The purpose of this report is to demonstrate the investment benefit of targeting short sales in a long-term stable market. For the purpose of this report, 5 short sale properties were selected from the Tallahassee MLS that if purchased with the following acquisition costs, would be ready to rent at the time of closing on the property.
| Size | Was | Is | Land | Structure | Future | Growth | Rent |
| 2,186 | $230,000 | $160,000 | $120,000 | $251,390 | $371,390 | 132% | $1,200 |
| 3,840 | $360,000 | $215,000 | $120,000 | $384,000 | $504,000 | 134% | $2,400 |
| 3,840 | $360,000 | $215,000 | $120,000 | $384,000 | $504,000 | 134% | $2,400 |
| 2,137 | $275,000 | $225,000 | $135,000 | $245,755 | $380,755 | 69% | $1,400 |
| 1,604 | $140,000 | $100,000 | $80,000 | $160,400 | $240,400 | 140% | $1,000 |
| 13,607 | $1,365,000 | $915,000 | $575,000 | $1,425,545 | $2,000,545 | 119% | $8,400 |
The future value was based upon estimates of replacement value, using conservative land values and current construction costs, though the sale date is 7 years after the date of acquisition. The following reports are available for review:
The Norway-Florida Fund Overview
| Buy | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | Sell | Total | |
| Before Tax Cash Flow Projection | |||||||||||
| Investment and Sale | (933,300) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,840,501 | 907,201 |
| Effective Income | 0 | 30,912 | 93,045 | 93,976 | 94,915 | 95,864 | 96,823 | 97,791 | 41,017 | 0 | 644,344 |
| Operating Expense | 0 | (15,765) | (47,453) | (47,928) | (48,407) | (48,891) | (49,380) | (49,874) | (20,919) | 0 | (328,616) |
| Cash Flow Before Debt | (933,300) | 15,147 | 45,592 | 46,048 | 46,509 | 46,974 | 47,443 | 47,918 | 20,098 | 1,840,501 | 1,222,930 |
| Debt Service | 457,500 | (18,681) | (32,025) | (32,025) | (32,025) | (32,025) | (32,025) | (32,025) | (13,344) | (457,500) | (224,175) |
| Cash Flow Before Tax | (475,800) | (3,534) | 13,567 | 14,023 | 14,484 | 14,949 | 15,418 | 15,893 | 6,755 | 1,383,001 | 998,755 |
| Taxable Income Projection | |||||||||||
| Taxable Revenue | 0 | 30,912 | 93,045 | 93,976 | 94,915 | 95,864 | 96,823 | 97,791 | 41,017 | 0 | 644,344 |
| Taxable Expense | 0 | (15,765) | (47,453) | (47,928) | (48,407) | (48,891) | (49,380) | (49,874) | (20,919) | 0 | (328,616) |
| Interest Expense | 0 | (18,681) | (32,025) | (32,025) | (32,025) | (32,025) | (32,025) | (32,025) | (13,344) | 0 | (224,175) |
| Depreciation | 0 | (15,319) | (28,282) | (28,282) | (28,282) | (28,282) | (28,282) | (28,282) | (10,606) | 0 | (195,616) |
| Ordinary Income | 0 | (18,854) | (14,715) | (14,259) | (13,798) | (13,333) | (12,863) | (12,389) | (3,851) | 0 | (104,062) |
| After Tax Cash Flow Projection | |||||||||||
| Cash Flow Before Tax | (475,800) | (3,534) | 13,567 | 14,023 | 14,484 | 14,949 | 15,418 | 15,893 | 6,755 | 1,383,001 | 998,755 |
| Ordinary Income | 0 | (18,854) | (14,715) | (14,259) | (13,798) | (13,333) | (12,863) | (12,389) | (3,851) | 0 | (104,062) |
| Capital Gains | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,102,817 | 1,102,817 |
| Taxable Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 998,755 | 998,755 |
| Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (169,375) | (169,375) |
| Cash Flow After Tax | (475,800) | (3,534) | 13,567 | 14,023 | 14,484 | 14,949 | 15,418 | 15,893 | 6,755 | 1,213,627 | 829,380 |
| Rate of Return Before Debt (IRR) | 14.1% |
| Rate of Return Before Tax (IRR) | 18.3% |
| Rate of Return After Tax (IRR) | 16.2% |
| Net Present Value Before Debt @12% | 112,855 |
| Net Present Value Before Tax @12% | 208,647 |
| Net Present Value After Tax @12% | 132,031 |
