Multi-family Investment - 6 · 5-YEAR CASH FLOW ANALYSIS. Fiscal Year Beginning April 2019. DISCLAIMER: Year 5 sales price based on estimated NOI in year 6. All information is based

Contact:Randy ErwinPhone : 602-418-1116Email : [email protected]

Multi-familyInvestment - 6Units5020 N 21st AvePhoenix, AZ 85015

©Copyright 2011-2019 CRE Tech, Inc. All Rights Reserved.

TABLE OF CONTENTSTABLE OF CONTENTS

Page 1

PROPERTY INFO & DISCLAIMER

PROPERTY DESCRIPTION

PROPERTY PHOTOS

INVESTMENT ANALYSIS - 5 YEAR BEFORE TAX

AERIAL & LOCATION REPORT

2

3

4

5

14


MULTI-FAMILYINVESTMENT - 6UNITS

PROPERTYINFO:

PURCHASE PRICE:$349,000

PROPERTY ADDRESS:5020 N 21ST AVEPHOENIX, AZ 85015

YEAR BUILT:

PROPERTY SIZE3,290 SQ. FT.

LAND SIZE0.56 ACRES

Page 2COMPANY DISCLAIMER©Copyright 2011-2019 CRE Tech, Inc. All Rights Reserved.

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($58,166 / Unit)

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PROPERTY DESCRIPTIONPROPERTY DESCRIPTIONSolid multi-family value-add investment opportunity with 6 units in 2 building onover a half acre parcel. 100% occupancy with stable tenants. Under market rentalrates. Month to month tenants allows new owner to sign new leases at market rates.

Three units in the West building are on separate electric meters.Three units in the East building share one meter and the owner pays electric.Owner pays water, sewer and trash.

Convenient to shopping, Grand Canyon University and public transportation.

Multi-family Investment - 6 UnitsPhoenix AZ 85015

Page 3©Copyright 2011-2019 CRE Tech, Inc. All Rights Reserved.

PROPERTY PHOTOSPROPERTY PHOTOS

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Loan AmountLoan Amount $261,750

Interest RateInterest Rate 5.500%

Amortization PeriodAmortization Period 25 Years

Periodic PaymentPeriodic Payment $1,607

Annual Debt ServiceAnnual Debt Service $19,288

MORTGAGE DATAMORTGAGE DATA 1ST LIEN1ST LIEN

For the Year EndingFor the Year EndingYear 1Year 1

Mar-2020Mar-2020

Year 2Year 2

Mar-2021Mar-2021

Year 3Year 3

Mar-2022Mar-2022

Year 4Year 4

Mar-2023Mar-2023

Year 5Year 5

Mar-2024Mar-2024

POTENTIAL RENTAL INCOME (PRI)POTENTIAL RENTAL INCOME (PRI)

Base Rental IncomeBase Rental Income $39,897 $41,043 $42,274 $43,542 $44,849

- Turnover Vacancy- Turnover Vacancy $1,700 $0 $0 $0 $0

- Rent Concessions- Rent Concessions $0 $0 $0 $0 $0

Total Base Rental IncomeTotal Base Rental Income $38,198 $41,043 $42,274 $43,542 $44,849

-General Vacancy / Credit Loss-General Vacancy / Credit Loss $6,112 $6,567 $6,764 $6,967 $7,176

EFFECTIVE RENTAL INCOMEEFFECTIVE RENTAL INCOME $33,785 $33,785 $34,476 $34,476 $35,510 $35,510 $36,575 $36,575 $37,673 $37,673

+ Tenant Expense Reimbursements+ Tenant Expense Reimbursements $0 $0 $0 $0 $0

+Other Income+Other Income $0 $0 $0 $0 $0

GROSS OPERATING INCOME (GOI)GROSS OPERATING INCOME (GOI) $33,785 $33,785 $34,476 $34,476 $35,510 $35,510 $36,575 $36,575 $37,673 $37,673

-Operating Expenses-Operating Expenses $12,701 $12,701 $12,701 $12,701 $12,701

NET OPERATING INCOME (NOI)NET OPERATING INCOME (NOI) $21,084 $21,084 $21,775 $21,775 $22,809 $22,809 $23,874 $23,874 $24,972 $24,972

NET OPERATING INCOME (NOI)NET OPERATING INCOME (NOI) $21,084 $21,775 $22,809 $23,874 $24,972

-Annual Debt Service 1st Lien-Annual Debt Service 1st Lien $19,288 $19,288 $19,288 $19,288 $19,288

CASH FLOW BEFORE TAXESCASH FLOW BEFORE TAXES $1,796 $1,796 $2,487 $2,487 $3,521 $3,521 $4,586 $4,586 $5,684 $5,684

Projected Sales Price (EOY 5)Projected Sales Price (EOY 5) $0 $0

Cost of SaleCost of Sale $0

Mortgage Balance 1st LienMortgage Balance 1st Lien $233,668

Sales Proceeds Before TaxSales Proceeds Before Tax ($233,668) ($233,668)

SALES PROCEEDSSALES PROCEEDS

Purchase PricePurchase Price $349,000

+Acquisition Costs+Acquisition Costs $6,980

-Mortgage(s)-Mortgage(s) $261,750

+Loan Fees & Points+Loan Fees & Points $2,618

Initial InvestmentInitial Investment $96,848

INITIAL INVESTMENTINITIAL INVESTMENT

Loan BalanceLoan Balance $256,733 $251,432 $245,833 $239,917 $233,668

Loan-to-Value (LTV) - 1st LienLoan-to-Value (LTV) - 1st Lien 0% 0% 0% 0% 0%

Debt Service Coverage RatioDebt Service Coverage Ratio 1.09 1.13 1.18 1.24 1.29

Before Tax Cash on CashBefore Tax Cash on Cash 1.85% 2.57% 3.64% 4.73% 5.87%

Internal Rate of Return (IRR)Internal Rate of Return (IRR) N/A

Acquisition CAP RateAcquisition CAP Rate 6.04%

Year 1 Cash-on-CashYear 1 Cash-on-Cash 1.85%

Gross Rent MultiplierGross Rent Multiplier 8.75

Loan to ValueLoan to Value 71.23%

Debt Service Coverage RatioDebt Service Coverage Ratio 1.09

INVESTMENT PERFORMANCEINVESTMENT PERFORMANCE

CASH FLOWCASH FLOW

MULTI-FAMILY INVESTMENT - 6 UNITS5020 N 21st Ave, Phoenix, AZ, 850155-YEAR CASH FLOW ANALYSIS

Fiscal Year Beginning April 2019

DISCLAIMER: Year 5 sales price based on estimated NOI in year 6. All information is based on estimated forecast and are intended for thepurpose of example projections and analysis. The information presented herein is provided as is, without warranty of any kind. Century21

Commercial nor CRE Tech, Inc. assume any liability for errors or omissions. This information is not intended to replace or serve as substitutefor any legal, investment, real estate or other professional advice, consultation or service.

© Copyright 2011- 2019 CRE Tech, Inc. All Rights Reserved.

Randy ErwinCentury21 CommercialPhone: 602-418-1116Email: [email protected] W Glendale Ave, Glendale AZ 85305

Suite/UnitSuite/Unit TenantTenantRentableRentable

Area(Sq. Ft.)Area(Sq. Ft.)

LeaseLease

Start DateStart Date

LeaseLease

End DateEnd Date

Initial LeaseInitial Lease

TermTerm

(Months)(Months)

CurrentCurrent

MonthlyMonthly

Rate PerRate Per

Sq. Ft.Sq. Ft.

CurrentCurrent

AnnualAnnual

Rate PerRate Per

Sq. Ft.Sq. Ft.

Current YearCurrent Year

AnnualAnnual

Base RentBase Rent

1 2 Bed / 1 Bath 640 Jan-19 Dec-19 12 $0.90 $10.78 $6,952

2 1 Bed / 1 Bath 450 Jan-19 Dec-19 12 $1.11 $13.33 $6,045

3 2 Bed / 2 Bath 650 Jan-19 Dec-19 12 $0.88 $10.62 $6,952

4 1 Bed / 1 Bath 450 Jan-19 Dec-19 12 $1.22 $14.67 $6,650

5 1 Bed / 1 Bath 600 Jan-19 Dec-19 12 $0.92 $11.00 $6,650

6 1 Bed / 1 Bath 500 Jan-19 Dec-19 12 $1.10 $13.20 $6,649

Total Amount 3,290 $39,897

MULTI-FAMILY INVESTMENT - 6 UNITS5020 N 21st Ave, Phoenix, AZ, 85015TENANT RENT ROLL






Tenant Occupancy

MULTI-FAMILY INVESTMENT - 6 UNITS5020 N 21st Ave, Phoenix, AZ, 85015TENANT RENT ROLL






For the Year Ending For the Year EndingYear 1Year 1

Mar-2020Mar-2020

Year 2Year 2

Mar-2021Mar-2021

Year 3Year 3

Mar-2022Mar-2022

Year 4Year 4

Mar-2023Mar-2023

Year 5Year 5

Mar-2024Mar-2024

1 1 2 Bed / 1 Bath

Base Rent $6,952 $7,151 $7,366 $7,587 $7,815

- Turnover Vacancy $296 $0 $0 $0 $0

- Rent Concessions $0 $0 $0 $0 $0

+ Tenant Exp Reimb. $0 $0 $0 $0 $0

Net Tenant Income $6,656 $7,151 $7,366 $7,587 $7,815


Mar-2020Mar-2020

Year 2Year 2

Mar-2021Mar-2021

Year 3Year 3

Mar-2022Mar-2022

Year 4Year 4

Mar-2023Mar-2023

Year 5Year 5

Mar-2024Mar-2024

2 2 1 Bed / 1 Bath

Base Rent $6,045 $6,219 $6,405 $6,597 $6,795






Mar-2020Mar-2020

Year 2Year 2

Mar-2021Mar-2021

Year 3Year 3

Mar-2022Mar-2022

Year 4Year 4

Mar-2023Mar-2023

Year 5Year 5

Mar-2024Mar-2024

3 3 2 Bed / 2 Bath

Base Rent $6,952 $7,151 $7,366 $7,587 $7,815






Mar-2020Mar-2020

Year 2Year 2

Mar-2021Mar-2021

Year 3Year 3

Mar-2022Mar-2022

Year 4Year 4

Mar-2023Mar-2023

Year 5Year 5

Mar-2024Mar-2024

4 4 1 Bed / 1 Bath

Base Rent $6,650 $6,840 $7,046 $7,257 $7,475






Mar-2020Mar-2020

Year 2Year 2

Mar-2021Mar-2021

Year 3Year 3

Mar-2022Mar-2022

Year 4Year 4

Mar-2023Mar-2023

Year 5Year 5

Mar-2024Mar-2024

5 5 1 Bed / 1 Bath

Base Rent $6,650 $6,840 $7,046 $7,257 $7,475





MULTI-FAMILY INVESTMENT - 6 UNITS5020 N 21st Ave, Phoenix, AZ, 85015ANNUAL TENANT INCOME DETAIL







Mar-2020Mar-2020

Year 2Year 2

Mar-2021Mar-2021

Year 3Year 3

Mar-2022Mar-2022

Year 4Year 4

Mar-2023Mar-2023

Year 5Year 5

Mar-2024Mar-2024

6 6 1 Bed / 1 Bath

Base Rent $6,649 $6,840 $7,046 $7,257 $7,475





TOTAL TOTAL Base Rent $39,897 $41,043 $42,274 $43,542 $44,849

- Turnover Vacancy $1,700 $0 $0 $0 $0



Total Tenant IncomeTotal Tenant Income $38,198 $41,043 $42,274 $43,542 $44,849

MULTI-FAMILY INVESTMENT - 6 UNITS5020 N 21st Ave, Phoenix, AZ, 85015ANNUAL TENANT INCOME DETAIL






Real Estate TaxesReal Estate Taxes $1,701 $1,701 $1,701 $1,701 $1,701

Repairs And MaintenanceRepairs And Maintenance $500 $500 $500 $500 $500

Electric For Units 4,5,6 (average)Electric For Units 4,5,6 (average) $4,800 $4,800 $4,800 $4,800 $4,800

Utilities : Water & SewerUtilities : Water & Sewer $5,100 $5,100 $5,100 $5,100 $5,100

Utilities : Natural GasUtilities : Natural Gas $600 $600 $600 $600 $600

TOTAL OPERATING EXPENSESTOTAL OPERATING EXPENSES $12,701 $12,701 $12,701 $12,701 $12,701 $12,701 $12,701 $12,701 $12,701 $12,701

NET OPERATING INCOME (NOI)NET OPERATING INCOME (NOI) $21,084 $21,084 $21,775 $21,775 $22,809 $22,809 $23,874 $23,874 $24,972 $24,972

For the Year EndingFor the Year EndingYear 1Year 1

Mar-2020Mar-2020

Year 2Year 2

Mar-2021Mar-2021

Year 3Year 3

Mar-2022Mar-2022

Year 4Year 4

Mar-2023Mar-2023

Year 5Year 5

Mar-2024Mar-2024

POTENTIAL RENTAL INCOME (PRI)POTENTIAL RENTAL INCOME (PRI)

Base Rental IncomeBase Rental Income $39,897 $41,043 $42,274 $43,542 $44,849

- Turnover Vacancy- Turnover Vacancy $1,700 $0 $0 $0 $0

- Rent Concessions- Rent Concessions $0 $0 $0 $0 $0

Total Base Rental IncomeTotal Base Rental Income $38,198 $41,043 $42,274 $43,542 $44,849

- General - General Vacancy / Credit LossVacancy / Credit Loss $6,112 $6,567 $6,764 $6,967 $7,176

EFFECTIVE RENTAL INCOME (ERI)EFFECTIVE RENTAL INCOME (ERI) $33,785 $33,785 $34,476 $34,476 $35,510 $35,510 $36,575 $36,575 $37,673 $37,673

+ Tenant Expense Reimbursements+ Tenant Expense Reimbursements $0 $0 $0 $0 $0

+ + Other IncomeOther Income $0 $0 $0 $0 $0

GROSS OPERATING INCOME (GOI)GROSS OPERATING INCOME (GOI) $33,785 $33,785 $34,476 $34,476 $35,510 $35,510 $36,575 $36,575 $37,673 $37,673

INCOMEINCOME

EXPENSE DETAILEXPENSE DETAIL

MULTI-FAMILY INVESTMENT - 6 UNITS5020 N 21st Ave, Phoenix, AZ, 85015EXPENSE DETAIL ANALYSIS






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* Electric for units 4,5,6 paid for by landlord * Landlord pays for water& Sewer * Landlord pays for gas * Units 1,2,3 are separate electric meters and paid for by tenant.

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(Actual)

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* Self managed.

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Purchase PricePurchase Price $349,000

Year 1 Potential IncomeYear 1 Potential Income $39,897

Vacancy & Credit LossVacancy & Credit Loss 16.00%

Year 1 ExpensesYear 1 Expenses $12,701

Acquisition CAP RateAcquisition CAP Rate 6.04%

Sale Price - CAP RateSale Price - CAP Rate 349,000.00%

Acquisition CostsAcquisition Costs 2.00%

Annual Income IncreaseAnnual Income Increase 0.00%

Other Income IncreaseOther Income Increase 3.00%

Annual Expense IncreaseAnnual Expense Increase N/A

Loan Fees & PointsLoan Fees & Points 1.00%

Cost of Sale upon DispositionCost of Sale upon Disposition 5.00%

ASSUMPTION / INPUTSASSUMPTION / INPUTS

5-YEAR EQUITY YIELD & EFFECTIVE LOAN RATE5-YEAR EQUITY YIELD & EFFECTIVE LOAN RATE

Unleveraged InvestmentUnleveraged Investment

Cash Flow & 5-year YieldCash Flow & 5-year Yield

N $

0 ($355,980)

1 $21,084

2 $21,775

3 $22,809

4 $23,874

5 $24,972

+

Financing Cash FlowFinancing Cash Flow

& Effective Rate& Effective Rate

N $

0 $259,132

1 ($19,288)

2 ($19,288)

3 ($19,288)

4 ($19,288)

5 ($252,957)

=

Equity InvestmentEquity Investment

Cash Flow & 5-year YieldCash Flow & 5-year Yield

N $

0 ($96,848)

1 $1,796

2 $2,487

3 $3,521

4 $4,586

5 ($227,985)

Property IRR/Yield Property IRR/Yield = N/A= N/A Effective Loan Rate = 5.69%Effective Loan Rate = 5.69% Equity IRR/Yield = N/AEquity IRR/Yield = N/A

Neutral Leverage - The Equity Yield Remained the SAME with LeverageNeutral Leverage - The Equity Yield Remained the SAME with Leverage

MULTI-FAMILY INVESTMENT - 6 UNITS5020 N 21st Ave, Phoenix, AZ, 850155-YEAR CASH FLOW ANALYSIS






Multi-family Investment - 6 Units5020 N 21st Ave, Phoenix, AZ, 85015

MULTI-FAMILY INVESTMENT - 6 UNITS5020 N 21st Ave, Phoenix, AZ, 85015AERIAL ANNOTATION MAP



602-418-1116

[email protected]

9040 W Glendale Ave, Glendale, AZ, 85305

CENTURY21 COMMERCIALRANDY ERWIN


Documents

Multi-family Investment - 6 · 5-YEAR CASH FLOW ANALYSIS. Fiscal Year Beginning April 2019. DISCLAIMER: Year 5 sales price based on estimated NOI in year 6. All information is based