Question
Calculate a sensitivity analysis and financial feasibility given the following: Purchase information Initial market value $405,000 Purchase price $362,200 Mortgage ($271,650) Downpayment $90,550 Square feet
Calculate a sensitivity analysis and financial feasibility given the following:
Purchase information | |
Initial market value | $405,000 |
Purchase price | $362,200 |
| ($271,650) |
Downpayment | $90,550 |
Square feet | 3,372 |
Cost per square foot | $107 |
Monthly rent per square foot | $0.98 |
Mortgages | First |
Loan-to-cost Ratio | 75% |
Loan-to-value Ratio | 67.07% |
Loan Amount | $271,650 |
Loan Type | Amortizing |
Term | 30 years |
Interest Rate | 4.5% |
Payment | $1,376.41 |
Income inflation rate:2.5%
Expense inflation rate: 3.0%
marginal tax rate: 22%
Income | Year 1 | Year 2 | Year 3 | Year 5 | Year 10* | Year 20* | Year 30* |
Gross Rent | $19,800 | $20,295 | $20,802.5 | $21,855.5 | $49,455 | $63,307 | $81,038 |
Vacancy Loss | -$594 | -$609 | -$624 | -$655.5 | -$1,484 | -$1,899 | -$2,431 |
Amenity & Tech Fee | $3,000 | $3,075 | $3,152 | $3,311 | $3,747 | $4,796 | $6,139 |
Operating income | $22,206 | $22,761 | $23,330 | $25,166.5 | $51,718 | $66,203 | $84,746 |
*indicates years that both units will be available as rentals to tenants.
Expenses | Year 1 | Year 2 | Year 3 | Year 5 | Year 10* | Year 20* | Year 30* |
Cleaning & maintenance | -$228 | -$235 | -$242 | -$256.5 | -$595 | -$800 | -$1,075 |
insurance | -$252 | -$259.5 | -$267.5 | -$283.5 | -$658 | -$884 | -$1,188 |
Management fees | -$1035.5 | -$1,061 | -$1,087.5 | -$1,143 | -$2,586 | -$3,310 | -$4,237 |
Taxes | -$3,942 | -$4,060.5 | -$4,182 | -$4,437 | -$10,287 | -$13,825 | -$18,579 |
Association Fees | -$2,280 | -$2348.5 | -$2,419 | -$2,566 | -$5,950 | -$7,996 | -$10,746 |
Private M.U.D Fee | -$1,128 | -$1,162 | -$1196.5 | -$1,269.5 | -$2,944 | -$3,956 | -$5,316 |
Operating expenses | -$8,865.5 | -$9,126 | -$9,394.5 | -$9,955.5 | -$23,019 | -$30,770 | -$41,141 |
*indicates years that both units will be available as rentals to tenants.
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