Green Bay MFH Analysis Advices?
Hi fellows,
I'm currently talking to a broker in Green Bay, he is proposing me this revised analysis on this property. I'm still new at this kind of investment, and I'm on the learning curve here. I've already posted the first proposal, in the "Multi-Family and Apartment Investing Forums" I got some good real-estate pieces of advice 2 days ago. Here is the link to my previous post. (I've tried to bump the 5% maintenance to 10% with Cap X/repairs and he viewed as unnecessary... Hum)
After, I went back with some numbers and a more creative approach. Below is the new proposal. Any thought? Also, What should I be more cautious about this 2snd proposal? It seems to little be above the 1% rule, If Am I correct?
550x 4 month:$2,200.00 Yr:$26,400.00
Total $26,400.00 -
Income
Rental Income $26,400.00
Coin-op $1,200.00
Vacancy/ Credit Allowance 5% $1,320.00
Total Income $26,280.00
Expenses -Best guess and ests totals
(5% min $200)
Management $2,400.00
Utilities Water Power $3,436.00
Maintenance $2,640.00
Insurance $1,500.00
Property Tax $3,447.00
Total Expenses $13,423.00
Total Expenses $13,423.00
NET OPERATING INCOME $12,857.00
Returns Analysis
Capitalization Rate 9.89%
Project Cost $130,000.00
Price Per SF $50.00
Debt Amount $104,000.00
Equity Required 20% $26,000.00
Debt Service $7,895.46
Net Operating Income $12,857.00
Net Cash Flow $4,961.54
Leveraged Return on Equity 19.08% $64,022 net worth accumulation
Principal Payment- 1st Year $3,282.67
Return on Equity after Principal Payment 31.71% $66,660.35
DSCR 1.6284033
Year 1 $8,244.21
Year 2 $10,239.54
Year 3 $13,061.54
Year 4 $16,013.54
Year 5 $19,101.54
Thanks in advance for taking the time to look at this deal.