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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

  • Mortgage

($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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