sea-winds-investment-report by Corneau Perry

Property Report

Sea Winds 6703 Midnight Pass Rd. #205 Sarasota, FL 34242 United States Presented by:

Perry Corneau Premier Sotheby's International Realty 50 Central Suite 110 Sarasota, FL 34236 Mobile: 941.650.4626 Fax: 888.657.8061 perry.corneau@sothebysrealty.com sarasotacondospecialist.com

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Overview Sea Winds 6703 Midnight Pass Rd. #205 Sarasota, FL 34242 United States

Perry Corneau perry.corneau@sothebysrealty.com sarasotacondospecialist.com

Purchase Info Square Feet Purchase Price Initial Cash Invested Income Analysis Net Operating Income Cash Flow Financial Metrics Cap Rate (Purchase Price) Cash on Cash Return (Year 1) Internal Rate of Return (Year 10) Sale Price (Year 10)

964 $265,000 $268,227 Monthly $807 $807

Annual $9,680 $9,680

3.7% 3.6% 10.3% $572,115

This updated end unit at Sea Winds has excellent rental history and is conveniently located close to shopping, dining, and beach access. It is one of the best rental investment properties available on Siesta Key in this price range. Current owner completely updated the entire condo with granite countertops, new cabinets, quality tile throughout, fresh paint and new furniture. Easily the best in this community. Amenities include heated pool, ample parking, extra storage. This convenient location is close to beach, shopping, dining and entertainment. Income for 2013 was $20,500.

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Purchase Analysis Sea Winds 6703 Midnight Pass Rd. #205 Sarasota, FL 34242 United States

Perry Corneau perry.corneau@sothebysrealty.com sarasotacondospecialist.com

Purchase Info

Income

Purchase Price

$265,000

+ Buying Costs

$3,227

+ Initial Improvements = Initial Cash Invested Square Feet

$0 $268,227 964

Cost per Square Foot

$275

Monthly Rent per Square Foot

$1.73

Financial Metrics (Year 1) Annual Gross Rent Multiplier Operating Expense Ratio

13.2 51.6%

Cap Rate (Purchase Price)

3.7%

Cash on Cash Return

3.6%

Assumptions Appreciation Rate

8.0%

Vacancy Rate

0.0%

Income Inflation Rate

3.0%

Expense Inflation Rate

3.0%

LTV for Refinance Selling Costs

Monthly

Annual

$1,667

$20,000

($0)

$1,667

$20,000

Monthly

Annual

($125)

($1,500)

($83)

($1,000)

Taxes (10%)

($172)

($2,060)

Utilities (4%)

($60)

($720)

Association Fees (25%)

($420)

($5,040)

Operating Expenses (52%)

($860)

($10,320)

Monthly

Annual

Net Operating Income

$807

$9,680

- Year 1 Improvements

($0)

$807

$9,680

Gross Rent Vacancy Loss Operating Income Expenses (% of Income) Cleaning & Maintenance (8%)

Insurance (5%)

Net Performance

= Cash Flow

70.0% $15,900

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Buy and Hold Projection Sea Winds 6703 Midnight Pass Rd. #205 Sarasota, FL 34242 United States Income

Perry Corneau perry.corneau@sothebysrealty.com sarasotacondospecialist.com Year 1

Year 2

Year 3

Year 5

Year 10

Year 20

Year 30

$20,000

$20,600

$21,218

$22,510

$26,095

$35,070

$47,131

($0)

$20,000

$20,600

$21,218

$22,510

$26,095

$35,070

$47,131

Year 1

Year 2

Year 3

Year 5

Year 10

Year 20

Year 30

Cleaning & Maintenance

($1,500)

($1,545)

($1,591)

($1,688)

($1,957)

($2,630)

($3,535)

Insurance

($1,000)

($1,030)

($1,061)

($1,126)

($1,305)

($1,754)

($2,357)

Taxes

($2,060)

($2,122)

($2,185)

($2,319)

($2,688)

($3,612)

($4,855)

($720)

($742)

($764)

($810)

($939)

($1,263)

($1,697)

($5,040)

($5,191)

($5,347)

($5,673)

($6,576)

($8,838)

($11,877)

($10,320)

($10,630)

($10,948)

($11,615)

($13,465)

($18,096)

($24,320)

Income Analysis

Year 1

Year 2

Year 3

Year 5

Year 10

Year 20

Year 30

Net Operating Income

$9,680

$9,970

$10,270

$10,895

$12,630

$16,974

$22,812

($0)

$9,680

$9,970

$10,270

$10,895

$12,630

$16,974

$22,812

Cap Rate (Purchase Price)

3.7%

3.8%

3.9%

4.1%

4.8%

6.4%

8.6%

Cap Rate (Market Value)

3.4%

3.2%

3.1%

2.8%

2.2%

1.4%

0.9%

Cash on Cash Return

3.6%

3.7%

3.8%

4.1%

4.7%

6.3%

8.5%

Return on Equity

3.4%

3.2%

3.1%

2.8%

2.2%

1.4%

0.9%

Year 1

Year 2

Year 3

Year 5

Year 10

Year 20

Year 30

$286,200

$309,096

$333,824

$389,372

$572,115

$1,235,154

$2,666,604

($0)

= Equity

$286,200

$309,096

$333,824

$389,372

$572,115

$1,235,154

$2,666,604

Potential Cash-Out Refi

$200,340

$216,367

$233,677

$272,560

$400,481

$864,608

$1,866,623

Year 1

Year 2

Year 3

Year 5

Year 10

Year 20

Year 30

Equity

$286,200

$309,096

$333,824

$389,372

$572,115

$1,235,154

$2,666,604

- Selling Costs

($17,172)

($18,546)

($20,029)

($23,362)

($34,327)

($74,109)

($159,996)

= Proceeds After Sale

$269,028

$290,550

$313,794

$366,010

$537,788

$1,161,044

$2,506,608

$9,680

$19,650

$29,920

$51,392

$110,970

$260,105

$460,530

($268,227)

$10,481

$41,974

$75,487

$149,175

$380,532

$1,152,923

$2,698,911

3.9%

7.7%

8.9%

9.8%

10.3%

10.1%

9.9%

16%

28%

56%

142%

430%

1,006%

Gross Rent Vacancy Loss Operating Income Expenses

Utilities Association Fees Operating Expenses

- Improvements = Cash Flow

Loan Analysis Market Value - Loan Balance

Sale Analysis

+ Cumulative Cash Flow - Initial Cash Invested = Net Profit Internal Rate of Return Return on Investment

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Graphs Sea Winds 6703 Midnight Pass Rd. #205 Sarasota, FL 34242 United States

Perry Corneau perry.corneau@sothebysrealty.com sarasotacondospecialist.com

Monthly Cash Flow $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 0

15 Year

Market Value $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 0

15 Year

Internal Rate of Return (IRR) 10% 8% 6% 4% 2% 0% 0

15 Year

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Photos Sea Winds 6703 Midnight Pass Rd. #205 Sarasota, FL 34242 United States