Provo 18-unit Model 2.17.25.xlsm

	C	D	E	F	G	H	I	L	M	N	O	P	Q	R	S	AB
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2	Project Information							Pro Forma
3	Project Name		444 W 200 N & 242 N 500 W Apartments						Year	Broker Pro Forma	1	2	3	4	5
4	Location		Provo, UT						Units Needing Upgrades		18	0	0	0	0
5	Total Units						18		Units Upgraded		18	0	0	0	0
6	Average In Place Rent						$1,322		Cumlative Units Renovated		18	18	18	18	18
7	Average SQFT						805		Units Remaining for Upgrade		0	0	0	0	0
8	Disposition Year					End of	Year 5
9	Exit Cap Rate						6.22%		Organic Income Growth		2.50%	2.50%	2.50%	2.50%	2.50%
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11	Value Add								Average Base Rent		$1,355	$1,389	$1,424	$1,460	$1,496
12	Average Rent Increase						$100		Average Premium		$103	$105	$108	$110	$113
13	Units To Be Renovated						18		Average Rent $/SF		$1.81	$1.86	$1.90	$1.95	$2.00
14	Renovation Timeline						1 Year(s)
15	Total CapEx						$118,800		Total Gross Potential Rent	$309,000	$292,765	$300,084	$307,586	$315,275	$323,157
16	Interior Upgrades		$6,000/unit				$108,000		Rent Premium		$22,140	$22,694	$23,261	$23,842	$24,438
17	Exterior Upgrades		$0,000/unit				$0
18	10% Contingency						$10,800		Economic Loss %	6.90%	5.00%	5.00%	5.00%	5.00%	5.00%
19									Total Economic Loss	($21,321)	($15,745)	($16,139)	($16,542)	($16,956)	($17,380)
20	Income & Expense Assumptions
21	Income			Expenses					Net Rental Income	$287,679	$299,159	$306,638	$314,304	$322,162	$330,216	#N/A
22		Broker Pro Forma	Y1			Broker Pro Forma	Y1		YoY % Increase		4%	2%	3%	2%	3%
23	Other Income	$1,091/unit	$1,091/unit		R&M	$500/unit	$500/unit		Other Income	$19,636	$19,638	$20,129	$20,632	$21,148	$21,677
24	Utility Billback	$1,568/unit	$1,568/unit		Contracts	$310/unit	$310/unit		Utility Billback	$28,224	$28,224	$28,930	$29,653	$30,394	$31,154
25	[Item]	$0/unit	$0/unit		Turnover	$406/unit	$300/unit		[Item]	$0	$0	$0	$0	$0	$0
26					Landscaping	$229/unit	$229/unit		Total Other Income	$47,860	$47,862	$49,059	$50,285	$51,542	$52,831
27					Payroll	$1,000/unit	$1,000/unit
28					Advertising	$31/unit	$31/unit		Effective Gross Income	$335,539	$347,021	$355,697	$364,589	$373,704	$383,047
29					G&A	$231/unit	$231/unit		YoY % Increase		3%	2%	3%	2%	3%
30					Total Utilities	$847/unit	$847/unit		Organic Expense Growth		2.00%	2.00%	2.00%	2.00%	2.00%
31					PM Fee	4.93%	5.00%		R&M	($9,000)	($9,180)	($9,364)	($9,551)	($9,742)	($9,937)
32					Insurance	$256/unit	$300/unit		Contracts	($5,582)	($5,692)	($5,805)	($5,922)	($6,040)	($6,161)
33					Real Estate Taxes	$1,032/unit	$1,200/unit		Turnover	($7,301)	($5,508)	($5,618)	($5,731)	($5,845)	($5,962)
34									Landscaping	($4,124)	($4,204)	($4,289)	($4,374)	($4,462)	($4,551)
35	Sources and Uses of Cash								Payroll	($18,000)	($18,360)	($18,727)	($19,102)	($19,484)	($19,873)
36	Purchase Price				93%	$3,200,000			Advertising	($552)	($569)	($581)	($592)	($604)	($616)
37	3.0% Soft/Closing				3%	$96,000			G&A	($4,159)	($4,241)	($4,326)	($4,413)	($4,501)	($4,591)
38	1.0% Acquisition Fee				1%	$32,000			Total Utilities	($15,241)	($15,551)	($15,862)	($16,179)	($16,503)	($16,833)
39	Renovation Costs				3%	$118,800			PM Fee	($16,545)	($17,351)	($17,785)	($18,229)	($18,685)	($19,152)
40	Total Uses of Cash				100%	$3,446,800			Insurance	($4,607)	($5,508)	($5,618)	($5,731)	($5,845)	($5,962)
41									Real Estate Taxes	($18,571)	($22,032)	($22,473)	($22,922)	($23,381)	($23,848)
42									Total Op Expenses	($103,682)	($108,196)	($110,447)	($112,745)	($115,091)	($117,486)
43	[GP] Equity		10% Of Equity		4%	$122,920			OER	32.0%	32%	32%	32%	32%	32%
44	[LP] Equity		90% Of Equity		32%	$1,106,280
45	Senior Loan				64%	$2,217,600		$200/unit Replacement Reserves		($3,600)	($3,600)	($3,600)	($3,600)	($3,600)	($3,600)
46	Total Sources of Cash				100%	$3,446,800				$0	$0	$0	$0	$0	$0
47									Net Operating Income	$228,257	$235,225	$241,650	$248,244	$255,013	$261,960
48	Debt Assumptions								Free & Clear Return		6.82%	7.01%	7.20%	7.40%	7.60%
49	Acquisition Loan	70%	$2,240,000		Senior Loan Metrics					Year 0
50	Loan Fees	1.00%	($22,400)		DSCR (Amortizing)		1.40x		Total Acquisition Costs	$3,446,800
51	CapEx Financed	0%	$0		DSCR (Interest-Only)		1.63x
52	Loan Proceeds		$2,217,600		Debt Yield		11%		Reversion Value						$4,211,583
53					LTV		69%		1.0% Selling Costs						($42,116)
54	Annual Interest Rate		6.50%		LTC		64%		0.0% Disposition Fee						$0
55	Amortization		30 Years						Net From Reversion		$0	$0	$0	$0	$4,169,467
56	IO Period		0 Years
57	Monthly Amortizing Payment		$14,017						Net Unlevered Cash Flow	-$3,446,800	$235,225	$241,650	$248,244	$255,013	$4,431,428
58	Monthly IO Payment		$12,012						Unlevered IRR	10.56%
59									Unlevered Equity Multiple	1.57x
60									Average Cash on Cash Return	7.21%
61									Net Profit	$1,964,760
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63									Total Acquisition Costs	$3,446,800
64									Loan Proceeds	($2,217,600)
65									Equity Required	$1,229,200
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67									Cash Flow from Operations		$235,225	$241,650	$248,244	$255,013	$261,960
68									Debt Service		($168,201)	($168,201)	($168,201)	($168,201)	($168,201)
69									Cash Flow After Financing		$67,024	$73,449	$80,044	$86,812	$93,760
70									Cash on Cash Return		5.45%	5.98%	6.51%	7.06%	7.63%
71									Reversion Cash Flows
72									Net From Reversion		$0	$0	$0	$0	$4,169,467
73									Loan Payoff		$0	$0	$0	$0	($2,075,917)
74									Net Proceeds From Sale		$0	$0	$0	$0	$2,093,550
75											$2,192,813	$2,166,367	$2,138,149	$2,108,041	$2,075,917
76									Net Levered Cash Flow	($1,229,200)	$67,024	$73,449	$80,044	$86,812	$2,187,310
77									Levered IRR	16.49%
78									Levered Equity Multiple	2.03x
79									Average Cash on Cash Return	6.53%
80									Net Profit	$1,265,439
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