Post on 08-Aug-2020
800 6th Ave, Howard Lake, MnOne 12 Unit Building
$428,000
Cost Per Unit : $35,667
Cap Rate : 9.1% Cash-on-Cash : 14.3%
Terms: Cash / New Financing
Net Operating Income : $38,886
InsideTrackRealty.com : 612-225-9445
Inside Track Realty
InsideTrackRealty.com : 612-225-9445
Inside Track Realty
Summary :This twelve unit building was built in 1984 with large apartments, nice common areas and plenty ofparking. It’s in a great small town neighborhood with nicely landscaped grounds including lots ofgrass and mature trees.
It is made up of one bedroom units and has an upper floor party-room & hallway bathroom whichcould be combined to create an additional studio apartment.
Also included is the adjacent lot, with a storage garage, offering great green space for tenants aswell as future building potential.
The owner has asked that both the confidentiality of this offering and the privacy of the tenants berespected. Please do not disturb tenants or enter grounds with out appointment. The financial in-formation and condition information to be verified by buyer. Information sources include : Own-er, County Tax Records, City Utilities and Listing Agent estimates.
Year Built 1984
Sq Footage 10,790 Sq Ft
Units 12 One Beds
Roof Age ½ facing alley is new in 2011, other half original
Windows Original - two picture windows are newer
Heating Type Boilers - Two
Heating Paid By Owner
Air Conditioning Tenants paid - window units
Laundry Coin Operated, Owned
Construction Exterior: Stucco
Parking / Garages Two Lots with plenty of parking
Lot Size 26,641 Sq Ft, the additional lot is 26,941 Sq Ft.
Grounds Nicely Landscaped / Mature Trees & Grass
Notable UpdatesCondition Very GoodOther Comes with 2nd Parcel - Next door lot
Rents Monthly AnnualOne Bed One Bath * 10 OF $520 $6,240One Bed One Bath * 1 OF $500 $6,000One / One Bath * 1 OF $430 $5,160
InsideTrackRealty.com : 612-225-9445
Purchase Analysis
Inside Track Realty
Purchase InfoPurchase Price $428,000
- First Mortgage ($321,000)
- Second Mortgage ($0)
= Downpayment $107,000+ Buying Costs $8,560
+ Initial Improvements $0
= Initial Cash Invested $115,560Square Feet (12 Units) 10,790
Cost per Square Foot $40
Monthly Rent per Square Foot $0.57
Cost per Unit $35,667
Average Monthly Rent per Unit $511
Mortgages First SecondLoan-To-Cost Ratio 75% 0%
Loan-To-Value Ratio 75% 0%
Loan Amount $321,000 $0
Loan Type Amortizing
Term 25 Years
Interest Rate 5%
Payment $1,866.95 $0.00
Financial Metrics (Year 1)Annual Gross Rent Multiplier 5.8
Operating Expense Ratio 47.1%
Debt Coverage Ratio 1.74
Cap Rate (Purchase Price) 9.1%
Cash on Cash Return 14.3%
AssumptionsAppreciation Rate 1.0%
Vacancy Rate 5.0%
Income Inflation Rate 3.0%
Expense Inflation Rate 3.0%
LTV for Refinance 75.0%
Income Monthly AnnualGross Rent $6,130 $73,560
Vacancy Loss ($306) ($3,678)
Laundry $300 $3,600
Operating Income $6,124 $73,482
Expenses (% of Income) Monthly AnnualMaint / Repair (1%) ($50) ($600)
Insurance (4%) ($271) ($3,250)
Taxes (11%) ($646) ($7,754)
Utilities - Heat (4%) ($220) ($2,640)
Grounds / Snow / Lawn (4%) ($215) ($2,580)
Utilities - Electric (1%) ($61) ($732)
Utilities - Water/Sewer (20%) ($1,200) ($14,400)
Trash (4%) ($220) ($2,640)
Operating Expenses (47%) ($2,883) ($34,596)
Net Performance Monthly AnnualNet Operating Income $3,240 $38,886- Mortgage Payments ($1,867) ($22,403)
- Year 1 Improvements ($0) ($0)
= Cash Flow $1,374 $16,483
InsideTrackRealty.com : 612-225-9445
Inside Track Realty
InsideTrackRealty.com : 612-225-9445
Inside Track Realty
Front View Back View
Side View Front Entry Inside
Lower Hallway Entry
InsideTrackRealty.com : 612-225-9445
Inside Track Realty
Lower Unit Kitchen Lower Unit Living Room
Lower Unit Bedroom Lower Unit Bath
Laundry Mechs - Elec Panel