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My NP HW

additional tag np

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21 views5 pages

My NP HW

additional tag np

Uploaded by

yewjun14
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
Download as xlsx, pdf, or txt
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You are on page 1/ 5

No.

of units 9
Price/Unit $ 600,000.00
Total Price $ 5,400,000.00
Valuation/Unit $ 650,000.00
Total Valuation $ 5,850,000.00
Loan to Valuation 60%
Loan Amount $ 3,240,000.00
Interest 3.25%
No. of years 15
Payment basis 1
No. of period 15
Mortgage Constant 0.08528858
Annual payment $ 276,335.00

Debt Service` Interest Principal Reduction


Year $ $ $
(a) (b) (c)
0 - - -
1 $ 276,335.00 $ 105,300.00 $ 171,035.00
2 $ 276,335.00 $ 99,741.36 $ 176,593.64
3 $ 276,335.00 $ 94,002.07 $ 182,332.93
4 $ 276,335.00 $ 88,076.25 $ 188,258.75
5 $ 276,335.00 $ 81,957.84 $ 194,377.16

Year 1 Year 2 Year 3


% increase in rental per year 3% 3%
Rental income per year $ 30,000.00 $ 30,900.00 $ 31,827.00
No. of units 9 9 9
Potential Gross Income $ 270,000.00 $ 278,100.00 $ 286,443.00
Vacancy and Bad Debt Allowances % provisio 4% 7% 7%
Less $10,000 after 1st year -$ 10,000.00 -$ 10,000.00
Vacancy and Bad Debt Allowances $ 10,800.00 $ 9,467.00 $ 10,051.01
Effective Gross Income $ 259,200.00 $ 268,633.00 $ 276,391.99

Operating Expenses
Conservancy Charges (increase 3.5% each yr) $ 32,400.00 $ 33,534.00 $ 34,707.69
Insurance Premium $ 16,200.00 $ 16,200.00 $ 16,200.00
Miscellaneous (increase by 3% each yr) $ 16,200.00 $ 16,686.00 $ 17,186.58
Net Operating Expenses $ 64,800.00 $ 66,420.00 $ 68,094.27
Property Tax $ - $ - $ -
Annual Value $ 30,000.00 $ 30,900.00 $ 31,827.00
Propert Tax for 1 unit $ 3,000.00 $ 3,090.00 $ 3,182.70
Total Property Tax for 9 units $ 27,000.00 $ 27,810.00 $ 28,644.30
Total Operating Expenses $ 91,800.00 $ 94,230.00 $ 96,738.57
Net Operating Income $ 167,400.00 $ 174,403.00 $ 179,653.42
Year 1 Year 2 Year 3
Net Operating Income $ 167,400.00 $ 174,403.00 $ 179,653.42
Less Interest $ 105,300.00 $ 99,741.36 $ 94,002.07
Taxable income $ 62,100.00 $ 74,661.64 $ 85,651.35
Corp Tax 17% $ 10,557.00 $ 12,692.48 $ 14,560.73

Year 1 Year 2 Year 3


Net Operating Income $ 167,400.00 $ 174,403.00 $ 179,653.42
Less Debt Service $ 276,335.00 $ 276,335.00 $ 276,335.00
BTCF -$ 108,935.00 -$ 101,932.00 -$ 96,681.58
Less Corporate Tax $ 10,557.00 $ 12,692.48 $ 14,560.73
ATCF -$ 119,492.00 -$ 114,624.48 -$ 111,242.31

Net Sales Proceed


Exit Price $ 15,800,000.00
Selling Expense $ 237,000.00 1.50%
Legal Fees
Outstanding Loan $ 2,327,402.53 Year 5
Net Sales Proceed $ 13,235,597.47

Purchase Price $ 5,400,000.00


Stamp Duty $ 112,800.00
ABSD -
Legal Fees $ 25,380.00 0.47%
Total Acquistion Costs $ 5,538,180.00
Less Loan $ 3,240,000.00
Initial Equity -$ 2,298,180.00

Year Investment/Rental Discount Rate 11% Present Value


0 -$ 2,298,180.00 1 -$ 2,298,180.00
1 -$ 119,492.00 0.9009 -$ 107,650.34
2 -$ 114,624.48 0.81162 -$ 93,031.52
3 -$ 111,242.31 0.73119 -$ 81,339.26
4 -$ 107,766.13 0.65873 -$ 70,988.78
5 -$ 104,192.73 0.59345 -$ 61,833.18

5 $ 13,235,597.47 $ 7,854,665.32

NPV $ 5,222,981.50

IRR 31%

(b)
First Year Yield 25.75% NOI divide by market value x 100%

NOI of year 1 -debt service -$ 108,935.00


Equity Divident Rate -4.74%
Loan Outstanding
$
(d)
$ 3,240,000.00
$ 3,068,965.00
$ 2,892,371.37
$ 2,710,038.44
$ 2,521,779.69
$ 2,327,402.53

Year 4 Year 5
3% 3%
$ 32,781.81 $ 33,765.26
9 9
$ 295,036.29 $ 303,887.38
7% 7%
-$ 10,000.00 -$ 10,000.00
$ 10,652.54 $ 11,272.12
$ 284,383.75 $ 292,615.26

$ 35,922.46 $ 37,179.75
$ 16,200.00 $ 16,200.00
$ 17,702.18 $ 18,233.24
$ 69,824.64 $ 71,612.99
$ - $ -
$ 32,781.81 $ 33,765.26
$ 3,278.20 $ 3,376.50
$ 29,503.80 $ 30,388.50
$ 99,328.44 $ 102,001.49
$ 185,055.31 $ 190,613.77
Year 4 Year 5
$ 185,055.31 $ 190,613.77
$ 88,076.25 $ 81,957.84
$ 96,979.06 $ 108,655.93
$ 16,486.44 $ 18,471.51

Year 4 Year 5
$ 185,055.31 $ 190,613.77
$ 276,335.00 $ 276,335.00
-$ 91,279.69 -$ 85,721.22
$ 16,486.44 $ 18,471.51
-$ 107,766.13 -$ 104,192.73

e by market value x 100%

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