
77.91% 24.16%
76.24% 23.81%
74.61% 23.46%
(37,303)
(36,734)
(37,285)
(38,720)
(40,840)
Cash-on-Cash Return with Equity Cash-on-Cash Return - Before Taxes
14.67% 4.99%
13.85% 5.60%
13.16% 6.22%
12.57% 6.85%
12.07% 7.50%
Internal Rate-of-Return (IRR) - Before Taxes
10.41%
10.85%
11.11%
11.25%
11.32%
9.88%
10.20%
10.34%
10.38%
10.35%
Net Present Value (NPV) - Before Taxes
13.50%
Modified Internal Rate-of-Return (MIRR) - Before Taxes
29/01/2013 6:24 PM
© 1993 - 2012 Cash Flow Analyzer®
http://RentalSoftware.com