Norway-Florida Fund Assumptions Page
Posted by Joe Manausa on Sunday, March 7, 2010 at 12:24:57 AM
By Joe Manausa / March 7, 2010
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This is the assumption set used to prepare the Norway-Florida Fund Analysis
Investment Assumptions | ||
Price of Property | $915,000 | |
Closing Costs | 2% of Property Price | |
Date of Acquisition | 1 June 2010 | |
Holding Period | 7 Years | |
Inflation Rate | 1% per Year | |
Sale Price Method | Sale Price = $2,000,545 | |
Selling Costs | 8% | |
Investor's Assumptions | ||
General Vacancy & Credit Loss | Zero | |
Tax Rate - First Year | 35% | |
Tax Rate - Following Years | 35% | |
Capital Gain Rate | 15% | |
Cost Recovery Recapture Rate | 25% - Losses Carried Forward | |
Present Value Discount Rate Before Debt | 12% per Year | |
Present Value Discount Rate Before Tax | 12% per Year | |
Present Value Discount Rate After Tax | 12% per Year | |
Depreciation Assumptions | ||
Depreciable Amount | 85% of Property Price | |
Depreciable Life | 27.5 Years | |
Depreciation Method | Straight Line | |
Depreciation Start Date | at Acquisition | |
Loan Assumptions | ||
Loan Amount | 50% of Property Price | |
Loan Interest Rate | 7% Annually | |
Original Loan Period | 30 Years | |
Loan Origination Date | at Acquisition | |
Loan Type | Monthly Payments, Interest Only | |
Revenue Assumptions | ||
Annual Revenue (1 Units @ $8,400.00/Unit/Month) | $100,800.00 | |
Revenue Start Date | 1 September 2010 | |
Revenue Period | Until Projected Sale | |
Revenue Growth Method | Annual at the Inflation Rate | |
Management Fee | 11% | |
Vacancy Factor | 8% | |
All Non-Management Expenses Expense as % of EI Assumptions | ||
Expense Percentage | 40% of Effective Income | |
Expense Start Date | at Acquisition | |
Expense Period | Until Projected Sale | |
Risk Analysis | Proforma Income Statement | Assumptions Page |
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