Real Estate Project
tv
final_project_template_fall_15-2.xlsx1
| Rent Roll | |||||||||||
| Unit Type | Unit Description | Number of Units | Area Per Unit (sqft) | Monthly Rent/Unit | Total Area (sqft) | Monthly Gross Rent/sqft | Monthly Gross Rent | Annual Gross Rent | |||
| A-1 | 1 BR/1BA | 72 | 688 | 750 | 1.0 | ||||||
| A-2 | 1 BR/1.5 BA | ||||||||||
| A-2A | 1 BR/1 BA | ||||||||||
| Total |
2
| Additional Revenue Sources | ||||||||
| # of Units | Monthly Rent/Unit | Total Monthly Rent | Total Annual Rent | |||||
| Garages | 2.1 | |||||||
| Direct Access | ||||||||
| Assignable | ||||||||
| Detached | ||||||||
| Storage Units | ||||||||
| Carports | ||||||||
| Other | ||||||||
| Total Additional Revenue | ||||||||
| Annual PGI & EGI | ||||||||
| Rental Revenue | ||||||||
| Additional Revenue | ||||||||
| PGI | ||||||||
| Vacancy Loss | ||||||||
| EGI |
3
| Operating Expenses | |||||
| PSF | Per/Year | ||||
| Administration | 0.12 | 2.2 | |||
| Property Taxes | 1.95 | ||||
| Advertising & Promotion | |||||
| Insurance | |||||
| Repairs & Maintenance | |||||
| Management Fee (3.5%) | |||||
| Personnel Expense | |||||
| Utilities | |||||
| Reserves | |||||
| Total Operating Expenses | |||||
| NOI = | 2.3 | ||||
| Property Value | |||||
| Market NOI Rate | |||||
| NOI | |||||
| Market Value | 3.0 | ||||
4
| Loan Term | years | |||
| Frequency of payments per year | ||||
| Annual Interest rate | ||||
| LTV Method | ||||
| LTV | ||||
| Value | ||||
| Maximum Loan Amount by LTV Method | 4.1 | |||
| DCR Method | ||||
| NOI | ||||
| DCR | ||||
| Maximum allowed Debt Service | 4.2 | |||
| Maximum allowed monthly payment | ||||
| Now, for the mortgage loan: | ||||
| PMT | ||||
| N | months | |||
| I | ||||
| Therefore, PV= | ||||
| Maximum Loan Amount by DCR Method | 4.3 | |||
| Amount to be approved | ||||
| Answer: | 4.4 | |||
| Annual Debt Service | 4.5 | |||
5
| Assumptions | ||||||||
| PGI growth Rate | per year | |||||||
| Op Ex growth rate | per year | |||||||
| Going out cap rate | ||||||||
| Selling costs | ||||||||
| Cash Flow From Operations | ||||||||
| Year-0 | Year-1 | Year-2 | Year-3 | Year-4 | Year-5 | Year-6 | ||
| PGI | ||||||||
| Vacancy Loss | ||||||||
| EGI | ||||||||
| Operating Expenses | ||||||||
| NOI | ||||||||
| ADS | ||||||||
| Cash Flow frpm Operations | ||||||||
| Cost of Acquisition | ||||||||
| Bank Loan | ||||||||
| Equity Investment | ||||||||
| Future Sale Price | ||||||||
| Selling Costs | ||||||||
| Loan Balance | ||||||||
| Cash Flow from Sale | ||||||||
| BTCF | ||||||||
| IRR | 5.a. | |||||||
| NPV @ loan rate | 5.b. | |||||||
| NPV @ IRR | 5.c. | |||||||
| 6: Synopsis & Recommendation |
