financial analysis preview - apartment community
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8/9/2019 Financial Analysis Preview - Apartment Community
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FinancialAnalysisforManagementPlanPreparedFor:Sample
PreparedBy:myHomeSpot.com
PreparedDate:
Section:Overview
Expenses
2.Theaveragedaysonthemarketforeachunitis30days
3.Latefeeswillincreaseto$1,350permonth
4.Turnoverratioincreasesfrom1.3to1.75
1.Themarketrateforeachunitis$550permonth
FinancialAnalysisOverviewThefollowingassumptionsaremadeinthisanalysis:
1.A15%reductioninvariableexpenses
2.A40%reductioninwaterexpense
3.A25%reductioninpayrollexpense
4.Aloanmodificationisexecuteddecreasingtheinterestrateby50basispoints
5.
A
50%
reduction
in
accounting
expenses
6.Theeliminationoftheexistingmanagementfee(Approximately$2,847permo.)
7.AdditionofmyHomeSpot.com,LLCmanagementfees(Variable,see"Statement Projected"section)
8.Areductionintravelexpenseto$0
Revenues
Analysis"section.
5.Defaultratiodecreasesfrom8%to6%
6.Rateofrentincreasegoesfrom1%to1.5%
SensitivityAnalysis:
Underthebestcasescenarioforecastedrevenueswillbe3%higherandexpenseswillbe3%lowerthanprojected.
Undertheexpectedscenarioforecastedrevenueswillbe0%higherandexpenseswillbe0%lowerthanprojected.
Underthebestcasescenarioforecastedrevenueswillbe3%lowerandexpenseswillbe3%higherthanprojected.
*Sensitivityanalysischangesarenotreflectedinthe"Statement Projected"section. Changesarereflectedinthe"Investment
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8/9/2019 Financial Analysis Preview - Apartment Community
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FinancialAnalysisforManagementPlanPreparedFor:Sample
PreparedBy:myHomeSpot.com
PreparedDate:
Section:Investor&PropertyInformation
Name
SampleApartments Purchase
Price 1,300,000$
Selling
Expens
Address 1234PeachtreeSt ClosingCost 12,000$ AnnualRateo
City,StateZip Atlanta,GA30342 OriginalLoanAmount 700,000$ InflationAdju
CurrentManager SelfManaged InitialInvestment 612,000$ DispositionCa
DateofAnalysis 1/1/2010 DateofAcquisition 2/1/2008
OnSiteStaff (YorN) Yes DateofLoanProcurement 2/1/2008
Ifyeslisttitleofstaffbelow: Type(InterestOnlyorAmortized) InterestOnly Reinvestment
StaffMember#1 N/A Rate 7.00% DiscountRate
StaffMember#2 N/A AmortizationPeriod 240
StaffMember#3 N/A Term(Mo.) 120
PropertyStatistics AdditionalLeverage($) 50,000$
DispositGeneralPropertyInformation Acquisition&FinancingInformation
PropertyType GardenStyle Type(InterestOnlyorAmortized) InterestOnly
PropertyAge 1981 DateofLoanProcurement 1/1/2008
NumberofBuildings 8 Rate 9.00%
NumberofUnits 32 AmortizationPeriod 120
ParkingType Lot Term(Mo.) 120
Features&Amenities 1031Exchange(YorN) YPool No OriginalBasis 700,000$
Count: 0 InvestorTaxRate 35%
Tennis No PercentDepreciable 75%
Count: 0 CommercialorResidential Commercial
ClubHouse No
Count: 0
FitnessCenter No
Count: 0
Pond/WaterFeature No
Count: 0
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8/9/2019 Financial Analysis Preview - Apartment Community
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FinancialAnalysisforManagementPlanPreparedFor:Sample
PreparedBy:myHomeSpot.com
PreparedDate:
Section:Revenues
UnitType Rent
Rate #
in
Community %
of
Total Parking
Income $
1Bed1Bath 500$ 7 29.2% Latecharges 325$
2Bed1Bath 575$ 9 37.5% DepositForfeit $
2Bed2Bath 600$ 4 16.7% Application 75$
3Bed2Bath 650$ 4 16.7% UtilityContracts $
N/A $ 0 0.0% Other $
N/A $ 0 0.0% Other $
N/A $ 0 0.0% Total 400$N/A $ 0 0.0%
N/A $ 0 0.0%
N/A $ 0 0.0% DefaultRatio(Yr.)
Totals 569.79$ 24 100.0% AverageTenantTenure(Yrs.) TotalUnits
TotalPotentialRent 18,325$
UnitType RentRate #inCommunity %ofTotal CurrentGrossCollectedRent 13,675$
1Bed1Bath 500$ 2 25.0% CurrentVacancyRate 2
UnitStatistics
OccupiedUnitInformation
VacantUnitInformation
AdditionalSourcesofRev.(mo.
2Bed1Bath 575$ 2 25.0% CurrentVacancy(Economic) 2
2Bed2Bath 600$ 2 25.0% AverageRentRate $
3Bed2Bath 650$ 2 25.0% %Rev(NonRentSources)
N/A $ 0 0.0%
N/A $ 0 0.0%
N/A $ 0 0.0%
N/A $ 0 0.0%
N/A $ 0 0.0%
N/A $ 0 0.0%
Totals 581.25$ 8 100.0%
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8/9/2019 Financial Analysis Preview - Apartment Community
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FinancialAnalysisforManagementPlanPreparedFor:Sample
PreparedBy:myHomeSpot.com
PreparedDate:
Section:Expenses
Category Quantity
PrimaryNotePayment 4,083$ OperationalMgmt 7% Refrigerators
SecondNote 375$ LeasingMgmt 75% Stoves
RenewalMgmt 25% HVAC
PropertyTaxes 1,000$ Carpeting
Assessments/Fees 100$ N/A $ Roof(SF) 10,0
N/A $ ParkingArea(SF) 17,0
PropertyInsurance 750$ N/A $ WaterHeaters
Advertising 50$ ExteriorPaint
Legal 220$
Pool
$
Pool
Accounting 350$ Tennis $ FitnessEquipment
ExpenseInformation ReFinance Management
Operating
Government
CAM
Personnel
Utilities 115$ ClubHouse $ Other
Maintenance&Repairs 1,100$ FitnessCenter $ Other
Turnover(PerUnit) Pond/WaterFeature $ TotalReservePaint 400.00$ Contingency
Cleaning 50.00$ ReserveAccount 1,153.74$ AdjustedTotalCarpetClean 35.00$
Misc.#1 $
Reserves
Misc.
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8/9/2019 Financial Analysis Preview - Apartment Community
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FinancialAnalysisforManagementPlanPreparedFor:Sample
PreparedBy:myHomeSpot.com
PreparedDate:
Section:Projections
Adjustment Adjustment TotalLoans
O
PrimaryNotePayment 4,083$ 4,078$ OperationalMgmt 7% 7% NewLoanAm
SecondNote 375$ 530$ LeasingMgmt 75% 75% RefinanceDat
NetChange: 150$ RenewalMgmt 25% 25% InterestOnlyNetChange: N/A Rate
PropertyTaxes 1,000$ 1,000$ Amortization
SpecialAssessments 100$ 100$ N/A $ $ Term(Mo.)
NetChange: $ N/A $ $ Cost Operating N/A $ $ AdditionalLev
PropertyInsurance 750$ 700$ NetChange: $ InterestOnly
Personnel
Management:
AdjExpenseInformationFinance
Government
A vertising
50
50
Rate
Legal 220$ 220$ Pool $ $ RefinanceDat
Accounting 350$ 350$ Tennis $ $ Amortization
Utilities 115$ 115$ ClubHouse $ $ Term(Mo.)
Maintenance&Repairs 1,100$ 1,000$ FitnessCenter $ $ Cost
NetChange: (150)$ Pond/WaterFeature $ $Turnover NetChange: $
Paint(perUnit) 400.00$ 375.00$ ParkingIncom
Cleaning(perUnit) 50.00$ 45.00$ Total 1,153.74$ 1,153.74$ Latecharges
CarpetClean(perUnit) 35.00$ 35.00$ DepositForfe
NetChange: (30.00)$ Misc.#1 $ ApplicationCapImprovement&Refi 9,649$ UtilityContrac
Other
Other
Misc.
CAM
Reserves
Adjus
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8/9/2019 Financial Analysis Preview - Apartment Community
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FinancialAnalysisforManagementPlanPreparedFor:Sample
PreparedBy:myHomeSpot.com
PreparedDate:
Section:Projections
ExpenseInformationFinance Adjustment Management: Adjustment
PrimaryNotePayment 4,083$ 4,078$ OperationalMgmt 7% 7%
SecondNote 375$ 530$ LeasingMgmt 75% 75%
NetChange: 150$ RenewalMgmt 25% 25%Government NetChange: N/A
PropertyTaxes 1,000$ 1,000$ Personnel
SpecialAssessments 100$ 100$ N/A $ $
NetChange: $ N/A $ $Operating N/A $ $
PropertyInsurance 750$ 700$ NetChange: $Advertising
50$
50$
CAM
Legal 220$ 220$ Pool $ $
Accounting 350$ 350$ Tennis $ $
Utilities 115$ 115$ ClubHouse $ $
Maintenance&Repairs 1,100$ 1,000$ FitnessCenter $ $
NetChange: (150)$ Pond/WaterFeature $ $Turnover NetChange: $
Paint(perUnit) 400.00$ 375.00$ Reserves
Cleaning(perUnit) 50.00$ 45.00$ Total 1,153.74$ 1,153.74$
CarpetClean(perUnit) 35.00$ 35.00$ Misc.
NetChange:
(30.00)$
Misc.
#1
$
CapImprovement&Refi 9,649$
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8/9/2019 Financial Analysis Preview - Apartment Community
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FinancialAnalysisforManagementPlanPreparedFor:Sample
PreparedBy:myHomeSpot.com
PreparedDate:
Section:Projectionscontinued
AdjustmentstoFinancing PropertyPerformance/RentRateAdjustmentTotal
Loans
Outstanding 724,913$
Current
Potential
NewLoanAmount 724,913$ AverageTenantTenure 1.5 1.8
RefinanceDate 5/1/2009 DefalutRate 5.0% 3%
nterestOnly(YoN) Y Vacancy(Economic) 25.4% 20%
Rate 6.75% StabalizedVacancy(Economic) 89%
AmortizationPeriod 240 RateofRentIncrease 0.00% 0.5%
Term(Mo.) 120 UnitType CurrentRate PotentialRate
Cost 1.0% 1Bed1Bath 500$ 550.00$
AdditionalLeverage($) 50,000$ 2Bed1Bath 575$ 620.00$
nterestOnly(YoN) n 2Bed2Bath 600$ 640.00$
Rate 5.00% 3Bed
2Bath 650$
685.00$
RefinanceDate 5/1/2009 N/A $
AmortizationPeriod 120 N/A $
Term(Mo.) 120 N/A $
Cost 1.0% N/A $
N/A $
AdjustmenttoAdditionalRev. N/A $ParkingIncome $
Latecharges 325.00$ CapImprovement&AdditionalCostDepositForfeit $ CapImprovement#1 1,000.00$
Application
75.00$
Cap
Improvement
#2 900.00$
UtilityContracts $ CapImprovement#3 $
Other $ CapImprovement#4 $
Other $ CapImprovement#5 $
Total 400.00$ Total 1,900.0$CosttoAdjustFinancing 7,749.1$
AdjustedTotal 9,649.1$
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8/9/2019 Financial Analysis Preview - Apartment Community
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FinancialAnalysisforManagementPlanPreparedFor:Sample
PreparedBy:myHomeSpot.com
PreparedDate:
Section:Statement Current
Year1 Year2 Year3 Year4 Year5
RevenuesPotentialRentalIncome 219,900.00$ 219,900.00$ 219,900.00$ 219,900.00$ 219,900.00$
OtherIncome 4,800.00$ 4,800.00$ 4,800.00$ 4,800.00$ 4,800.00$
Vacancy(%ofTotal$) 55,800.00$ 55,800.00$ 55,800.00$ 55,800.00$ 55,800.00$
TenantDefault 8,205$ 8,205$ 8,205$ 8,205$ 8,205$
GrossOperatingIncome 160,695.00$ 160,695.00$ 160,695.00$ 160,695.00$ 160,695.00$Expenses
Government
PropertyTaxes 12,000$ 12,360$ 12,731$ 13,113$ 13,506$
Assessments/Fees 1,200$ 1,236$ 1,273$ 1,311$ 1,351$
Operating
PropertyInsurance 9,000$ 9,270$ 9,548$ 9,835$ 10,130$
Advertising 600$ 618$ 637$ 656$ 675$
Legal 2,640$ 2,719$ 2,801$ 2,885$ 2,971$
Accounting 4,200$ 4,326$ 4,456$ 4,589$ 4,727$
Utilities 1,380$ 1,421$ 1,464$ 1,508$ 1,553$
Maintenance&Repairs 13,200$ 13,596$ 14,004$ 14,424$ 14,857$
Turnover
Paint 6,400$ 6,592$ 6,790$ 6,993$ 7,203$
Cleaning 800$ 824$ 849$ 874$ 900$
Carpet
Clean 560$
577$
594$
612$
630$
Management
Operations 11,487$ 11,487$ 11,487$ 11,487$ 11,487$
Leasing 9,163$ 9,163$ 9,163$ 9,163$ 9,163$
Renewals 1,527$ 1,527$ 1,527$ 1,527$ 1,527$
Personnel
N/A $ $ $ $ $
N/A $ $ $ $ $
N/A $ $ $ $ $
CAM
Pool $ $ $ $ $
Tennis
$
$
$
$
$
ClubHouse $ $ $ $ $
FitnessCenter $ $ $ $ $
Pond/WaterFeature $ $ $ $ $
Misc.
Misc.#1 $ $ $ $ $
TotalOperatingExpense 74,157$ 75,716$ 77,322$ 78,977$ 80,681$NetOperatingIncome 86,538$ 84,979$ 83,373$ 81,718$ 80,014$
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8/9/2019 Financial Analysis Preview - Apartment Community
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FinancialAnalysisforManagementPlanPreparedFor:Sample
PreparedBy:myHomeSpot.com
PreparedDate:
Section:Statement CurrentContinued
Less:
1st
Mtg. 49,000$
49,000$
49,000$
49,000$
49,000$
2ndMtg. 4,500$ 4,500$ 4,500$ 4,500$ 4,500$
Less:
ReserveAccount 13,845$ 14,260$ 14,260$ 14,260$ 14,260$
BeforeTaxCashFlow 19,194$ 17,219$ 15,613$ 13,958$ 12,254$Add:
MortgagePrincipal 19,884$ 21,391$ 23,014$ 24,761$ 26,642$
Less:
DepreciationExp. 25,000$ 25,000$ 25,000$ 25,000$ 25,000$
InterestExp. 52,841$ 51,334$ 49,414$ 47,965$ 46,084$
TaxableIncome (38,763)$ (37,724)$ (35,788)$ (34,246)$ (32,188)$TaxLiability(Savings)@
35% (13,567)$ (13,203)$ (12,526)$ (11,986)$ (11,266)$
AfterTaxCashFlow 32,761$ 30,422$ 28,138$ 25,944$ 23,520$
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8/9/2019 Financial Analysis Preview - Apartment Community
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FinancialAnalysisforManagementPlanPreparedFor:Sample
PreparedBy:myHomeSpot.com
PreparedDate:
Section:Statement Potential
Year1 Year2 Year3 Year4 Year5
RevenuesPotentialRentalIncome 236,640.00$ 237,823.20$ 239,012.32$ 240,207.38$ 241,408.41$
OtherIncome 4,800.00$ 4,800.00$ 4,800.00$ 4,800.00$ 4,800.00$
Vacancy(%ofTotal$) 189,312.00$ 26,160.55$ 26,291.35$ 26,422.81$ 26,554.93$
TenantDefault 1,420$ 6,350$ 6,382$ 6,414$ 6,446$
GrossOperatingIncome 50,708.16$ 210,112.77$ 211,139.33$ 212,171.03$ 213,207.88$Expenses
Government
PropertyTaxes 12,000$ 12,360$ 12,731$ 13,113$ 13,506$
Assessments/Fees 1,200$ 1,236$ 1,273$ 1,311$ 1,351$
Operating
PropertyInsurance 8,400$ 8,652$ 8,912$ 9,179$ 9,454$
Advertising 600$ 618$ 637$ 656$ 675$
Legal 2,640$ 2,719$ 2,801$ 2,885$ 2,971$
Accounting 4,200$ 4,326$ 4,456$ 4,589$ 4,727$
Utilities 1,380$ 1,421$ 1,464$ 1,508$ 1,553$
Maintenance&Repairs 12,000$ 12,360$ 12,731$ 13,113$ 13,506$
Turnover
Paint 1,333$ 6,111$ 6,295$ 6,484$ 6,678$
Cleaning 160$ 733$ 755$ 778$ 801$
Carpet
Clean 124$
570$
588$
605$
623$
Management
OperationalMgmt 3,313$ 14,816$ 14,890$ 14,965$ 15,040$
LeasingMgmt 8,217$ 8,258$ 8,299$ 8,341$ 8,382$
RenewalMgmt 2,191$ 2,202$ 2,213$ 2,224$ 2,235$
Personnel
N/A $ $ $ $ $
N/A $ $ $ $ $
N/A $ $ $ $ $
CAM
Pool $ $ $ $ $
Tennis
$
$
$
$
$
ClubHouse $ $ $ $ $
FitnessCenter $ $ $ $ $
Pond/WaterFeature $ $ $ $ $
Misc.
Misc.#1 $ $ $ $ $
TotalOperatingExpense 57,758.52$ 76,383.89$ 78,043.50$ 79,749.74$ 81,503.99$NetOperatingIncome (7,050.36)$ 133,728.88$ 133,095.83$ 132,421.29$ 131,703.89$
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8/9/2019 Financial Analysis Preview - Apartment Community
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FinancialAnalysisforManagementPlanPreparedFor:Sample
PreparedBy:myHomeSpot.com
PreparedDate:
Section:Statement PotentialContinued
Less:
CapitalImprovements 1,900.00$ $ $ -$ $
Cost
to
Refinance 7,749.13$
$
$ -$
$
Less:
1stMtg. 48,931.66$ 48,931.66$ 48,931.66$ 48,931.66$ 48,931.66$
2ndMtg. 6,363.96$ 6,363.96$ 6,363.96$ 6,363.96$ 6,363.96$
Less:
ReserveAccount 13,844.92$ 13,844.92$ 13,844.92$ 13,844.92$ 13,844.92$
BeforeTaxCashFlow (85,840.03)$ 64,588.35$ 63,955.30$ 63,280.76$ 62,563.36$Add:
MortgagePrincipal 17,754.71$ 18,990.94$ 20,313.24$ 21,727.61$ 23,240.47$
Less:
DepreciationExp. 25,000.00$
25,000.00$
25,000.00$
25,000.00$
25,000.00$
InterestExp. 48,389.05$ 47,152.82$ 45,830.52$ 44,416.15$ 42,903.29$
TaxableIncome (141,474.37)$ 11,426.47$ 13,438.02$ 15,592.22$ 17,900.54$TaxLiability(Savings)@
35% (49,516.03)$ 3,999.26$ 4,703.31$ 5,457.28$ 6,265.19$
AfterTaxCashFlow (36,324.00)$ 60,589.08$ 59,251.99$ 57,823.48$ 56,298.17$
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8/9/2019 Financial Analysis Preview - Apartment Community
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FinancialAnalysisforManagementPlanPreparedFor:Sample
PreparedBy:myHomeSpot.com
PreparedDate:
Section:InvestmentAnalysis
AnalysisPeriod (1 5) 4
ProjectedDispositionDate 12/31/2013
SensitivityAnalysis Ratio/MultiplierAnalysis
Revenue Expense Current Potential
%DifferentthanForcasted 0% 0% RatioAnalysis
Debtcoverageratio 1.53 2.
ProjectSummary DefaultRatio 0.82 0.
Current Potential Operatingexpenseratio 0.49 0.
GrossOperatingIncome 160,695.00$ 212,171.03$ Multipliers
TotalOperatingExpense 78,976.53$ 79,749.74$ Grossincomemultiplier 8.09 6.
NetOperatingIncome 81,718.47$ 132,421.29$ Netincomemultiplier 15.91 9.
TotalDebt
Service 53,500.00$
55,295.62$
LoanBalance@Disposition 610,566.42$ 662,903.31$ Valuation
BeforeTaxCashFlow 13,958.20$ 63,280.76$ DirectCapitalizationMethod Current PotentialAfterTaxCashFlow 25,944.39$ 57,823.48$ PropertyCapRate 6.29% 10.19
DispositionSummary Value@DispositionCap 1,021,480.84$ 1,655,266.1$
Current Potential DiscountedCashFlowMethodBTCF@Disposition 380,270$ 942,705$ BeforeTaxNPV (319,570)$ 47,46$
ATCF@Disposition 243,477$ 590,742$ AfterTaxNPV (367,313)$ (141,93$
Rateof
Return
Analysis
Current Potential
Avg.RateofReturn(BTCF) 18.23% 42.84
Avg.RateofReturn(ATCF) 14.74% 29.9
InternalRateofReturn(BTCF) 8.01% 14.04
InternalRateofReturn(ATCF) 13.84% 4.69
CapitalAccumulation
Current Potential
CapitalAccumulated N/A N/A
AnnualGrowth
rate
of
Capital N/A N/A
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