2nd Ave UW 2.6.25.xlsm

	C	D	E	F	G	H	I	L	M	N	O	P	Q	R	S	AB
1	Underwritten by: Tyler Wood For more underwriting tips and strategies, connect with Tyler Wood on Linkedin
2
3	Project Information							Pro Forma
4	Project Name		2nd Avenue Apartments						Year	TTM	1	2	3	4	5
5	Location		132 E 2nd Ave, Salt Lake City, UT 84103						Units Needing Upgrades		1	0	0	0	0
6	Total Units						11		Units Upgraded		1	0	0	0	0
7	Average In Place Rent						$1,468		Cumlative Units Renovated		1	1	1	1	1
8	Average SQFT						750		Units Remaining for Upgrade		0	0	0	0	0
9	Disposition Year					End of	Year 5
10	Exit Cap Rate						6.25%		Organic Income Growth		3.00%	3.00%	3.00%	3.00%	3.00%
11
12	Value Add								Average Base Rent		$1,512	$1,558	$1,604	$1,652	$1,702
13	Average Rent Increase						$125		Average Premium		$129	$133	$137	$141	$145
14	Units To Be Renovated						1		Average Rent $/SF		$2.19	$2.25	$2.32	$2.39	$2.46
15	Renovation Timeline						1 Year(s)
16	Total CapEx						$0		Total Gross Potential Rent	$193,800	$199,614	$205,602	$211,770	$218,123	$224,667
17	Interior Upgrades		$0,000/unit				$0		Rent Premium		$1,545	$1,591	$1,639	$1,688	$1,739
18	Exterior Upgrades		$0,000/unit				$0
19	0% Contingency						$0		Economic Loss %	0.00%	5.00%	5.00%	5.00%	5.00%	5.00%
20									Total Economic Loss	$0	($10,058)	($10,360)	($10,670)	($10,991)	($11,320)
21	Income & Expense Assumptions
22	Income			Expenses					Net Rental Income	$193,800	$191,101	$196,834	$202,739	$208,821	$215,086	#N/A
23		TTM	Y1			TTM	Y1		YoY % Increase		-1%	3%	3%	3%	3%
24	Late Fees	$353/unit	$353/unit		R&M	$802/unit	$600/unit		Late Fees	$3,885	$3,883	$3,999	$4,119	$4,243	$4,370
25	Other Income 2	$0/unit	$0/unit		Contracts	$39/unit	$39/unit		Other Income 2	$0	$0	$0	$0	$0	$0
26	Total Utilities	$0/unit	$0/unit		Turnover	$224/unit	$224/unit		Total Utilities	$0	$0	$0	$0	$0	$0
27					Landscaping	$332/unit	$332/unit		Total Other Income	$3,885	$3,883	$3,999	$4,119	$4,243	$4,370
28					Payroll	$0/unit	$0/unit
29					Advertising	$105/unit	$105/unit		Effective Gross Income	$197,685	$194,984	$200,833	$206,858	$213,064	$219,456
30					G&A	$376/unit	$376/unit		YoY % Increase		-1%	3%	3%	3%	3%
31					Total Utilities	$632/unit	$632/unit		Organic Expense Growth		2.50%	2.50%	2.50%	2.50%	2.50%
32					PM Fee	0.00%	0.00%		R&M	($8,825)	($6,765)	($6,934)	($7,107)	($7,285)	($7,467)
33					Insurance	$196/unit	$300/unit	-1	Contracts	($429)	($440)	($451)	($462)	($474)	($485)
34					Real Estate Taxes	$1,258/unit	$1,400/unit		Turnover	($2,462)	($2,526)	($2,589)	($2,653)	($2,720)	($2,788)
35									Landscaping	($3,651)	($3,743)	($3,837)	($3,933)	($4,031)	($4,132)
36	Sources and Uses of Cash								Payroll	$0	$0	$0	$0	$0	$0
37	Purchase Price				95%	$2,200,000			Advertising	($1,153)	($1,184)	($1,213)	($1,244)	($1,275)	($1,307)
38	3.0% Soft/Closing				3%	$66,000			G&A	($4,135)	($4,239)	($4,345)	($4,454)	($4,565)	($4,680)
39	2.0% Acquisition Fee				2%	$44,000			Total Utilities	($6,955)	($7,126)	($7,304)	($7,487)	($7,674)	($7,866)
40	Renovation Costs				0%	$0			PM Fee	$0	$0	$0	$0	$0	$0
41	Total Uses of Cash				100%	$2,310,000			Insurance	($2,152)	($3,383)	($3,467)	($3,554)	($3,643)	($3,734)
42									Real Estate Taxes	($13,842)	($15,785)	($16,180)	($16,584)	($16,999)	($17,424)
43									Total Op Expenses	($43,603)	($45,190)	($46,320)	($47,478)	($48,665)	($49,882)
44	[GP] Equity		10% Of Equity		3%	$78,540			OER	22%	23%	23%	23%	23%	23%
45	[LP] Equity		90% Of Equity		31%	$706,860
46	Senior Loan				66%	$1,524,600		$000/unit Replacement Reserves		$0	$0	$0	$0	$0	$0
47	Total Sources of Cash				100%	$2,310,000				$0	$0	$0	$0	$0	$0
48									Net Operating Income	$154,082	$149,794	$154,513	$159,380	$164,399	$169,574
49	Debt Assumptions								Free & Clear Return		6.48%	6.69%	6.90%	7.12%	7.34%
50	Acquisition Loan	70%	$1,540,000		Senior Loan Metrics					Year 0
51	Loan Fees	1.00%	($15,400)		DSCR (Amortizing)		1.37x		Total Acquisition Costs	$2,310,000
52	CapEx Financed	0%	$0		DSCR (Interest-Only)		1.64x
53	Loan Proceeds		$1,524,600		Debt Yield		10%		Reversion Value						$2,713,192
54					LTV		69%		1.0% Selling Costs						($27,132)
55	Annual Interest Rate		6.00%		LTC		66%		0.0% Disposition Fee						$0
56	Amortization		30 Years						Net From Reversion		$0	$0	$0	$0	$2,686,060
57	IO Period		0 Years
58	Monthly Amortizing Payment		$9,141						Net Unlevered Cash Flow	-$2,310,000	$149,794	$154,513	$159,380	$164,399	$2,855,634
59	Monthly IO Payment		$7,623						Unlevered IRR	9.56%
60									Unlevered Equity Multiple	1.51x
61									Average Cash on Cash Return	6.91%
62									Net Profit	$1,173,721
63
64									Total Acquisition Costs	$2,310,000
65									Loan Proceeds	($1,524,600)
66									Equity Required	$785,400
67
68									Cash Flow from Operations		$149,794	$154,513	$159,380	$164,399	$169,574
69									Debt Service		($109,689)	($109,689)	($109,689)	($109,689)	($109,689)
70									Cash Flow After Financing		$40,105	$44,824	$49,691	$54,710	$59,886
71									Cash on Cash Return		5.11%	5.71%	6.33%	6.97%	7.62%
72									Reversion Cash Flows
73									Net From Reversion		$0	$0	$0	$0	$2,686,060
74									Loan Payoff		$0	$0	$0	$0	($1,418,707)
75									Net Proceeds From Sale		$0	$0	$0	$0	$1,267,353
76											$1,505,878	$1,486,001	$1,464,898	$1,442,493	$1,418,707
77									Net Levered Cash Flow	($785,400)	$40,105	$44,824	$49,691	$54,710	$1,327,238
78									Levered IRR	15.23%
79									Levered Equity Multiple	1.93x
80									Average Cash on Cash Return	6.35%
81									Net Profit	$731,169
82
83
84
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101