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    Buford Starbucks

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    RESHMA
    The document summarizes the acquisition and projected financial performance of a multi-family property purchased for $1.731 million in December 2023. It is projected to generate $90,506 in net operating income annually over the first 10 years with a 6.99% unlevered internal rate of return. The property will be sold in year 10 for $2.261 million, realizing a 1.77x equity multiple and 5.4% average cash-on-cash return. The property maintains over a 1.3 debt service coverage ratio throughout ownership.

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    Buford Starbucks

    Uploaded by

    RESHMA
    15 views7 pages
    The document summarizes the acquisition and projected financial performance of a multi-family property purchased for $1.731 million in December 2023. It is projected to generate $90,506 in net operating income annually over the first 10 years with a 6.99% unlevered internal rate of return. The property will be sold in year 10 for $2.261 million, realizing a 1.77x equity multiple and 5.4% average cash-on-cash return. The property maintains over a 1.3 debt service coverage ratio throughout ownership.

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    The document summarizes the acquisition and projected financial performance of a multi-family property purchased for $1.731 million in December 2023. It is projected to generate $90,506 in net operating income annually over the first 10 years with a 6.99% unlevered internal rate of return. The property will be sold in year 10 for $2.261 million, realizing a 1.77x equity multiple and 5.4% average cash-on-cash return. The property maintains over a 1.3 debt service coverage ratio throughout ownership.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    15 views7 pages

    Buford Starbucks

    Uploaded by

    RESHMA
    The document summarizes the acquisition and projected financial performance of a multi-family property purchased for $1.731 million in December 2023. It is projected to generate $90,506 in net operating income annually over the first 10 years with a 6.99% unlevered internal rate of return. The property will be sold in year 10 for $2.261 million, realizing a 1.77x equity multiple and 5.4% average cash-on-cash return. The property maintains over a 1.3 debt service coverage ratio throughout ownership.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 7

    Acquisition Information Possible Discou Year Acquisition 1

    Purchase Price $1,731,818 $50,000.00 Month Ending 12/20/23 12/31/2024


    Closing Costs $34,636
    Acquisition Date 12/20/2023 Revenue
    Going-In Cap Rate 5.23% Gross Potential Revenue $98,004
    Likely Insurance Cost $2,597.73 General Vacancy ($4,900)
    Operating Metrics Effective Gross Revenue $93,104
    General Vacancy 5.00%
    Square Footage 2,888 Expenses
    Gross Potential Rent/SF/Year $33.94 Operating Expenses ($2,598)
    Annual Rent Growth 1.20% Total Operating Expenses ($2,598)
    Operating Expenses/SF/Year $0.90
    Annual Expense Growth 2.00% Net Operating Income $90,506
    Capital Expense Reserve/SF/Year $0.00
    Capital Expense Reserve Growth 0.00% Capital Expenses
    Down Payment $865,909 Capital Expense Reserve $0
    Loan Information Total Capital Expenses $0
    LTV 50%
    Loan Amount $865,909 Cash Flow Before Debt Service $90,506
    Loan Fees 0.00%
    Interest Rate 7.25% Acquisition & Sale Information
    Amortization 30 Years Property Acquisition ($1,731,818)
    Closing Costs ($34,636)
    Sale Information Sale Proceeds $0
    Exit Cap Rate 4.50% Costs of Sale $0
    Costs of Sale 4.00% Unlevered Net Cash Flow ($1,766,454) $90,506
    Sale Year Year 10
    Financing Information
    Unlevered Return Metrics Acquisition Loan Proceeds $865,909
    IRR 6.99% Loan Fees $0
    Equity Multiple 1.77x Principal Payment ($8,381)
    Average Cash-on-Cash Return 5.40% Interest Payment ($62,504)
    Loan Payoff $0
    Levered Return Metrics Levered Net Cash Flow ($900,545) $19,622
    IRR 6.85% Unlevered Cash-on-Cash Return . 5.1%
    Equity Multiple 1.85x Levered Cash-on-Cash Return 2.2%
    Average Cash-on-Cash Return 2.73%
    Annual cashflow after paying mortage
    and expenses $ 18,867.34
    DSCR 1.31
    2 3 4 5 6 7 8 9
    12/31/2025 12/31/2026 12/31/2027 12/31/2028 12/31/2029 12/31/2030 12/31/2031 12/31/2032

    $99,180 $100,370 $101,575 $102,794 $104,027 $105,276 $106,539 $107,817


    ($4,959) ($5,019) ($5,079) ($5,140) ($5,201) ($5,264) ($5,327) ($5,391)
    $94,221 $95,352 $96,496 $97,654 $98,826 $100,012 $101,212 $102,427

    ($2,650) ($2,703) ($2,757) ($2,812) ($2,868) ($2,925) ($2,984) ($3,044)


    ($2,650) ($2,703) ($2,757) ($2,812) ($2,868) ($2,925) ($2,984) ($3,044)

    $91,572 $92,649 $93,739 $94,842 $95,958 $97,086 $98,228 $99,383

    $0 $0 $0 $0 $0 $0 $0 $0
    $0 $0 $0 $0 $0 $0 $0 $0

    $91,572 $92,649 $93,739 $94,842 $95,958 $97,086 $98,228 $99,383

    $0 $0 $0 $0 $0 $0 $0 $0
    $0 $0 $0 $0 $0 $0 $0 $0
    $91,572 $92,649 $93,739 $94,842 $95,958 $97,086 $98,228 $99,383

    ($9,009) ($9,684) ($10,410) ($11,191) ($12,029) ($12,931) ($13,900) ($14,942)


    ($61,875) ($61,200) ($60,474) ($59,694) ($58,855) ($57,953) ($56,984) ($55,942)
    $0 $0 $0 $0 $0 $0 $0 $0
    $20,687 $21,765 $22,855 $23,958 $25,074 $26,202 $27,344 $28,499
    5.2% 5.2% 5.3% 5.4% 5.4% 5.5% 5.6% 5.6%
    2.3% 2.4% 2.5% 2.7% 2.8% 2.9% 3.0% 3.2%
    $ 19,891.66 $ 20,927.87 $ 21,976.11 $ 23,036.52 $ 24,109.22 $ 25,194.36 $ 26,292.09 $ 27,402.54
    10 11 12 Break Even Occupancy
    12/31/2033 12/31/2034 12/31/2035 Average Break-Even Occupancy
    Maximum Break-Even Occupancy

    $109,111 $110,421 $111,746


    ($5,456) ($5,521) ($5,587)
    $103,656 $104,900 $106,158

    ($3,105) ($3,167) ($3,230)


    ($3,105) ($3,167) ($3,230)

    $100,551 $101,733 $102,928

    $0 $0 $0
    $0 $0 $0

    $100,551 $0 $0

    $2,260,733 $0 $0
    ($90,429) $0 $0
    $2,270,855 $0 $0

    ($16,062) $0 $0
    ($54,822) $0 $0
    ($747,369) $0 $0
    $1,452,601 $0 $0
    5.7% 0.0% 0.0%
    3.3% 0.0% 0.0%
    $ 28,525.85

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