Norway-Florida Fund Proforma Income Statement
Posted by Joe Manausa on Sunday, March 7, 2010 at 12:06:19 AM
By Joe Manausa / March 7, 2010
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This Statement is for the Norway-Florida Fund as acquired on 1 June 2010 for a Price of $915,000, subject to a Loan of $457,500, for a Down Payment of $457,500. For the sake of conservative estimates, rents do not begin until 9/1/2010.
| 7 Months 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 5.00 Months 2017 | |
| Gross Income | ||||||||
| Revenue | $33,600 | $101,136 | $102,147 | $103,169 | $104,201 | $105,243 | $106,295 | $44,584 |
| Total Gross Income | $33,600 | $101,136 | $102,147 | $103,169 | $104,201 | $105,243 | $106,295 | $44,584 |
| Less: Vacancy & Credit Loss | 2,688 | 8,091 | 8,172 | 8,254 | 8,336 | 8,419 | 8,504 | 3,567 |
| Effective Income | $30,912 | $93,045 | $93,976 | $94,915 | $95,864 | $96,823 | $97,791 | $41,017 |
| Less: Operating Expenses | ||||||||
| All Non-Management Expenses | 12,365 | 37,218 | 37,590 | 37,966 | 38,346 | 38,729 | 39,117 | 16,407 |
| Management Fee | 3,400 | 10,235 | 10,337 | 10,441 | 10,545 | 10,651 | 10,757 | 4,512 |
| Total Operating Expenses | $15,765 | $47,453 | $47,928 | $48,407 | $48,891 | $49,380 | $49,874 | $20,919 |
| Net Operating Income | $15,147 | $45,592 | $46,048 | $46,509 | $46,974 | $47,443 | $47,918 | $20,098 |
| Less: Debt Service | ||||||||
| Loan | 18,681 | 32,025 | 32,025 | 32,025 | 32,025 | 32,025 | 32,025 | 13,344 |
| Total Debt Service | $18,681 | $32,025 | $32,025 | $32,025 | $32,025 | $32,025 | $32,025 | $13,344 |
| Net Operating Cash Flow | ($3,534) | $13,567 | $14,023 | $14,484 | $14,949 | $15,418 | $15,893 | $6,755 |
| Sale Proceeds: | ||||||||
| Sale Value | $0 | $2,000,545 | $2,000,545 | $2,000,545 | $2,000,545 | $2,000,545 | $2,000,545 | $2,000,545 |
| Less: Sale Costs (8%) | 0 | 160,044 | 160,044 | 160,044 | 160,044 | 160,044 | 160,044 | 160,044 |
| Less: Loan Repayment | 0 | 457,500 | 457,500 | 457,500 | 457,500 | 457,500 | 457,500 | 457,500 |
| Sale Proceeds Before Tax | 0 | 1,383,001 | 1,383,001 | 1,383,001 | 1,383,001 | 1,383,001 | 1,383,001 | 1,383,001 |
| Ratio Analysis: | ||||||||
| Profitability Ratios | ||||||||
| Capitalization Rate | 2.84% | 4.98% | 5.03% | 5.08% | 5.13% | 5.19% | 5.24% | 5.27% |
| Cash on Cash Before Tax | (1.27%) | 2.85% | 2.95% | 3.04% | 3.14% | 3.24% | 3.34% | 3.41% |
| Accounting RoR Before Tax | 2.85% | 2.95% | 3.04% | 3.14% | 3.24% | 3.34% | ||
| Current RoR Before Tax | 0.98% | 1.01% | 1.05% | 1.08% | 1.11% | 1.15% | ||
| Risk Ratios | ||||||||
| Debt Coverage Ratio | 0.811 | 1.424 | 1.438 | 1.452 | 1.467 | 1.481 | 1.496 | 1.506 |
| Breakeven Occupancy | 102.5% | 78.6% | 78.3% | 78.0% | 77.7% | 77.3% | 77.0% | 76.8% |
| Loan Balance/Property Value | 22.9% | 22.9% | 22.9% | 22.9% | 22.9% | 22.9% | 22.9% | |
| Assumption Ratios | ||||||||
| NOI/Property Value | 2.28% | 2.30% | 2.32% | 2.35% | 2.37% | 2.40% | 2.41% | |
| Gross Income Multiple | 19.78 | 19.58 | 19.39 | 19.20 | 19.01 | 18.82 | ||
| Operating Expense Ratio | 46.9% | 46.9% | 46.9% | 46.9% | 46.9% | 46.9% | 46.9% | 46.9% |
| Analysis Measures: | ||||||||
| IRR Before Debt | 58.0% | 34.2% | 24.9% | 19.9% | 16.9% | 14.8% | 14.1% | |
| IRR Before Tax | 96.9% | 52.5% | 36.3% | 27.9% | 22.8% | 19.4% | 18.3% | |
| NPV Before Debt @12.00% | $659,672 | $531,245 | $416,904 | $315,106 | $224,480 | $143,801 | $112,855 | |
| NPV Before Tax @12.00% | $688,403 | $575,640 | $475,283 | $385,971 | $306,493 | $235,768 | $208,647 |
| Risk Analysis | Proforma Income Statement | Assumptions Page |
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