2402 Poco Street Investment Analysis

Property Acquisition Report

2402 Poco Street

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This report shows the projected cash requirement for acquisition of the 2402 Poco Street on 1 January 2011.

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Cost of Property Acquired
Price of Property	$129,000
+ Closing Costs (2%)	2,580
Total Cost of Property Acquired			$131,580
Property Financing
Acquisition Loan Loan Principal	$103,200
- Points (1.5 Points)	1,548
Acquisition Loan Loan Proceeds		$101,652
Total Net Loan Proceeds			101,652
Cash Required at Acquisition			$29,928

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Real Estate Investment Analysis

2402 Poco Street

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	Buy	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	Sell	Total
Before Tax Cash Flow Projection
Investment and Sale	(131,580)	0	0	0	0	0	0	0	0	0	0	161,229	29,649
Effective Income	0	19,440	20,218	21,026	21,867	22,742	23,652	24,598	25,582	26,605	27,669	0	233,399
Operating Expense	0	(8,792)	(9,006)	(9,227)	(9,453)	(9,686)	(9,925)	(10,171)	(10,424)	(10,683)	(10,950)	0	(98,318)
Cash Flow Before Debt	(131,580)	10,649	11,211	11,800	12,414	13,056	13,726	14,427	15,158	15,922	16,719	161,229	164,730
Debt Service	101,652	(7,425)	(7,425)	(7,425)	(7,425)	(7,425)	(7,425)	(7,425)	(7,425)	(7,425)	(7,425)	(86,363)	(58,960)
Cash Flow Before Tax	(29,928)	3,224	3,787	4,375	4,989	5,631	6,301	7,002	7,733	8,497	9,294	74,866	105,770
Taxable Income Projection
Taxable Revenue	0	19,440	20,218	21,026	21,867	22,742	23,652	24,598	25,582	26,605	27,669	0	233,399
Taxable Expense	0	(8,792)	(9,006)	(9,227)	(9,453)	(9,686)	(9,925)	(10,171)	(10,424)	(10,683)	(10,950)	0	(98,318)
Interest Expense	0	(6,209)	(6,131)	(6,048)	(5,960)	(5,866)	(5,767)	(5,662)	(5,550)	(5,431)	(5,305)	(1,032)	(58,960)
Depreciation	0	(3,731)	(3,893)	(3,893)	(3,893)	(3,893)	(3,893)	(3,893)	(3,893)	(3,893)	(3,731)	0	(38,610)
Ordinary Income	0	708	1,187	1,858	2,561	3,296	4,066	4,872	5,715	6,597	7,683	(1,032)	37,511
After Tax Cash Flow Projection
Cash Flow Before Tax	(29,928)	3,224	3,787	4,375	4,989	5,631	6,301	7,002	7,733	8,497	9,294	74,866	105,770
Ordinary Income	0	708	1,187	1,858	2,561	3,296	4,066	4,872	5,715	6,597	7,683	(1,032)	37,511
Capital Gains	0	0	0	0	0	0	0	0	0	0	0	68,260	68,260
Taxable Income	0	708	1,187	1,858	2,561	3,296	4,066	4,872	5,715	6,597	7,683	67,228	105,770
Taxes	0	(220)	(368)	(576)	(794)	(1,022)	(1,260)	(1,510)	(1,772)	(2,045)	(2,382)	(15,262)	(27,211)
Cash Flow After Tax	(29,928)	3,004	3,419	3,799	4,195	4,609	5,041	5,492	5,961	6,452	6,912	59,604	78,560

Rate of Return Before Debt (IRR)	11.7%
Rate of Return Before Tax (IRR)	23.5%
Rate of Return After Tax (IRR)	19.6%
Net Present Value Before Debt @10%	14,326
Net Present Value Before Tax @10%	34,814
Net Present Value After Tax @10%	22,414

IRR Verification Report

2402 Poco Street

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These cash flows and dates are those on which the Rate of Return Before Tax in our analysis of the 2402 Poco Street are based.

Our Analysis plans operating cash flows monthly, and assumes that cash flows occuring during the month all occur at the middle of the month.Calculators and Spreadsheets typically schedule these cash flows at the end of the year (year-end convention).Since cash flows do actually occur unevenly during the year, the mid-month convention is more accurate.

The Internal Rate of Return (IRR) is defined as the Present Value Discount Rate which makes the Net Present Value of the Cash Flows involved equal to zero. The Net Present Value of $0.00 shown below demonstrates that the Net Present Value of these Cash Flows is very close to zero when discounted at 23.4932% and, in turn, the IRR of the Cash Flows is very close to 23.4932%.

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Date	Years	Cash Flow	Present Value Discount Factor	Present Value at 23.4932%
1 Jan 2011	0.00	($29,928.00)	1.0000000	($29,928.00)
15 Jan 2011	0.04	269.00	0.9919389	266.83
15 Feb 2011	0.12	269.00	0.9743199	262.09
15 Mar 2011	0.20	269.00	0.9586750	257.88
15 Apr 2011	0.28	269.00	0.9416468	253.30
15 May 2011	0.37	269.00	0.9254560	248.95
15 Jun 2011	0.45	269.00	0.9090178	244.53
15 Jul 2011	0.53	269.00	0.8933880	240.32
15 Aug 2011	0.62	269.00	0.8775194	236.05
15 Sep 2011	0.70	269.00	0.8619327	231.86
15 Oct 2011	0.79	269.00	0.8471125	227.87
15 Nov 2011	0.87	269.00	0.8320659	223.83
15 Dec 2011	0.95	269.00	0.8177592	219.98
15 Jan 2012	1.04	316.00	0.8032339	253.82
15 Feb 2012	1.12	316.00	0.7889667	249.31
15 Mar 2012	1.20	316.00	0.7758495	245.17
15 Apr 2012	1.29	316.00	0.7620687	240.81
15 May 2012	1.37	316.00	0.7489655	236.67
15 Jun 2012	1.45	316.00	0.7356622	232.47
15 Jul 2012	1.54	316.00	0.7230131	228.47
15 Aug 2012	1.62	316.00	0.7101707	224.41
15 Sep 2012	1.71	316.00	0.6975565	220.43
15 Oct 2012	1.79	316.00	0.6855626	216.64
15 Nov 2012	1.87	316.00	0.6733855	212.79
15 Dec 2012	1.96	316.00	0.6618072	209.13
15 Jan 2013	2.04	365.00	0.6500520	237.27
15 Feb 2013	2.13	365.00	0.6385056	233.05
15 Mar 2013	2.20	365.00	0.6282530	229.31
15 Apr 2013	2.29	365.00	0.6170938	225.24
15 May 2013	2.37	365.00	0.6064834	221.37
15 Jun 2013	2.45	365.00	0.5957109	217.43
15 Jul 2013	2.54	365.00	0.5854681	213.70
15 Aug 2013	2.62	365.00	0.5750689	209.90
15 Sep 2013	2.71	365.00	0.5648544	206.17
15 Oct 2013	2.79	365.00	0.5551422	202.63
15 Nov 2013	2.87	365.00	0.5452816	199.03
15 Dec 2013	2.96	365.00	0.5359060	195.61
15 Jan 2014	3.04	416.00	0.5263871	218.98
15 Feb 2014	3.13	416.00	0.5170373	215.09
15 Mar 2014	3.20	416.00	0.5087351	211.63
15 Apr 2014	3.29	416.00	0.4996988	207.87
15 May 2014	3.37	416.00	0.4911069	204.30
15 Jun 2014	3.45	416.00	0.4823838	200.67
15 Jul 2014	3.54	416.00	0.4740896	197.22
15 Aug 2014	3.62	416.00	0.4656687	193.72
15 Sep 2014	3.71	416.00	0.4573974	190.28
15 Oct 2014	3.79	416.00	0.4495328	187.01
15 Nov 2014	3.87	416.00	0.4415481	183.68
15 Dec 2014	3.96	416.00	0.4339560	180.53
15 Jan 2015	4.04	469.00	0.4262480	199.91
15 Feb 2015	4.13	469.00	0.4186769	196.36
15 Mar 2015	4.20	469.00	0.4119541	193.21
15 Apr 2015	4.29	469.00	0.4046369	189.77
15 May 2015	4.37	469.00	0.3976795	186.51
15 Jun 2015	4.45	469.00	0.3906158	183.20
15 Jul 2015	4.54	469.00	0.3838995	180.05
15 Aug 2015	4.62	469.00	0.3770806	176.85
15 Sep 2015	4.71	469.00	0.3703828	173.71
15 Oct 2015	4.79	469.00	0.3640143	170.72
15 Nov 2015	4.87	469.00	0.3575486	167.69
15 Dec 2015	4.96	469.00	0.3514009	164.81
15 Jan 2016	5.04	525.00	0.3451592	181.21
15 Feb 2016	5.13	525.00	0.3390284	177.99
15 Mar 2016	5.21	525.00	0.3333918	175.03
15 Apr 2016	5.29	525.00	0.3274700	171.92
15 May 2016	5.37	525.00	0.3218394	168.97
15 Jun 2016	5.46	525.00	0.3161228	165.96
15 Jul 2016	5.54	525.00	0.3106873	163.11
15 Aug 2016	5.62	525.00	0.3051688	160.21
15 Sep 2016	5.71	525.00	0.2997484	157.37
15 Oct 2016	5.79	525.00	0.2945944	154.66
15 Nov 2016	5.88	525.00	0.2893618	151.91
15 Dec 2016	5.96	525.00	0.2843864	149.30
15 Jan 2017	6.04	583.00	0.2793351	162.85
15 Feb 2017	6.13	583.00	0.2743735	159.96
15 Mar 2017	6.21	583.00	0.2699678	157.39
15 Apr 2017	6.29	583.00	0.2651726	154.60
15 May 2017	6.37	583.00	0.2606131	151.94
15 Jun 2017	6.46	583.00	0.2559841	149.24
15 Jul 2017	6.54	583.00	0.2515826	146.67
15 Aug 2017	6.62	583.00	0.2471140	144.07
15 Sep 2017	6.71	583.00	0.2427247	141.51
15 Oct 2017	6.79	583.00	0.2385512	139.08
15 Nov 2017	6.88	583.00	0.2343140	136.61
15 Dec 2017	6.96	583.00	0.2302852	134.26
15 Jan 2018	7.04	644.00	0.2261948	145.67
15 Feb 2018	7.13	644.00	0.2221771	143.08
15 Mar 2018	7.21	644.00	0.2186095	140.78
15 Apr 2018	7.29	644.00	0.2147265	138.28
15 May 2018	7.37	644.00	0.2110345	135.91
15 Jun 2018	7.46	644.00	0.2072861	133.49
15 Jul 2018	7.54	644.00	0.2037219	131.20
15 Aug 2018	7.62	644.00	0.2001034	128.87
15 Sep 2018	7.71	644.00	0.1965491	126.58
15 Oct 2018	7.79	644.00	0.1931696	124.40
15 Nov 2018	7.88	644.00	0.1897385	122.19
15 Dec 2018	7.96	644.00	0.1864761	120.09
15 Jan 2019	8.04	708.00	0.1831638	129.68
15 Feb 2019	8.13	708.00	0.1799104	127.38
15 Mar 2019	8.21	708.00	0.1770216	125.33
15 Apr 2019	8.29	708.00	0.1738773	123.11
15 May 2019	8.37	708.00	0.1708876	120.99
15 Jun 2019	8.46	708.00	0.1678523	118.84
15 Jul 2019	8.54	708.00	0.1649662	116.80
15 Aug 2019	8.62	708.00	0.1620360	114.72
15 Sep 2019	8.71	708.00	0.1591579	112.68
15 Oct 2019	8.79	708.00	0.1564213	110.75
15 Nov 2019	8.88	708.00	0.1536429	108.78
15 Dec 2019	8.96	708.00	0.1510011	106.91
15 Jan 2020	9.04	774.00	0.1483190	114.80
15 Feb 2020	9.13	774.00	0.1456845	112.76
15 Mar 2020	9.21	774.00	0.1432624	110.89
15 Apr 2020	9.29	774.00	0.1407178	108.92
15 May 2020	9.38	774.00	0.1382982	107.04
15 Jun 2020	9.46	774.00	0.1358417	105.14
15 Jul 2020	9.54	774.00	0.1335060	103.33
15 Aug 2020	9.63	774.00	0.1311347	101.50
15 Sep 2020	9.71	774.00	0.1288054	99.70
15 Oct 2020	9.79	774.00	0.1265907	97.98
15 Nov 2020	9.88	774.00	0.1243422	96.24
15 Dec 2020	9.96	774.00	0.1222042	94.59
31 Dec 2020	10.01	74,866.00	0.1210791	9,064.70
TOTALS		$105,766.00		$0.00

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