Benny Spensieri 813-391-1545 [email protected]Zephyrhills, Fl 33541 Well & Septic Presented by CRES Corp International, LLC 1228 E 7th Ave Bank Financing May Be Available to Qualified Purchaser Underperforming MHP Being Sold Only $14,000/sp Tampa, Fl 33605 57-Sp (Additional 1-acre lot permits 8 spaces also available) - 4.94-acres Peaceful Ln MHP-Discount Sale! 4029 Peaceful LN
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
This Financial Projection Report is Based on a Purchase Price of$800,000). The MHP is currently 40% occupied. . Rentscollected average $235/space, that is welll below market,providing tremendous upside. Indicated expenses are actual andcurrent.
Financing is available to a Qualified Purchaser. Possiblefinancing option included in this Report:
50% LTV - 5.5% Interest Rate, 25-yr amortized, 5-yr Term
Peaceful Ln MHP consist of 57 individual lots and 15 MH/RVpark owned units with 4.94-acres combine.Seller also hasavailable an adjacent 1-acre lot zoned for 8 additiona spacesthat need to be built-out.
The Park is operating under par due to the Owner not havingsufficient time to manage the park. The occupancy should be aminimum 90% with base lot rents a minimum $325, or $800/MHunit, as verified by surrounding park in the immediate area.
This Report incorporates a steady increase in occupancy of upto 95% and a steady increase in lot rents up to $325/spacewithin three years of new ownership.
Report includes an additional capital improvement expense of$100K during Year 1 of operation.
This Report does not include the expected expense of gettingthe 8 additional spaces operational and getting the parkcompletely rent ready. Anticipated expenses are $ 60K spreadover the course of 3 years as indicated in this report.
Peaceful Ln MHP is located amongst very well established andupscale MHP's in a very beautiful area of Zephyrhills.
Peaceful Ln MHP-Discount Sale!
Peaceful Ln MHP-Discount Sale!
4029 Peaceful LN
Zephyrhills, Fl 33541
Potential Rental Income 112,000$ 190,000$ 259,200$ 266,976$ 269,646$
Net Operating Income (NOI) is a property’s gross rental income reduced by all expenses except for loan payments,income taxes, mortgage insurance premium (MIP) payments and sometimes funded reserves.
Debt Coverage Ratio (DCR) is a property’s net operating income divided by the amount of debt payments. Lendersuse this calculation to determine the remaining operating cash flow after the debt payments.
Loan-to-Value Ratio (LTV) is the outstanding debt divided by the value of the property. This ratio is used to determinethe amount of leverage and property equity. The debt balance can be the beginning or end-of-year balance. Theproperty value used can be the contract price or the fair market value at the end of the year.
Capitalization Rate (Cap Rate) is the net operating income (NOI) divided by either the property’s contract purchaseprice or its fair market value.
Cash-on-Cash Return is the net cash flow divided it by the initial investment (down payment). The calculation doesnot take into account the time value of money or change in the property’s equity.
Cash-on-Cash Return with Equity Build-up modifies the cash-on-cash return calculation by adding the property’snet change in equity for that year to the numerator and adding all previously generated equity to the denominator of thecash-on-cash return ratio. The calculation calculates the return on the property equity, i.e. the return on the cash thatis “tied up” in the property.
Net Present Value (NPV) converts future dollars into present-day dollars by discounting (reducing) the future cashflow of a property by a given rate or percentage. The initial investment (down payment) is subtracted from thediscounted dollars to derive the NPV. A positive NPV means that the property will generate a higher return than thegiven rate or percentage used to calculate the NPV amount.
Gross Rent Multiplier (GRM) is a property’s fair market value divided by its gross rental income.
Mortgage Insurance Premium (MIP) Payments are insurance premiums charged by a lender to protect that lenderagainst loss from a mortgager's default. The rates are charged on the balance of the loan and may be paid annually,monthly, or in some combination of the two (split premiums).
Internal Rate-of-Return (IRR) is the most widely used method of valuing a property’s annual cash flow stream. Sincea property’s cash flow is earned in the future, those future dollars must be converted to present-day dollars. The IRRcalculation discounts (reduces) the property’s future cash flow at a rate (i.e. percentage) so that the sum of all cashflow for a specified time period is equal to the initial investment. The rate or percentage needed to do that is the IRR.In other words, IRR is the discount rate at which Net Present Value (NPV) is zero.
Modified Internal Rate-of-Return (MIRR) modifies the IRR to avoid the drawbacks of the traditional IRR. The IRRimplicitly assumes that all cash flow is either reinvested or discounted at the computed IRR rate. In reality, a property’scash flow probably will not be reinvested at the computed IRR rate, but rather earn zero or a small amount of interest.The MIRR eliminates the reinvestment assumption by utilizing user stipulated reinvestment and borrowing rates.