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TRANSCRIPT
OFFERING MEMORANDUM
West Milton RdMHP
142 West Milton RdBallston Spa, NY 12020
West Milton Rd MHPCONTENTS
Exclusively Marketed by:
Steven Tomaso
We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or otherconditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct yourown investigation of the property and transaction.
01 Executive Summary Investment Summary 5 Location Summary 6
02 Property Description Aerial Map 8
03 Rent Roll Rent Roll Details 10
04 Financial Analysis Income & Expense Analysis 12 Multiyear Cash Flow Assumptions 13 Cash Flow Analysis 14
The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from IRE Investment and it shouldnot be made available to any other person or entity without the written consent of IRE Investment. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees thatrecipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to IRE Investment.This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest inthe subject property. The information contained herein is not a substitute for a thorough due diligence investigation. IRE Investment has not made any investigation, and makes no warranty or representation withrespect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presenceor absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or financial condition orbusiness prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe reliable; however, IRE Investment has not verified, and will not verify, any of the informationcontained herein, nor has IRE Investment conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness ofthe information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses ofinvestigating the subject property.
West Milton Rd MHP Confidentiality and Disclaimer | 03
CONFIDENTIALITY AND DISCLAIMER:
PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT IRE INVESTMENT FOR MORE DETAILS.Copyright © 2019 CREOP, LLC. All Rights Reserved.
West M
ilton Rd M
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mary
Executive Summary
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Investment Summary
Location Summary
West Milton Rd MHP Investment Summary | 05
OFFERING SUMMARYADDRESS 142 West Milton Rd
Ballston Spa NY 12020COUNTY SaratogaNUMBER OF UNITS 25
FINANCIAL SUMMARYOFFERING PRICE $899,000PRICE PER UNIT $35,960OCCUPANCY 88.00 %NOI (CURRENT) $67,994NOI (2020) $76,997CAP RATE (CURRENT) 7.56 %CAP RATE (2020) 8.56 %GRM (CURRENT) 6.81GRM (2020) 6.61
PROPOSED FINANCINGLOAN TYPE Interest OnlyDOWN PAYMENT $269,700LOAN AMOUNT $629,300INTEREST RATE 5.00 %ANNUAL DEBT SERVICE $31,465LOAN TO VALUE 70 %
This is an excellent opportunity to own an MHP in the fastest growingcounty in NY! Saratoga County has nearly a 5% year over yearpopulation growth.
*All resident owned homes
*Paved Roads
*Recent home sales
*Stabilized property
West Milton Rd MHP Location Summary | 06
*Saratoga County MHP*Fastest growing population in NY*Ballston Spa School District is very desirable*Many recent home sales*Economics for new home sales is very good with highmedian home sale prices
Regional Map
Locator Map
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escription
Property Description
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Aerial Map
West Milton Rd MHP Aerial Map | 08
West M
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ent Roll
Rent Roll
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Rent Roll Details
Lot number Rent Type Rent amount
1 Lot rent $440
2 Lot rent $440
3 Lot rent $440
4 Lot rent $440
5 Lot rent $440
6 Lot rent $440
7 Lot rent $440
8 Lot rent $440
9 Lot rent $440
10 Lot rent $440
11 Lot rent $440
12 Lot rent $440
13 Lot rent $440
14 Lot rent $440
15 Vacant $0
16 Vacant $0
17 Vacant $0
18 Lot rent $440
19 Lot rent $440
20 Lot rent $440
21 Lot rent $440
22 Lot rent $440
23 Lot rent $440
24 Lot rent $440
25 Lot rent $440
West Milton Rd MHP
West Milton Rd MHP Rent Roll Details | 10
West M
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Financial Analysis
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Income & Expense
Multiyear Cash Flow Assumptions
Multiyear Cash Flow Projections
West Milton Rd MHP Income & Expense Analysis | 12
INCOME CURRENT 2020Gross Potential Income $132,000 $135,960
Less: General Vacancy $15,840 $10,877
Effective Gross Income $116,160 $125,083
Less: Expenses $48,166 $48,086
Net Operating Income $67,994 $76,997
Annual Debt Service $31,465 $31,465
Debt Coverage Ratio 2.16 2.45
Cash Flow After Debt Service $36,529 $45,532
Income Notes: Pro-forma includes a 3% lot rent increase with one new home sale in the property.
EXPENSES CURRENT 2020
Real Estate Taxes $572 $14,306 $572 $14,306
Insurance $44 $1,100 $44 $1,100
Management Fee $211 $5,280 $208 $5,200
Repairs & Maintenance $544 $13,600 $544 $13,600
Water / Sewer $235 $5,884 $235 $5,884
Garbage $101 $2,519 $101 $2,519
Administration $4 $100 $4 $100
Utilities $110 $2,748 $110 $2,748
Professional services $105 $2,629 $105 $2,629
Total Operating Expense $1,927 $48,166 $1,923 $48,086
% of EGI 41.47 % 38.44 %
Per Unit Per Unit
REVENUE ALLOCATION
DISTRIBUTION OF EXPENSES
West Milton Rd MHP Multiyear Cash Flow Assumptions | 13
GLOBALSale Price $899,000
INCOMEGross Potential Rent 3.00 %
PROPOSED FINANCINGLoan Type Interest OnlyDown Payment $269,700Loan Amount $629,300Interest Rate 5.00 %Annual Debt Service $31,465Loan to Value 70 %
West Milton Rd MHP Cash Flow Analysis | 14
CASH FLOWCalendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Gross Potential RevenueGross Rental Income $132,000 $135,960 $140,039 $144,240 $148,567 $153,024 $157,615 $162,343 $167,214 $172,230Gross Potential Income $132,000 $135,960 $140,039 $144,240 $148,567 $153,024 $157,615 $162,343 $167,214 $172,230General Vacancy $15,840 $10,877 $0 $0 $0 $0 $0 $0 $0 $0Effective Gross Income $116,160 $125,083 $140,039 $144,240 $148,567 $153,024 $157,615 $162,343 $167,214 $172,230Operating ExpensesReal Estate Taxes $14,306 $14,306 $14,306 $14,306 $14,306 $14,306 $14,306 $14,306 $14,306 $14,306Insurance $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100Management Fee $5,280 $5,200 $5,200 $5,200 $5,200 $5,200 $5,200 $5,200 $5,200 $5,200Repairs & Maintenance $13,600 $13,600 $13,600 $13,600 $13,600 $13,600 $13,600 $13,600 $13,600 $13,600Water / Sewer $5,884 $5,884 $5,884 $5,884 $5,884 $5,884 $5,884 $5,884 $5,884 $5,884Garbage $2,519 $2,519 $2,519 $2,519 $2,519 $2,519 $2,519 $2,519 $2,519 $2,519Administration $100 $100 $100 $100 $100 $100 $100 $100 $100 $100Utilities $2,748 $2,748 $2,748 $2,748 $2,748 $2,748 $2,748 $2,748 $2,748 $2,748Professional services $2,629 $2,629 $2,629 $2,629 $2,629 $2,629 $2,629 $2,629 $2,629 $2,629Total Operating Expense $48,166 $48,086 $48,086 $48,086 $48,086 $48,086 $48,086 $48,086 $48,086 $48,086Net Operating Income $67,994 $76,997 $91,953 $96,154 $100,481 $104,938 $109,529 $114,257 $119,128 $124,144Annual Debt Service $31,465 $31,465 $31,465 $31,465 $31,465 $31,465 $31,465 $31,465 $31,465 $31,465Cash Flow $36,529 $45,532 $60,488 $64,689 $69,016 $73,473 $78,064 $82,792 $87,663 $92,679
Effective Gross Income vs Operating Expenses Cash Flow
West Milton Rd MHP Cash Flow Analysis | 15
Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Financial MetricsCash on Cash Return b/t 13.54 % 16.88 % 22.43 % 23.99 % 25.59 % 27.24 % 28.94 % 30.70 % 32.50 % 34.36 %CAP Rate 7.56 % 8.56 % 10.23 % 10.70 % 11.18 % 11.67 % 12.18 % 12.71 % 13.25 % 13.81 %Debt Coverage Ratio 2.16 2.45 2.92 3.06 3.19 3.34 3.48 3.63 3.79 3.95Operating Expense Ratio 41.46 % 38.44 % 34.33 % 33.33 % 32.36 % 31.42 % 30.50 % 29.61 % 28.75 % 27.91 %Gross Multiplier (GRM) 6.81 6.61 6.42 6.23 6.05 5.87 5.70 5.54 5.38 5.22Loan to Value 69.97 % 69.96 % 70.01 % 70.03 % 70.02 % 69.98 % 69.98 % 70.00 % 69.99 % 70.00 %Breakeven Ratio 68.55 % 63.60 % 56.81 % 55.15 % 53.55 % 51.99 % 50.47 % 49.00 % 47.57 % 46.19 %Price / Unit $35,960 $35,960 $35,960 $35,960 $35,960 $35,960 $35,960 $35,960 $35,960 $35,960
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Demographics
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Demographic Details
Demographic Charts
