Fort St John Sixplex Mitch Collins Century 21

Property Report
Fort St John Sixplex
9705 103 ave
Fort St John, BC V1J 2G9
Presented by:
Mitch Collins
Century 21 Energy Realty Ltd
10756 100 St
Fort St. John, BC V1J 3Z6
Office: (250) 785-8051
Mobile: (250) 262-9338
Fax: (250) 785-2551
[email protected]
www.MitchCollins.com
Your Personal Investment Realtor
For review purposes only, not intended to replace your own diligence.
www.RealEstateTools.com
© 2010-2012 Real Estate Tools
1
Overview
Fort St John Sixplex
9705 103 ave
Fort St John, BC V1J 2G9
Mitch Collins
(250) 785-8051
[email protected]
www.MitchCollins.com
Purchase Info
Total Number of Units
Purchase Price
Initial Cash Invested
Income Analysis
Net Operating Income
Cash Flow
6
$759,900
$281,163
Monthly
$4,602
$2,265
Financial Metrics
Cap Rate (Purchase Price)
Cash on Cash Return (Year 1)
Internal Rate of Return (Year 10)
Sale Price (Year 10)
Annual
$55,229
$27,178
7.3%
9.7%
20.8%
$1,237,797
Beautiful fully renovated 6 plex with room to increase rents by approximately $1,000 per month within walking
distance to all major amenities in booming Fort St John! Siding, windows, doors, interiors and more have been
completed on this property and with today's rent we are showing approximately 7.5% Cap!
Unit 1 - http://youtu.be/ja4XzEORS0Q
Unit 6 - http://youtu.be/sN97zrEnw_A
Take advantage of the coming natural resource boom and pay yourself first by investing in one of the hottest markets
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© 2010-2012 Real Estate Tools
2
Purchase Analysis
Fort St John Sixplex
9705 103 ave
Fort St John, BC V1J 2G9
Mitch Collins
(250) 785-8051
[email protected]
www.MitchCollins.com
Purchase Info
Income
Monthly
Annual
Gross Rent
$7,075
$84,900
Vacancy Loss
($354)
($4,245)
Laundry
$150
$1,800
$265,965
Water charge back
$210
$2,520
$15,198
Operating Income
$7,081
$84,975
Monthly
Annual
Insurance (2%)
($167)
($2,000)
Management Fees (10%)
($708)
($8,498)
Taxes (10%)
($708)
($8,500)
($0)
($0)
Repairs and Maintenance (5%)
($354)
($4,249)
Snow removal / Yard maintenance (2%)
($117)
($1,400)
Garbage Removal (2%)
($125)
($1,500)
Gas/Oil (3%)
($200)
($2,400)
Water/Sewer (1%)
($100)
($1,200)
Operating Expenses (35%)
($2,479)
($29,746)
Net Performance
Monthly
Annual
$4,602
$55,229
($2,338)
($28,050)
($0)
($0)
$2,265
$27,178
Purchase Price
$759,900
- First Mortgage
($493,935)
- Second Mortgage
($0)
= Downpayment
+ Buying Costs
+ Initial Improvements
$0
= Initial Cash Invested
$281,163
Total Number of Units
6
Cost per Unit
$126,650
Average Monthly Rent per Unit
$1,179
Mortgages
First
Second
Loan-To-Value Ratio
65%
0%
$493,935
$0
Loan Amount
Loan Type
Term
Interest Rate
Payment
Amortizing
25 Years
3%
$2,337.53
$0.00
Financial Metrics (Year 1)
Annual Gross Rent Multiplier
Operating Expense Ratio
Expenses (% of Income)
Association Fees (0%)
Net Operating Income
9.0
35.0%
Debt Coverage Ratio
1.97
Cap Rate (Purchase Price)
7.3%
Cash on Cash Return
9.7%
- Mortgage Payments
- Year 1 Improvements
= Cash Flow
Assumptions
Appreciation Rate
5.0%
Vacancy Rate
5.0%
Income Inflation Rate
5.0%
Expense Inflation Rate
3.0%
LTV for Refinance
Selling Costs
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80.0%
$37,995
© 2010-2012 Real Estate Tools
3
Buy and Hold Projection
Fort St John Sixplex
9705 103 ave
Fort St John, BC V1J 2G9
Income
Mitch Collins
(250) 785-8051
[email protected]
www.MitchCollins.com
Year 1
Year 2
Year 3
Year 5
Year 10
Year 20
Year 30
Gross Rent
$84,900
$89,145
$93,602
$103,196
$131,708
$214,538
$349,460
Vacancy Loss
($4,245)
($4,457)
($4,680)
($5,160)
($6,585)
($10,727)
($17,473)
Laundry
$1,800
$1,890
$1,984
$2,188
$2,792
$4,549
$7,409
Water charge back
$2,520
$2,646
$2,778
$3,063
$3,909
$6,368
$10,373
Operating Income
$84,975
$89,224
$93,685
$103,288
$131,824
$214,728
$349,769
Expenses
Year 1
Year 2
Year 3
Year 5
Year 10
Year 20
Year 30
Insurance
($2,000)
($2,060)
($2,122)
($2,251)
($2,610)
($3,507)
($4,713)
Management Fees
($8,498)
($8,922)
($9,368)
($10,329)
($13,182)
($21,473)
($34,977)
Taxes
($8,500)
($8,755)
($9,018)
($9,567)
($11,091)
($14,905)
($20,031)
($0)
($0)
($0)
($0)
($0)
($0)
($0)
Repairs and Maintenance
($4,249)
($4,461)
($4,684)
($5,164)
($6,591)
($10,736)
($17,488)
Snow removal / Yard maintenance
($1,400)
($1,442)
($1,485)
($1,576)
($1,827)
($2,455)
($3,299)
Garbage Removal
($1,500)
($1,545)
($1,591)
($1,688)
($1,957)
($2,630)
($3,535)
Gas/Oil
($2,400)
($2,472)
($2,546)
($2,701)
($3,131)
($4,208)
($5,656)
Water/Sewer
($1,200)
($1,236)
($1,273)
($1,351)
($1,566)
($2,104)
($2,828)
($29,746)
($30,894)
($32,088)
($34,627)
($41,955)
($62,019)
($92,527)
Association Fees
Operating Expenses
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© 2010-2012 Real Estate Tools
4
Buy and Hold Projection
Fort St John Sixplex
9705 103 ave
Fort St John, BC V1J 2G9
Income Analysis
Mitch Collins
(250) 785-8051
[email protected]
www.MitchCollins.com
Year 1
Year 2
Year 3
Year 5
Year 10
Year 20
Year 30
$55,229
$58,330
$61,597
$68,661
$89,869
$152,709
$257,242
($28,050)
($28,050)
($28,050)
($28,050)
($28,050)
($28,050)
($0)
($0)
($0)
($0)
($0)
($0)
($0)
($0)
$27,178
$30,280
$33,547
$40,610
$61,819
$124,658
$257,242
Cap Rate (Purchase Price)
7.3%
7.7%
8.1%
9.0%
11.8%
20.1%
33.9%
Cap Rate (Market Value)
6.9%
7.0%
7.0%
7.1%
7.3%
7.6%
7.8%
Cash on Cash Return
9.7%
10.8%
11.9%
14.4%
22.0%
44.3%
91.5%
Return on Equity
8.6%
8.2%
7.8%
7.4%
6.9%
6.6%
7.8%
Year 1
Year 2
Year 3
Year 5
Year 10
Year 20
Year 30
$797,895
$837,790
$879,679
$969,846
$1,237,797
$2,016,241
$3,284,244
($480,427)
($466,511)
($452,175)
($422,189)
($338,924)
($130,147)
($0)
$317,468
$371,278
$427,504
$547,658
$898,873
$1,886,094
$3,284,244
60.2%
55.7%
51.4%
43.5%
27.4%
6.5%
0.0%
$157,889
$203,720
$251,569
$353,688
$651,314
$1,482,846
$2,627,395
Year 1
Year 2
Year 3
Year 5
Year 10
Year 20
Year 30
Equity
$317,468
$371,278
$427,504
$547,658
$898,873
$1,886,094
$3,284,244
- Selling Costs
($39,895)
($41,889)
($43,984)
($48,492)
($61,890)
($100,812)
($164,212)
= Proceeds After Sale
$277,573
$329,389
$383,520
$499,165
$836,983
$1,785,282
$3,120,032
+ Cumulative Cash Flow
$27,178
$57,458
$91,005
$168,602
$433,096
$1,370,509
$3,288,756
($281,163)
($281,163)
($281,163)
($281,163)
($281,163)
($281,163)
($281,163)
$23,588
$105,684
$193,362
$386,605
$988,916
$2,874,628
$6,127,625
8.4%
18.0%
20.6%
21.6%
20.8%
19.2%
18.6%
8%
38%
69%
138%
352%
1,022%
2,179%
Net Operating Income
- Mortgage Payments
- Improvements
= Cash Flow
Loan Analysis
Market Value
- Loan Balance
= Equity
Loan-to-Value Ratio
Potential Cash-Out Refi
Sale Analysis
- Initial Cash Invested
= Net Profit
Internal Rate of Return
Return on Investment
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© 2010-2012 Real Estate Tools
5
Graphs
Fort St John Sixplex
9705 103 ave
Fort St John, BC V1J 2G9
Mitch Collins
(250) 785-8051
[email protected]
www.MitchCollins.com
Monthly Cash Flow
$20,000
$15,000
$10,000
$5,000
$0
0
5
10
15
Year
Loan Balance +
20
25
30
25
30
25
30
Equity = Market Value
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
0
5
10
15
Year
20
Internal Rate of Return (IRR)
20%
15%
10%
5%
0%
0
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5
10
15
Year
© 2010-2012 Real Estate Tools
20
6
Rent Roll
Fort St John Sixplex
9705 103 ave
Fort St John, BC V1J 2G9
Unit Description
Mitch Collins
(250) 785-8051
[email protected]
www.MitchCollins.com
Square Feet
Units of This Type
Rent (Per Unit)
Suite 1 (3 Bdrm)
0
1
$1,600 Per Month
Suite 2 (3 Bdrm)
0
1
$1,550 Per Month
Suite 3 (Bachelor)
0
1
$975 Per Month
Suite 4 (Bachelor)
0
1
$900 Per Month
Suite 5 (1 Bdrm)
0
1
$1,150 Per Month
Suite 6 (1 Bdrm)
0
1
$900 Per Month
Totals for Year 1
Total Number of Units
6
Total Area (Sum of Units)
0 Square Feet
Total Rent (Sum of Units)
$7,075 Per Month, $84,900 Per Year
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© 2010-2012 Real Estate Tools
7
Photos
Fort St John Sixplex
9705 103 ave
Fort St John, BC V1J 2G9
Mitch Collins
(250) 785-8051
[email protected]
www.MitchCollins.com
Updated exterior and windows!
Side view of the property
Rear of property.
Suite 6 kitchen
Suite 6 bathroom
Suite 6 bdrm
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© 2010-2012 Real Estate Tools
8
Photos
Fort St John Sixplex
9705 103 ave
Fort St John, BC V1J 2G9
Mitch Collins
(250) 785-8051
[email protected]
www.MitchCollins.com
Suite 6 kitchen 2
Unit 2 living room
Unit 2 kitchen
Unit 2 dining area
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Unit 2 bathroom
© 2010-2012 Real Estate Tools
9
Photos
Fort St John Sixplex
9705 103 ave
Fort St John, BC V1J 2G9
Mitch Collins
(250) 785-8051
[email protected]
www.MitchCollins.com
Unit 2 Bdrm 1
Unit 2 Bdrm 2
Unit 2 Bdrm 3
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© 2010-2012 Real Estate Tools
10