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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