72-sp Sun Terrace MHP For Sale -...
Transcript of 72-sp Sun Terrace MHP For Sale -...
Benny Spensieri
813-391-1545
Clearwater, FL 33760
Gross Revenue = 508K NOI = $305K 10% Cap Rate
Presented by
CRES Corp International, LLC1228 E 7th Ave
Minutes from Down Town, Clearwater Beach and International Airport
City Water & Sewer
Tampa, Fl 33605
70-sp MHP plus 2 Apartments
72-sp Sun Terrace MHP For Sale
5860 150th Ave N
Potential Rental Income 517,000$ Purchase/Asking Price 3,200,000$ Property Type Mobile Home Parks
Other Income - Improvements - No. of Units 71
Total Vacancy and Credits (25,850) Other - Price Per Unit 45,070$
Operating Expenses (186,148)$ Closing Costs - Total Sq Ft 1,000
Annual Reserves: $ Finance Points - Price Per Sq Ft 3,200$
Net Operating Income (NOI) 305,002$ Income per Unit 7,282$
MIP Payments $ Total Acquisition Cost 3,200,000$ Expenses per Unit (2,622)$
Annual Reserves: $ Debt Service: (157,138)$
Mortgage (s) 2,240,000$
Cash Flow Before Taxes 147,864$
- Down Payment / Investment 960,000$
Cash Flow After Taxes 147,864$
% of Asking % of Cost
Rental Growth Rate: 3.00% Down Payment: 960,000$ 30.00% 30.00%
Expense Growth Rate: 3.00% Initial Loan Balance: 2,240,000$ 70.00% 70.00%
Capitalization Rate (Resale): 10.00%
Marginal Tax Rate: 0.00% Loan Amount Interest Rate Term Payment
Capital Gain Tax Rate: 0.00% 2,240,000$ 5.00% 25 $13,095
$ 8.00% 30 $0
$ 8.00% 30 $0
Year 1 Year 3 Year 7
Debt Coverage Ratio (DCR) 1.94 2.06 2.32
Loan-to-Value Ratio (LVR) 71.9% 64.7% 51.1%
Capitalization Rate Based on Cost 9.53% 10.11% 11.38%
Capitalization Rate Based on Resale Price 10.00% 10.00% 10.00%
Gross Rent Multiplier 6.19 5.90 5.90
13.50% (75,356) 186,726 521,463
10.00% (47,208) 286,887 795,308
Cash on Cash Return - Before Taxes 15.40% 17.34% 21.57%
Cash on Cash Return - After Taxes 15.40% 17.34% 21.57%
Internal Rate of Return - Before Taxes 21.37% 23.51%
Internal Rate of Return - After Taxes 21.37% 23.51%
18.88% 17.77%
18.88% 17.77%
Disclaimer: All information presented is believed to be accurate.
Benny Spensieri
CRES Corp International, LLC
813-391-1545
Property Overview
72-sp Sun Terrace MHP For Sale
5860 150th Ave N
Clearwater, FL 33760
Income, Expenses & Cash Flow
Income Taxes: Benefit (Expense) @ 0%
Financial Measurements Notes / Discussion
Loan InformationAssumptions
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.
Modified Internal Rate of Return - Before Taxes
Modified Internal Rate of Return - After Taxes
Net Present Value (NPV) - B/ Taxes
Net Present Value (NPV) - A/Taxes
Benny Spensieri
813-391-1545
Property Description
City Water & Sewer
Close to Beach & Down Town Area
70-spaces + 2 Apartments
63 Park Owned Homes
$305K NOI
94% Occupied
72-sp Sun Terrace MHP For Sale
5860 150th Ave N
Clearwater, FL 33760
HIGHLIGHTS
0
1228 E 7th Ave
CRES Corp International, LLC
Tampa, Fl 33605
The Sun Terrace MHP is located just minutes from Clearwater
Beach and the Down Town area. This park consists of:
-70-space
-63 Park Owned Homes
-1- 2-unit Apartment
-Family Park
-City Water & Sewer (Submetered)
-94% Occupied
-GR = $508K
-NOI = $305K
Property also includes a Laundry Building (not currently used),
Office, Recreation Building (not currently being used) and a
maintenance building.
Rents collected average $602 (Apartments), $253 (Lot Rent),
$463 (Single Wide Units), $835 (Double-wide Units).
Current rents are well below market. The owner has incorporated
a 7% increase in rents for new tenants but has not increased the
rents for the long tern tenants.
Asking Price: $3,200,000
Feel free to contact me for further information.
72-sp Sun Terrace MHP For Sale
5860 150th Ave N
Clearwater, FL 33760
Potential Rental Income 517,000$ 532,510$ 548,485$ 564,940$ 581,888$
Less: Vacancy & Credit Losses (25,850) (26,626) (27,424) (28,247) (29,094)
Effective Gross Income 491,150$ 505,885$ 521,061$ 536,693$ 552,794$
Less: Operating Expenses (186,148) (191,732) (197,484) (203,409) (209,511)
Net Operating Income (NOI) 305,002$ 314,152$ 323,577$ 333,284$ 343,282$
Less: Annual Debt Service (157,138) (157,138) (157,138) (157,138) (157,138)
CASH FLOW Before Taxes 147,864$ 157,014$ 166,439$ 176,146$ 186,145$
Projected Sales Price 3,050,020$ 3,141,521$ 3,235,766$ 3,332,839$ 3,432,824$
Less: Selling Expenses - - - - -
Adjusted Projected Sales Price 3,050,020$ 3,141,521$ 3,235,766$ 3,332,839$ 3,432,824$
Less: Mortgage(s) Balance Payoff (2,193,813) (2,145,263) (2,094,230) (2,040,585) (1,984,196)
SALE PROCEEDS Before Taxes 856,207$ 996,257$ 1,141,536$ 1,292,254$ 1,448,628$
Cash Generated in Current Year 147,864$ 157,014$ 166,439$ 176,146$ 186,145$
Cash Generated in Previous Years n/a 147,864 304,878 471,317 647,463
Cash Generated from Property Sale 856,207 996,257 1,141,536 1,292,254 1,448,628
Original Initial Investment (960,000) (960,000) (960,000) (960,000) (960,000)
44,071$ 341,136$ 652,854$ 979,717$ 1,322,236$
Debt Coverage Ratio (DCR) 1.94 2.00 2.06 2.12 2.18
Loan-to-Value Ratio (LVR) 71.9% 68.3% 64.7% 61.2% 57.8%
Capitalization Rate Based on Cost 9.53% 9.82% 10.11% 10.42% 10.73%
Capitalization Rate Based on Resale Price 10.00% 10.00% 10.00% 10.00% 10.00%
Gross Rent Monthly Multiplier (GRM) 74.27 70.79 70.79 70.79 70.79
Gross Rent Yearly Multiplier (GRM) 6.19 5.90 5.90 5.90 5.90
Value of Property Using this GRM 6.00 3,102,000 3,195,060 3,290,912 3,389,639 3,491,328
Break-Even Ratio 66.40% 65.51% 64.65% 63.82% 63.01%
Operating Expense Ratio 37.90% 37.90% 37.90% 37.90% 37.90%
Cash-on-Cash Return with Equity 4.59% 34.70% 31.29% 28.63% 26.51%
Cash-on-Cash Return - Before Taxes 15.40% 16.36% 17.34% 18.35% 19.39%
Year 2 Year 3
Financial Measurements
Year 4 Year 5
Cash Position
Rental Activity Analysis
Total Potential CASH Generated
Property Resale Analysis
Year 1
Benny Spensieri
813-391-1545
2/20/2018 1:29 PM © 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com
72-sp Sun Terrace MHP For Sale
5860 150th Ave N
Clearwater, FL 33760
Potential Rental Income
Less: Vacancy & Credit Losses
Effective Gross Income
Less: Operating Expenses
Net Operating Income (NOI)
Less: Annual Debt Service
CASH FLOW Before Taxes
Projected Sales Price
Less: Selling Expenses
Adjusted Projected Sales Price
Less: Mortgage(s) Balance Payoff
SALE PROCEEDS Before Taxes
Cash Generated in Current Year
Cash Generated in Previous Years
Cash Generated from Property Sale
Original Initial Investment
Debt Coverage Ratio (DCR)
Loan-to-Value Ratio (LVR)
Capitalization Rate Based on Cost
Capitalization Rate Based on Resale Price
Gross Rent Monthly Multiplier (GRM)
Gross Rent Yearly Multiplier (GRM)
Value of Property Using this GRM 6.00
Break-Even Ratio
Operating Expense Ratio
Cash-on-Cash Return with Equity
Cash-on-Cash Return - Before Taxes
Financial Measurements
Cash Position
Rental Activity Analysis
Total Potential CASH Generated
Property Resale Analysis
599,345$ 617,325$ 635,845$ 654,920$ 674,568$
(29,967) (30,866) (31,792) (32,746) (33,728)
569,377$ 586,459$ 604,053$ 622,174$ 640,839$
(215,797) (222,270) (228,939) (235,807) (242,881)
353,581$ 364,188$ 375,114$ 386,367$ 397,958$
(157,138) (157,138) (157,138) (157,138) (157,138)
196,443$ 207,051$ 217,976$ 229,230$ 240,821$
3,535,809$ 3,641,883$ 3,751,140$ 3,863,674$ 3,979,584$
- - - - -
3,535,809$ 3,641,883$ 3,751,140$ 3,863,674$ 3,979,584$
(1,924,922) (1,862,615) (1,797,121) (1,728,275) (1,655,908)
1,610,887$ 1,779,268$ 1,954,019$ 2,135,399$ 2,323,677$
196,443$ 207,051$ 217,976$ 229,230$ 240,821$
833,608 1,030,051 1,237,102 1,455,078 1,684,307
1,610,887 1,779,268 1,954,019 2,135,399 2,323,677
(960,000) (960,000) (960,000) (960,000) (960,000)
1,680,938$ 2,056,370$ 2,449,097$ 2,859,706$ 3,288,805$
2.25 2.32 2.39 2.46 2.53
54.4% 51.1% 47.9% 44.7% 41.6%
11.05% 11.38% 11.72% 12.07% 12.44%
10.00% 10.00% 10.00% 10.00% 10.00%
70.79 70.79 70.79 70.79 70.79
5.90 5.90 5.90 5.90 5.90
3,596,068 3,703,950 3,815,069 3,929,521 4,047,406
62.22% 61.46% 60.72% 60.00% 59.30%
37.90% 37.90% 37.90% 37.90% 37.90%
24.76% 23.31% 22.07% 21.01% 20.09%
20.46% 21.57% 22.71% 23.88% 25.09%
Year 9
Benny Spensieri
813-391-1545
Year 6 Year 7 Year 10Year 8
2/20/2018 1:29 PM © 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com
72-sp Sun Terrace MHP For Sale
5860 150th Ave N
Clearwater, FL 33760
% of % of
Expenses Revenue
2,575 3.0% 36.27 2.58 1.4% 0.5%
3,850 3.0% 54.23 3.85 2.1% 0.8%
6,050 3.0% 85.21 6.05 3.3% 1.2%
28,070 3.0% 395.35 28.07 15.1% 5.7%
2,559 3.0% 36.04 2.56 1.4% 0.5%
31,139 3.0% 438.58 31.14 16.7% 6.3%
26,226 3.0% 369.38 26.23 14.1% 5.3%
7,560 3.0% 106.48 7.56 4.1% 1.5%
36,759 3.0% 517.73 36.76 19.7% 7.5%
31,360 3.0% 441.69 31.36 16.8% 6.4%
10,000 3.0% 140.85 10.00 5.4% 2.0%
186,148$ 2,622$ 1,000 100.0% 37.9%
Benny Spensieri
813-391-1545
Per Sq Ft
Cleaning
Annual
Amount
Annual
Increase
Insurance
Landscaping
Property Taxes
Payroll
Total Annual Operating Expenses
Trash Removal
Miscellaneous
Electricity
Per Unit
Supplies
Water/Sewer
Expense Description
Professional Fees
Annual Property Operating Data72-sp Sun Terrace MHP For Sale
5860 150th Ave N
Clearwater, FL 33760 Benny Spensieri
Column 1 813-391-1545
Column 2
Year 1 Sq Ft Per Unit Year 2 Sq Ft Per Unit Year 3 Sq Ft Per Unit Year 4 Sq Ft Per Unit Year 5 Sq Ft Per Unit
Potential Rental Income 517,000$ 43.08 606.81 532,510$ 44.38 625.01 548,485$ 45.71 643.76 564,940$ 47.08 663.07 581,888$ 48.49 682.97
Less: Vacancy & Credit Losses (25,850) -2.15 -30.34 (26,626) -2.22 -31.25 (27,424) -2.29 -32.19 (28,247) -2.35 -33.15 (29,094) -2.42 -34.15
491,150$ 40.93 576.47 505,885$ 42.16 593.76 521,061$ 43.42 611.57 536,693$ 44.72 629.92 552,794$ 46.07 648.82
Cleaning 2,575 0.21 3.02 2,652 0.22 3.11 2,732 0.23 3.21 2,814 0.23 3.30 2,898 0.24 3.40
Insurance 3,850 0.32 4.52 3,966 0.33 4.65 4,084 0.34 4.79 4,207 0.35 4.94 4,333 0.36 5.09
Landscaping 6,050 0.50 7.10 6,232 0.52 7.31 6,418 0.53 7.53 6,611 0.55 7.76 6,809 0.57 7.99
Payroll 28,070 2.34 32.95 28,912 2.41 33.93 29,779 2.48 34.95 30,673 2.56 36.00 31,593 2.63 37.08
Professional Fees 2,559 0.21 3.00 2,636 0.22 3.09 2,715 0.23 3.19 2,796 0.23 3.28 2,880 0.24 3.38
Supplies 31,139 2.59 36.55 32,073 2.67 37.64 33,035 2.75 38.77 34,026 2.84 39.94 35,047 2.92 41.14
Property Taxes 26,226 2.19 30.78 27,013 2.25 31.71 27,823 2.32 32.66 28,658 2.39 33.64 29,518 2.46 34.65
Trash Removal 7,560 0.63 8.87 7,787 0.65 9.14 8,020 0.67 9.41 8,261 0.69 9.70 8,509 0.71 9.99
Electricity 36,759 3.06 43.14 37,862 3.16 44.44 38,998 3.25 45.77 40,168 3.35 47.15 41,373 3.45 48.56
Water/Sewer 31,360 2.61 36.81 32,301 2.69 37.91 33,270 2.77 39.05 34,268 2.86 40.22 35,296 2.94 41.43
Miscellaneous 10,000 0.83 11.74 10,300 0.86 12.09 10,609 0.88 12.45 10,927 0.91 12.83 11,255 0.94 13.21
186,148$ 15.51 218.48 191,732$ 15.98 225.04 197,484$ 16.46 231.79 203,409$ 16.95 238.74 209,511$ 17.46 245.91
305,002$ 25.42 357.98 314,152$ 26.18 368.72 323,577$ 26.96 379.78 333,284$ 27.77 391.18 343,282$ 28.61 402.91
Less: Annual Debt Service (157,138) -13.09 -184.43 (157,138) -13.09 -184.43 (157,138) -13.09 -184.43 (157,138) -13.09 -184.43 (157,138) -13.09 -184.43
Cash Flow Before Taxes 147,864$ 12.32 173.55 157,014$ 13.08 184.29 166,439$ 13.87 195.35 176,146$ 14.68 206.74 186,145$ 15.51 218.48
Net Operating Income (NOI)
Total Operating Expenses
Operating Expenses
Effective Gross Income
© 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com
Annual Property Operating Data72-sp Sun Terrace MHP For Sale
5860 150th Ave N
Clearwater, FL 33760
Column 1
Column 2
Potential Rental Income
Less: Vacancy & Credit Losses
Cleaning
Insurance
Landscaping
Payroll
Professional Fees
Supplies
Property Taxes
Trash Removal
Electricity
Water/Sewer
Miscellaneous
Less: Annual Debt Service
Cash Flow Before Taxes
Net Operating Income (NOI)
Total Operating Expenses
Operating Expenses
Effective Gross Income
Benny Spensieri
813-391-1545
Year 6 Sq Ft Per Unit Year 7 Sq Ft Per Unit Year 8 Sq Ft Per Unit Year 9 Sq Ft Per Unit Year 10 Sq Ft Per Unit
599,345$ 49.95 703.46 617,325$ 51.44 724.56 635,845$ 52.99 746.30 654,920$ 54.58 768.69 674,568$ 56.21 791.75
(29,967) -2.50 -35.17 (30,866) -2.57 -36.23 (31,792) -2.65 -37.31 (32,746) -2.73 -38.43 (33,728) -2.81 -39.59
569,377$ 47.45 668.28 586,459$ 48.87 688.33 604,053$ 50.34 708.98 622,174$ 51.85 730.25 640,839$ 53.40 752.16
2,985 0.25 3.50 3,075 0.26 3.61 3,167 0.26 3.72 3,262 0.27 3.83 3,360 0.28 3.94
4,463 0.37 5.24 4,597 0.38 5.40 4,735 0.39 5.56 4,877 0.41 5.72 5,023 0.42 5.90
7,014 0.58 8.23 7,224 0.60 8.48 7,441 0.62 8.73 7,664 0.64 9.00 7,894 0.66 9.27
32,541 2.71 38.19 33,517 2.79 39.34 34,523 2.88 40.52 35,558 2.96 41.74 36,625 3.05 42.99
2,967 0.25 3.48 3,056 0.25 3.59 3,147 0.26 3.69 3,242 0.27 3.80 3,339 0.28 3.92
36,099 3.01 42.37 37,182 3.10 43.64 38,297 3.19 44.95 39,446 3.29 46.30 40,629 3.39 47.69
30,403 2.53 35.68 31,315 2.61 36.75 32,255 2.69 37.86 33,222 2.77 38.99 34,219 2.85 40.16
8,764 0.73 10.29 9,027 0.75 10.60 9,298 0.77 10.91 9,577 0.80 11.24 9,864 0.82 11.58
42,614 3.55 50.02 43,892 3.66 51.52 45,209 3.77 53.06 46,565 3.88 54.65 47,962 4.00 56.29
36,355 3.03 42.67 37,445 3.12 43.95 38,569 3.21 45.27 39,726 3.31 46.63 40,918 3.41 48.03
11,593 0.97 13.61 11,941 1.00 14.01 12,299 1.02 14.44 12,668 1.06 14.87 13,048 1.09 15.31
215,797$ 17.98 253.28 222,270$ 18.52 260.88 228,939$ 19.08 268.71 235,807$ 19.65 276.77 242,881$ 20.24 285.07
353,581$ 29.47 415.00 364,188$ 30.35 427.45 375,114$ 31.26 440.27 386,367$ 32.20 453.48 397,958$ 33.16 467.09
(157,138) -13.09 -184.43 (157,138) -13.09 -184.43 (157,138) -13.09 -184.43 (157,138) -13.09 -184.43 (157,138) -13.09 -184.43
196,443$ 16.37 230.57 207,051$ 17.25 243.02 217,976$ 18.16 255.84 229,230$ 19.10 269.05 240,821$ 20.07 282.65
© 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com
72-sp Sun Terrace MHP For Sale
Benny Spensieri
813-391-1545
Time Net Operating Debt Cash Flow Incomes Cash Flow
Period Income Service Before Tax Taxes After Tax
Int Investment (960,000)$ (960,000)$
Year 1 305,002 - (157,138) 147,864 - 147,864
Year 2 314,152 - (157,138) 157,014 - 157,014
Year 3 323,577 - (157,138) 166,439 - 166,439
Year 4 333,284 - (157,138) 176,146 - 176,146
Year 5 343,282 - (157,138) 186,145 - 186,145
Year 6 353,581 - (157,138) 196,443 - 196,443
Year 7 364,188 - (157,138) 207,051 - 207,051
Year 8 375,114 - (157,138) 217,976 - 217,976
Year 9 386,367 - (157,138) 229,230 - 229,230
Year 10 397,958 - (157,138) 240,821 - 240,821
5860 150th Ave N
Clearwater, FL 33760
MIP Payments
$
$50,000
$100,000
$150,000
$200,000
$250,000
1 2 3 4 5 6 7 8 9 10
Cash Flow After Taxes
Cash Flow Before Taxes
© 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com
72-sp Sun Terrace MHP For Sale
5860 150th Ave N
Clearwater, FL 33760Benny Spensieri
813-391-1545
Time Initial Investment Cash Flow Cash on Cash Income Cash Flow Cash on Cash
Period Adj for Refinance Before Taxes Before Taxes Taxes After Taxes After Taxes
Year 1 960,000$ 147,864$ 15.40% $ 147,864$ 15.40%
Year 2 960,000 157,014 16.36% - 157,014 16.36%
Year 3 960,000 166,439 17.34% - 166,439 17.34%
Year 4 960,000 176,146 18.35% - 176,146 18.35%
Year 5 960,000 186,145 19.39% - 186,145 19.39%
Year 6 960,000 196,443 20.46% - 196,443 20.46%
Year 7 960,000 207,051 21.57% - 207,051 21.57%
Year 8 960,000 217,976 22.71% - 217,976 22.71%
Year 9 960,000 229,230 23.88% - 229,230 23.88%
Year 10 960,000 240,821 25.09% - 240,821 25.09%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
1 2 3 4 5 6 7 8 9 10
After Taxes
Before Taxes
© 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com
72-sp Sun Terrace MHP For Sale
5860 150th Ave N
Clearwater, FL 33760Benny Spensieri
813-391-1545
Time Net Operating Cap Rate on Cost Resale
Period Income (NOI) 3,200,000$ Value
Year 1 305,002$ 9.53% 3,050,020$
Year 2 314,152 9.82% 3,141,521
Year 3 323,577 10.11% 3,235,766
Year 4 333,284 10.42% 3,332,839
Year 5 343,282 10.73% 3,432,824
Year 6 353,581 11.05% 3,535,809
Year 7 364,188 11.38% 3,641,883
Year 8 375,114 11.72% 3,751,140
Year 9 386,367 12.07% 3,863,674
Year 10 397,958 12.44% 3,979,584
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
1 2 3 4 5 6 7 8 9 10
© 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com
72-sp Sun Terrace MHP For Sale
5860 150th Ave N
Clearwater, FL 33760Benny Spensieri
813-391-1545
Time Projected Adj Projected Refi Proceeds Mortgage(s) Sale Proceeds Income Taxes Sale Proceeds Property Year / Year
Period Resale Value Increase (if any) Balance Payoff Before Taxes From Sale After Taxes Equity Equity Increase
Year 1 3,050,020$ -4.69% $ (2,193,813)$ 856,207$ $ 856,207$ 856,207$ (103,793)$
Year 2 3,141,521 3.00% - (2,145,263) 996,257 - 996,257 996,257 140,050
Year 3 3,235,766 3.00% - (2,094,230) 1,141,536 - 1,141,536 1,141,536 145,279
Year 4 3,332,839 3.00% - (2,040,585) 1,292,254 - 1,292,254 1,292,254 150,718
Year 5 3,432,824 3.00% - (1,984,196) 1,448,628 - 1,448,628 1,448,628 156,374
Year 6 3,535,809 3.00% - (1,924,922) 1,610,887 - 1,610,887 1,610,887 162,259
Year 7 3,641,883 3.00% - (1,862,615) 1,779,268 - 1,779,268 1,779,268 168,381
Year 8 3,751,140 3.00% - (1,797,121) 1,954,019 - 1,954,019 1,954,019 174,751
Year 9 3,863,674 3.00% - (1,728,275) 2,135,399 - 2,135,399 2,135,399 181,380
Year 10 3,979,584 3.00% - (1,655,908) 2,323,677 - 2,323,677 2,323,677 188,278
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
1 2 3 4 5 6 7 8 9 10
© 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com
72-sp Sun Terrace MHP For Sale
5860 150th Ave N
Clearwater, FL 33760Benny Spensieri
813-391-1545
Rental Annual Change Annual Change Trapped Return on Hold
Cash Flow in Equity in Net Worth Equity Equity (ROE) Sell
6.00% A B (A + B)
Year 1 147,864 (103,793) 44,071 960,000 4.59% Hold
After Year Year 2 157,014 140,050 297,065 856,207 34.70% Hold
5 Year 3 166,439 145,279 311,718 996,257 31.29% Hold
Year 4 176,146 150,718 326,864 1,141,536 28.63% Hold
Year 5 186,145 156,374 342,519 1,292,254 26.51% Hold
Year 6 196,443 162,259 358,702 1,448,628 24.76% Hold
Year 7 207,051 168,381 375,432 1,610,887 23.31% Hold
Year 8 217,976 174,751 392,727 1,779,268 22.07% Hold
Year 9 229,230 181,380 410,609 1,954,019 21.01% Hold
Year 10 240,821 188,278 429,098 2,135,399 20.09% Hold
Required Return on
EquityTime Period
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
1 2 3 4 5 6 7 8 9 10
Return on Equity (ROE)
© 1993 - 2014 Cash Flow Analyzer® http://RentalSoftware.com
72-sp Sun Terrace MHP For Sale
5860 150th Ave N
Clearwater, FL 33760 Benny Spensieri
813-391-1545
Cash on Cash
Time Period Potential Operating, Debt, Occupancy BreakEven Max Vacancy BreakEven Max Vacancy
Requirement Rental Income Reserve Expenses Rate (Existing) Occupancy Rate BreakEven Rate Occupancy Rate BreakEven Rate
6.00% w/ Cash on Cash w/ Cash on Cash
Year 1 517,000 (343,286) 95.00% 66.40% 33.60% 77.54% 22.46%
Year 2 532,510 (348,870) 95.00% 65.51% 34.49% 76.33% 23.67%
Year 3 548,485 (354,622) 95.00% 64.65% 35.35% 75.16% 24.84%
Year 4 564,940 (360,547) 95.00% 63.82% 36.18% 74.02% 25.98%
Year 5 581,888 (366,649) 95.00% 63.01% 36.99% 72.91% 27.09%
Year 6 599,345 (372,934) 95.00% 62.22% 37.78% 71.83% 28.17%
Year 7 617,325 (379,408) 95.00% 61.46% 38.54% 70.79% 29.21%
Year 8 635,845 (386,076) 95.00% 60.72% 39.28% 69.78% 30.22%
Year 9 654,920 (392,945) 95.00% 60.00% 40.00% 68.79% 31.21%
Year 10 674,568 (400,019) 95.00% 59.30% 40.70% 67.84% 32.16%
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BreakEven Occupancy
BreakEven Occupancy with Cash on Cash Requirment
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Tampa, Fl 33605
Benny Spensieri
CRES Corp International, LLC
CRES Corp International, LLC1228 E 7th Ave0
Commercial Real Estate Services - Development - Management - Financial Services
CRES Corp International, LLC (CCI) is a Commercial Real Estate company offering development, finance and
brokerage services. Our Development Team specializes in health care construction and offers the latest and
most cost effective construction technology.
Our Development specializes in health care, medical, Multi-Family & Hospitality operations and development:
Construction & Development Project Planning
Property Acquisitions
Investment Structuring
Property Conversion and Repositioning
Joint Venture Structuring
Medical/Health Care Property Management
Financial Arrangement & Consulting
To assist our Clients with their development projects and acquisitions we offer affordable financing alternatives
to conventional financing methods:
Variable Rate Demand Bonds
Industrial Revenue & Municipal Bonds
Build-to Lease Program
Foreign Investment Funds
Joint Venture/Equity Partnership Arrangements
Our goal is to bring our Clients the lowest interest rates and best leverage on their purchases and projects.
We will consider the following properties and projects:
Health Care/Medical
Offices
Multi-Family
Schools/Universities
Hospitality
For further information contact Benny Spensieri – 813-391-1545 or [email protected]
Benny Spensieri
813-391-1545
Terms & Definitions
Tampa, Fl 33605
0
CRES Corp International, LLC1228 E 7th Ave
Net Operating Income (NOI) is a property’s gross rental income reduced by all expenses except for loan payments,income taxes, mortgage insurance premium (MIP) payments and sometimes funded reserves.
Debt Coverage Ratio (DCR) is a property’s net operating income divided by the amount of debt payments. Lendersuse this calculation to determine the remaining operating cash flow after the debt payments.
Loan-to-Value Ratio (LTV) is the outstanding debt divided by the value of the property. This ratio is used to determinethe amount of leverage and property equity. The debt balance can be the beginning or end-of-year balance. Theproperty value used can be the contract price or the fair market value at the end of the year.
Capitalization Rate (Cap Rate) is the net operating income (NOI) divided by either the property’s contract purchaseprice or its fair market value.
Cash-on-Cash Return is the net cash flow divided it by the initial investment (down payment). The calculation doesnot take into account the time value of money or change in the property’s equity.
Cash-on-Cash Return with Equity Build-up modifies the cash-on-cash return calculation by adding the property’s netchange in equity for that year to the numerator and adding all previously generated equity to the denominator of thecash-on-cash return ratio. The calculation calculates the return on the property equity, i.e. the return on the cash thatis “tied up” in the property.
Net Present Value (NPV) converts future dollars into present-day dollars by discounting (reducing) the future cash flowof a property by a given rate or percentage. The initial investment (down payment) is subtracted from the discounteddollars to derive the NPV. A positive NPV means that the property will generate a higher return than the given rate orpercentage used to calculate the NPV amount.
Gross Rent Multiplier (GRM) is a property’s fair market value divided by its gross rental income.
Mortgage Insurance Premium (MIP) Payments are insurance premiums charged by a lender to protect that lenderagainst loss from a mortgager's default. The rates are charged on the balance of the loan and may be paid annually,monthly, or in some combination of the two (split premiums).
Internal Rate-of-Return (IRR) is the most widely used method of valuing a property’s annual cash flow stream. Sincea property’s cash flow is earned in the future, those future dollars must be converted to present-day dollars. The IRRcalculation discounts (reduces) the property’s future cash flow at a rate (i.e. percentage) so that the sum of all cashflow for a specified time period is equal to the initial investment. The rate or percentage needed to do that is the IRR.In other words, IRR is the discount rate at which Net Present Value (NPV) is zero.
Modified Internal Rate-of-Return (MIRR) modifies the IRR to avoid the drawbacks of the traditional IRR. The IRRimplicitly assumes that all cash flow is either reinvested or discounted at the computed IRR rate. In reality, a property’scash flow probably will not be reinvested at the computed IRR rate, but rather earn zero or a small amount of interest.The MIRR eliminates the reinvestment assumption by utilizing user stipulated reinvestment and borrowing rates.