Download - Income property showcase august 2012
August 2012
Income Property Showcase
If you have interest in acquiring a property like the one presented here, please send an email to
and we’ll send you access to the due diligence information for that property.
TODAY’S AGENDAEvaluate propertyEvaluate markets
Take notesSolicit feedback through polls
Acquisition follow up procedureExit Survey
DisclaimersInformation may not be accurate
High reliance on 3rd parties for infoAll forecasts are inherently inaccurate
DO YOUR OWN DUE DILIGENCE before making an investment decision
Real Estate Profit CentersCash throw off (aka cashflow)Tax savings from depreciation
Equity growth from loan amortizationEquity growth from price appreciation
Forced Equity from change of use /development
All numbers in this presentation show annualized profits solely using Cash Throw Off. Your returns could be potentially much higher when factoring all of the ways you can make money in real estate.
Atlanta, GeorgiaAtlanta is the primary transportation hub of the Southeastern United States
The Atlanta Metro is the 9th largest metro area in the nation with over 5.3 million residentsIts economy ranks 15th among world cities and 6th in the nation
Clydesdale - Atlanta
Top Economic Drivers in Atlanta, GA1.Logistics and Transportation
Norfolk Southern and CSX railroad companies Hartsfield-Jackson Atlanta International Airport Delta Airlines UPS
2.Media Operations Cable News Network Turner Broadcasting System Cox Enterprises
3.Government Administration State capital functions Federal judiciary court systems Atlanta Police Deparment
4.Higher Education More than 30 colleges and universities located in Atlanta Georgia Institute of Technology / Georgia State University / Clark Atlanta University
5.Other Coca-Cola The Home Depot AT&T Mobility
Clydesdale - Atlanta
Top Local Employers
Norfolk Southern RailroadsCSX Railroads
Hartsfield-Jackson Atlanta Intl AirportUPS
Cable News NetworkTurner Broadcast Systems
COX EnterprisesCoca Cola
Home DepotAT&T
Georgia Institute of TechnologyGeorgia State University
Clydesdale - Atlanta
“Bread and butter”Atlanta, Georgia
Single family home Built in ~2002 3 bed / 2 bath 1,118 Sq Ft
Property Information
Clydesdale - Atlanta
Purchase Price: $70,000
Gross Rent: $850
Vacancy -$75
Management -$77
Property Taxes -$85
Insurance -$50
Maintenance -$45
Net Operating Income $518
CAP Rate 8.9%
Financial Information
Clydesdale - Atlanta
Purchase Price $70000
Down Payment 20%
Down Payment $14000
Loan $56000
Closing Costs $5,000
Total Cash Invested $19,000Interest Rate 4.5%
Loan Term 30 years
Monthly Payment -$284
NOI $605
Cashflow $321
Cash Throw Off 20.3%
Financing Information
Clydesdale - Atlanta
Mableton, GA is a part of the 5 county Atlanta Metropolitan Area.
Location Information
Clydesdale - Atlanta
How can I make money with this property ?
• Rental income: creates monthly spendable cashflow
• High leverage: 80% LTV at historically low fixed rates
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation over 27.5 years
• Resell to owner occupant when market strengthens
• Potential Rent Increases from housing shortage:
• population growth + restricted land supply + lack of new construction
Clydesdale - Atlanta
Kansas City, MO29th largest metro in the US
In 2010 Forbes.com ranked Kansas City as the third most dangerous city in the country2010, Money Magazine rated Overland Park, Kansas, the 7th best city to live in the United States
Kansas City, MO
Over 2 million people live in the metro
Location Information
Kansas City, MO
Top Economic Drivers in Kansas City, MO1. US Federal Government
Over 146 federal agencies make it the largest employer in the metro IRS has 4,000 employees Federal Reserve Bank GSA has 800 employees Social Security Administration employs 1,700
2.Company Headquarters Sprint Nextel - Fortune 500 H&R Block - Fortune 500 AMC Theaters - Fortune 1000 Applebees - Fortune 1000 Garmin Internation - Fortune 1000 Russell Stover’s Candies - Fortune 1000
3.Agriculture Dairy Farmers of America Kansas City Board of Trade (principal commodity exchange for wheat)
4.Manufacturing Ford and General Motors assembly plant Smith Electric Vehicles Honeywell nuclear weapons manufacturing Marion Laboratories is one of nations largest drug manufacturers Kansas City, MO
Bite Sized RentalKansas City, MO
Currently being rehabbed
3 bed / 1 bath each 1,197 Sq Ft 1912
Property Information
Kansas City, MO
Purchase Price: $39000
Gross Rent: $650
7% Vacancy -$46
10% Management -$60
Property Taxes -$24
Insurance -$42
Maintenance -$30
Replacement -$50
Net Operating Income $399
CAP Rate 12.3%
Financial Information
Kansas City, MO
Purchase Price $39000
Down Payment 35%
Down Payment $13650
Loan $25350
Closing Costs $3,000
Total Cash Invested $16,650Interest Rate 6.5%
Loan Term 30 years
Monthly Payment -$160.23
NOI $399
Cashflow $238.77
Cash Throw Off 17.2%
Financing Information
Non-Recourse IRA Loan
Kansas City, MO
How can I make money with this property ?
• Rental income: creates monthly spendable cashflow
• Non-recourse IRA loans / commercial blanket loans available
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation over 27.5 years
• Resell to owner occupant with seller financing
Kansas City, MO
Tulsa, OK2nd largest city in Oklahoma.
Tulsa County is the most densely populated county in OK.
Claremore, OK
Tulsa Metro Area boasts ~1 million people
Population Information
Claremore, OK
Top Economic Drivers in Tulsa, OK1.Aerospace
American Airlines Tulsa International Airport FlightSafety International
2.Oil / Natural Gas Baker Hughes Williams Companies SemGroup Syntroleum WindStream Communciations
3.Shipping and Cargo Tulsa International Airport Tulsa Port of Catoosa
4.Higher Education University of Tulsa / Oral Roberts University
5.Other QuikTrip BOK Financial Corporation Dollar Thrifty Automotive Group
Claremore, OK
Top Local Employers
AMERICAN LEATHERARMY & AIR FORCE EXCHANGE
SERVICESOLO CUP COMPANY
SWIFT TRANSPORTATIONTEXWOOD INDUSTRIES INC
US POSTAL SERVICE DISTRIBUTION CENTER
VA NORTH TEXAS HEALTH CARE SYSTEM
American AirlinesTulsa Intl. Airport
Williams Gas Pipeline TranscoSEMGroup Corp.Syntroleum Corp.
Tulsa Port of CatoosaUniversity of Tulsa
Oral Roberts UniversityQuikTrip Corp.
BOK Financial Corp.Dollar Thrifty Automotive Group
FlightSafety Intl
Baker HughesWindstream Communications
Claremore, OK
Claremore is a Suburb of Tulsa, OKAdjacent to Rogers State University and Claremore Hospital
Location Information
Claremore, OK
Singly Family ResidenceClaremore, OK (Tulsa)
Claremore, OK
Single family home Built in ~1950 4 bed / 2 bath Detached 1 car garage 1,587 sq ft Can be leased as a 4/2 SFR or as a non-conforming duplex 3/1 + 1/1
Property Information
Claremore, OK
Purchase Price: $55,000
Gross Rent: $700
7% Vacancy -$49
Management -$65.10
Property Taxes -$32
Insurance -$35
Maintenance -$60
HOA / Misc $0
Net Operating Income $458.90
CAP Rate 10.01%
Financial Information
Claremore, OK
Purchase Price $55,000
Down Payment 20%
Down Payment $11,000
Loan $44,000
Closing Costs $3,000
Total Cash Invested $14,000Interest Rate 4.5%
Loan Term 30 years
Monthly Payment -$222.94
NOI $458.90
Cashflow $235.96
Cash Throw Off 20.2%
Financing Information
Claremore, OK
How can I make money with this property ?
• SUPER CASHFLOW of 20%?!?!?!?!?!?
• High leverage: 80% LTV at historically low fixed rates
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation over 27.5 years
• Resell to owner occupant when market strengthens
Claremore, OK
Fiesta Apartments12 unit apartments - Tulsa, OK
12 Unit Apartment Complex 2 Buildings. 2 Stories Built in ~1959 4 bed / 2 bath 8,212 Sq Ft 2 blocks from the University of Tulsa
Property Information
Fiesta - Tulsa
Purchase Price: $330,000
Gross Rent: $51,808
Vacancy -$2,590
Management -$1,727
Property Taxes -$4,632
Insurance -$2,780
Maintenance -$4,106
Utilities / Misc -$14,151Laundry/Electrical Reimbursement $7,206
Net Operating Income $29,028
CAP Rate 8.80%
Financial Information
Fiesta - Tulsa
Purchase Price $330,000
Down Payment 25%
Down Payment $82,500
Loan $247,500
Closing Costs $8,000
Total Cash Invested $90,500Interest Rate 5.5%
Loan Term 25 years
Monthly Payment -$1519.87
NOI $2,419
Cashflow $899
Cash Throw Off 12%
Financing Information
Fiesta - Tulsa
Fiesta - Tulsa
How can I make money with this property ?
• High CASHFLOW from Rental income
• Ability to raise rents = forced equity
• 25 Year Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation
• Capital gains potential from future CAP Rate compression
Fiesta - Tulsa
“Double Fourplex”Class C - Income Property in Path of Progress
Midtown - Tulsa, OK walk to Hillcrest Hospital, Drillers Stadium, BOK Center
2 Fourplexes Fully Leased 2 bed / 1 bath x 4 1 bed / 1 bath x 4 1 car garage each 5,478 Sq Ft 0.31Acres Built in 1955 $38/sf Separate electric meters
Property Information
Oaks Apartments - Tulsa
walk to hospital and 1 mile to downtown
Population Information
Oaks Apartments - Tulsa
Purchase Price: $200000
Gross Rent: $34,800
8% Vacancy -$2,784
8% Management -$2,561
Property Taxes -$1,700
Insurance -$1,600
Maintenance -$6,500
Net Operating Income $19,655
CAP Rate 9.83%
Financial Information
Oaks Apartments - Tulsa
Purchase Price $200000
Down Payment 25%
Down Payment $50000
Loan $150000
Closing Costs $5,000
Total Cash Invested $55,000Interest Rate 4.5%
Loan Term 30 years
Monthly Payment -$760
NOI $1,638
Cashflow $878
Cash Throw Off 19.2%
Financing Information
Oaks Apartments - Tulsa
How can I make money with this property ?
• Rental income: creates monthly spendable cashflow
• 75% LTV at historically low fixed rates
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation over 27.5 years
• Efficiency of management if purchasing both properties, but dual exit strategy
• Potential appreciation from CAP rate compression
Oaks Apartments - Tulsa
“Double Duplex”Pride of Ownership Property
Broken Bow OK (Tulsa)
2 Duplexes Fully Leased 3 bed / 2 bath each 1 car garage each 2,232 Sq Ft 0.67 Acres 1981
Property Information
Duplexes - Broken Arrow
Purchase Price: $150000
Gross Rent: $1,600
Vacancy -$112
Management -$149
Property Taxes -$150
Insurance -$67
Maintenance -$60
HOA / Misc $0
Net Operating Income $1,063
CAP Rate 8.50%
Financial Information
Duplexes - Broken Arrow
Purchase Price $150000
Down Payment 20%
Down Payment $30000
Loan $120000
Closing Costs $5,000
Total Cash Invested $35,000Interest Rate 4.5%
Loan Term 30 years
Monthly Payment -$608
NOI $1063
Cashflow $455
Cash Throw Off 15.6%
Financing Information
Duplexes - Broken Arrow
How can I make money with this property ?
• Rental income: creates monthly spendable cashflow
• High leverage: 80% LTV at historically low fixed rates
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation over 27.5 years
• Resell to owner occupant when market strengthens (strong schools)
• Efficiency of management if purchasing both properties, but dual exit strategy
Duplexes - Broken Arrow
Chattanooga, TNThe future of the southeast.
Multifamily - Chattanooga
Chattanooga is located in the heart of the southeast, centrally located between other major cities suchas Nashville, Huntsville, Birmingham, Atlanta, Knoxville, Ashville, Columbia, and Charlotte.
Geographic Information
Multifamily - Chattanooga
Top Economic Drivers in Chattanooga, TN
1. Warehousing & Distribution• Amazon• Kenco Group
2. Manufacturing• Auto: Volkswagen / Miller Industries• Food: Mckee Foods Corporation/ Chattanooga Coca-Cola Bottling Co. • Construction Equipment: Astec Industries, Komatsu America Corp.
3. Insurance Services• Blue Cross BlueShield Of Tennessee/ UNOM
4.Healthcare • Erlanger Health System/ Memorial Health Care/ CIGNA Health Care/ Parkridge Medical Center
5. Higher Education • University of Tennessee at Chattanooga/ Chattanooga State/ Southern Adventist University
6. Utilities• Tennessee Valley Authority/ Electric Power Board of Chattanooga
Multifamily - Chattanooga
Top Local Employers
BlueCross BlueShield of TennesseeTennessee Valley Authority
Erlanger Heath SystemMemorial Health Care System
McKee Foods CorporationUnum Group
Volkswagen Chattanooga
Multifamily - Chattanooga
“Easy Multifamily”Chattanooga, TN
11 Unit Multifamily Complex Totally Renovated in 2011 90.9% Occupancy 10 minutes to downtown. State-funded tenants. Additional lot for potential construction of more units.
Property Information
Multifamily - Chattanooga
Purchase Price: $565,000
Gross Rent: $87,000
Vacancy -$8700
Management -$7830
Property Taxes -$4250
Insurance -$2815
Maintenance -$7200
Utilities / Misc. -$1800
Net Operating Income $53,655
CAP Rate 9.50%
Financial Information
Multifamily - Chattanooga
Purchase Price $565,000
Down Payment 25%
Down Payment $141,250
Loan $423,750
Closing Costs $8,475
Total Cash Invested $149,725Interest Rate 5.5%
Loan Term 20 years
Monthly Payment -$2973.22
NOI $4471.25/Monthly
Cash flow $1498.03/Monthly
Cash Throw Off 12%
Financing Information
Multifamily - Chattanooga
How can I make money with this property ?
• Rental income: creates monthly spendable cash flow
• High leverage: 75% LTV at historically low fixed rates
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation
• Resell in future for profit if CAP rates are compressed and/or if rents increase
• Increased Occupancy/Potential Rent Increases(current rents are 5-10% less than market rents).
• Construction of more units on additional 0.28 acres of land or split and sell-off for immediate equity.
Multifamily - Chattanooga
“Net Leased Family Dollar”Chattanooga, TN
High Visibility Location Strong Traffic Counts Net Leased Asset - Minimal Owner Responsibility
Investment Grade Tenant Built In Rental Increases Lease Expiration - 1/31/2020
Property Information
Family Dollar - Chattanooga
Chattanooga is located in the heart of the southeast, centrally located between other major cities suchas Nashville, Huntsville, Birmingham, Atlanta, Knoxville, Ashville, Columbia, and Charlotte.
Geographic Information
Family Dollar - Chattanooga
Family Dollar - Chattanooga
Top Local Employers
AmazonErlanger Medical CenterParkridge Valley Hospital
Chattanooga Metropolitan AirportChattanooga School for the Liberal Arts
Hickory Valley Golf Course
Hilton Garden Inn
Family Dollar - Chattanooga
Purchase Price: $678,000
Gross Rent: $56,000
Vacancy $0
Management $0
Property Taxes $0
Insurance $0
Maintenance -$1000
HOA / Misc $0
Net Operating Income $55000
CAP Rate 8.11%
Financial Information
Family Dollar - Chattanooga
Family Dollar Stock Price
Purchase Price $678,000
Down Payment 15%
Down Payment $101,700
Loan $576,300
Closing Costs $7,000
Total Cash Invested $108,700Interest Rate 4.75%
Loan Term 25 years
Monthly Payment -$3865.40
NOI $4,583.33
Cashflow $717.93
Cash Throw Off 7.9%
Financing Information
Family Dollar - Chattanooga
How can I make money with this property ?
• Rental income: creates monthly spendable cashflow
• High leverage: 85% LTV at historically low fixed rates
• Commercial Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation
• Built in rent increases force equity
• CAP Rate compression
• SIMPLICITY!!!
• Resume builder / syndication opportunity
Family Dollar - Chattanooga
Bite Sized- single tenant retailChattanooga, TN
Proven Location / At this location since 2001
National Investment Grade Credit Tenant
Lease expires 4/30/15 Rental Increase in 2015 at 3 yr renewal option
Built in 1983, Remodeled in 2001
2,200 Sq Ft.
Property Information
H&R Block - Chattanooga
Purchase Price: $199,588
Gross Rent: $24000
Vacancy $0
Management $0
Property Taxes -$5034
Insurance -$1000
Maintenance -$1500
HOA / Misc $0
Net Operating Income $16466
CAP Rate 8.25%
Financial Information
H&R Block - Chattanooga
Purchase Price $199588
Down Payment 25%
Down Payment $49897
Loan $149691
Closing Costs $4,000
Total Cash Invested $53,897Interest Rate 5%
Loan Term 25 years
Monthly Payment -$875.15
NOI $1,372
Cashflow $497
Cash Throw Off 11.1%
Financing Information
H&R Block - Chattanooga
How can I make money with this property ?
• Rental income: creates monthly spendable cashflow
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation over 39 years
• Resell to owner occupant (potential owner user property)
• Rent Increase at renewal period
• CAP Rate compression would increase the value of property
H&R Block - Chattanooga
NN Lease Post Office“mail box money”
Leased till 1/31/17 Highest producing post office in county
Located in central business area of Columbus, NC
Leased with USPS since 1987 Built in 1987 - Build to Suit 4182 sf building on 1.11 acres 36 Parking Spaces Landlord pay roof & insurance New roof in 2009 with warranty
Property Information
Post Office - Columbus
The USPS employs over 574,000 workers and operates over 218,000 vehicles.
The USPS is the operator of the largest vehicle fleet in the world.
The USPS traces its roots to 1775 during the Second Continental Congress, where Benjamin Franklin was appointed the first postmaster general.
The USPS is legally obligated to serve all Americans, regardless of geography, at uniform price and quality.
Will the post office go out of business?
Post Office - Columbus
Purchase Price: $525000
Gross Rent: $51000
Vacancy $0
Management $0
Property Taxes $0
Insurance -$1,059
Maintenance -$300
HOA / Misc $0
Net Operating Income $49641
CAP Rate 9.46%
Financial Information
$12.21 /sf NN
Post Office - Columbus
Purchase Price $525000
Down Payment 25%
Down Payment $131250
Loan $393750
Closing Costs $6,000
Total Cash Invested $137,250Interest Rate 5.5%
Loan Term 25 years
Monthly Payment -$2418
NOI $4,137
Cashflow $1719
Cash Throw Off 15.0%
Financing Information
Post Office - Columbus
Columbus, NC is located off Interstate 26 which connects to the greater Southeast region It is the county seat of Polk County
Geographic Information
Post Office - Columbus
County Seat - Center of Town
Post Office - Columbus
How can I make money with this property ?
• Rental income: creates monthly spendable cashflow
• Commercial Financing: 75% LTV at historically low fixed rates
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation over 39 years
• Re-use as medical, professional office, local government, etc.
• Substantial CAP Rate compression upon renewal of lease or stability of USPS
• Syndication opportunityPost Office - Columbus
Louisville, Kentucky
Louisville’s strategic location makes it the hub of America’s shipping and cargo industries
Office - Louisville
Louisville, KY is the 17th largest city in the nationThe Louisville Metro includes over 1.3 million residents
Population Information
Office - Louisville
Top Economic Drivers in Louisville, KY1.Shipping
Worldport global air-freight hub for UPS Louisville International Airport Louisville and Portland Canal
2.Cargo Louisville and Nashville Railroad Crossroads of major interstate highways
3.Healthcare / Medicine Humana PharMerica Norton Healthcare Inc.
4.Manufacturing Ford production plants General Electric appliance factory
5.Higher Education University of Louisville Bellarmine University Spalding University Sullivan University
Office - Louisville
Submarket Description
Location Information
Office - Louisville
Top Local Employers
UPSFORD
HUMANAPHARMERICA
GENERAL ELECTRICUNIVERSITY OF LOUISVILLE
NORTON HEALTHCARE INC.LOUISVILLE AND PORTLAND CANAL
LOUISVILLE INTERNATIONAL AIRPORT
Office - Louisville
“NNN Single Tenant Office”in Louisville, KY
ENORMOUS CASHFLOW
Office - Louisville
Office - Louisville
Office - Louisville
Office - Louisville
Office - Louisville
Business Park - Office Built in 1996 Recently remodeled Class B Office Space Roof replaced in 2009 100% Occupied 6,000 SF 0.36 Acres 100% Leased NNN
Property Information
Office - Louisville
Purchase Price: $625,000
Gross Rent: $84,000
Vacancy $0
Management -$4200
Property Taxes $0
Insurance $0
Maintenance -$1200
HOA / Misc $0
Net Operating Income $78600
CAP Rate 12.6%
Financial Information
Office - Louisville
Purchase Price $625,000
Down Payment 20%
Down Payment $125,000
Loan $500,000
Closing Costs $8,000
Total Cash Invested $133,000Interest Rate 5%
Loan Term 25 years
Monthly Payment -$2923
NOI $6,550
Cashflow $3,627
Cash Throw Off 32.7%
Financing Information
Office - Louisville
How can I make money with this property ?
• Rental income: creates HUGE monthly spendable cashflow
• High Commercial leverage: 80% LTV at historically low rates
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation over 39 years
• Four diverse tenants + one master tenant
• Syndication opportunity
• Arbitrage opportunity
Office - Louisville
Denver, ColoradoBeing the largest city within 500 miles, it is a hub of storage and distribution of goods and services to both the Mountain States and Western United States.
The Denver Metropolitan Area boasts a population of nearly 3 million
Brook Forrest - Colorado
Evergreen, CO is only 35 minutes from downtown DenverIt offers all season recreational activities
Location Information
Brook Forrest - Colorado
Top Economic Drivers in Denver, CO
1.Trade Denver International Airport
2.Telecommunications Mountain States Telephone and Telegraph Company (now Qwest) Dish Network Comcast
3.Engineering EnCana Haliburton Smith International
4.Tourism Rocky Mountains
5.Food Corporations Chipotle headquarters Quizno’s headquarters
6.Higher Education University of Denver / University of Colorado, Denver / University of Colorado, Boulder
Multi-Family - Denver
The Denver Metropolitan Area boasts a population of nearly 3 millionIt is the 21st most populous US metropolitan area
Population Information
Multi-Family - Denver
“Swiss Chalet”Long term rental with vacation rental potential
Evergreen, CO (Denver)
Brook Forrest - Colorado
Brook Forrest - Colorado
Nestled in Ideal Vacation Setting
6 Unit Complex Three Studios Two 1 bed / 1 bath One 2 bed / 1 bath Built 1924 Remodeled 2010
Property Information
Brook Forrest - Colorado
Purchase Price: $310,000
Gross Rent: $4,185
6% Vacancy -$251
10% Management -$419
Property Taxes -$284
Insurance -$170
Maintenance -$120
Utilities -$869
Net Operating Income $2072
CAP Rate 8.0%
Financial Information as long term rental
Brook Forrest - Colorado
Purchase Price $310,000
Down Payment 25%
Down Payment $77,500
Loan $232,500
Closing Costs $8,000
Total Cash Invested $85,500Interest Rate 6%
Loan Term 25 years
Monthly Payment -$1539
NOI $2072
Cashflow $533
Cash Throw Off 7.5%
Financing Information
Brook Forrest - Colorado
Brook Forrest - Colorado
Subject
Brook Forrest Inn
Brook Forrest - Colorado
Brook Forrest - Colorado
Evergreen Colorado Vacation Cabins$100-250/night
Brook Forrest - Colorado
Rental Rates$85-225/night
Brook Forrest - Colorado
Purchase Price: $410,000 (includes $100k furnishings)
Gross Rent: $273,750 $125 / night x 6 units
35% Vacancy -$95,813
24% Management -$42,705
Property Taxes -$3,408
Insurance -$3,600
Maintenance / Replacement -$21,600
Utilities -$17,628
Net Operating Income $88,997
CAP Rate 21.7%
Financial Information as vacation rental
Brook Forrest - Colorado
Purchase Price $310,000
Down Payment 25%
Down Payment $77,500
Loan $232,500
Closing Costs including furnishings $108,000
Total Cash Invested $185,500Interest Rate 6%
Loan Term 25 years
Monthly Payment -$1539
NOI $7,416
Cashflow $5877
Cash Throw Off 38.0%
Financing Information as Vacation Rental
Brook Forrest - Colorado
How can I make money with this property ?
• Rental income: creates monthly spendable cashflow
• High leverage: 75% LTV at historically low fixed rates
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation over 39 years
• Hold as long term rental or convert vacation rental (run as B&B at retirement)
• Syndication as a fractional ownership / lifestyle property
Brook Forrest - Colorado
Multi-Family HomeSandy from Denver, CO
Top Local Employers
HaliburtonDenver International Airport
EnCanaSmith International
Chipotle HeadquartersUniversity of Denver
University of Colorado, Denver
Multi-Family - Denver
Non-conforming triplex Built in ~1962 Remodeled 2009 3bed 2 bath 2bed 2 bath 2 bed 2 bath ~3,640 sq ft
Property Information
Multi-Family - Denver
Multi-Family - Denver
Purchase Price: $190000
Gross Rent: $2095
6% Vacancy -$126
10% Management -$210
Property Taxes -$174
Insurance -$70
Maintenance -$100
Utilities -$120
Net Operating Income $1,295
CAP Rate 8.18%
Financial Information
Multi-Family - Denver
Purchase Price $190000
Down Payment 25%
Down Payment $47500
Loan $142500
Closing Costs $6,000
Total Cash Invested $53,500Interest Rate 4.5%
Loan Term 30 years
Monthly Payment -$722
NOI $1295
Cashflow $573
Cash Throw Off 12.9%
Financing Information
Multi-Family - Denver
How can I make money with this property ?
• Rental income: creates monthly spendable cashflow
• High leverage: 75% LTV at historically low fixed rates
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation over 39 years
• Potential appreciation from rent increases and CAP rate compression
Multi-Family - Denver
Dallas, TexasIf Texas were a country, it would be the 11th largest economy in the world
McKinney Apartments
Top Economic Drivers in Dallas, TX1.Aerospace
Southwest Airlines / American Airlines DFW Airport
2.Oil / Natural Gas Exon / Mobile / Ambit Energy
3.Distribution Centers Trucking / NAFTA Highway Inland Port of Dallas / Heavy Rail: BNSF
4.Manufacturing Auto: General Motors / Toyota Aerospace: Vought / Boeing / Bell Helicopter Food: Frito Lay / Dr. Pepper / Snapple / Dean Foods
5.Information Technology ATT / Texas Instruments / Verizon / Radioshack / Affiliated Computer Services Data storage
6.Healthcare Triad Hospitals / Baylor Health Care / Kimberly Clark
7.Higher Education University of North Texas / University of Texas Arlington / Southern Methodist
McKinney Apartments
Dallas-Fort worth is the 4th largest metro area in the nation with almost 7 million residents
Population Information
McKinney Apartments
McKinney, TX ranked as 5th best places to live in America by CNN.It is one in one of the fastest growing counties in the country.
Location Information
McKinney Apartments
“C Apartments in a B+ Area”Mckinney, TX
McKinney Apartments
38 Units Five parcels of duplexes, fourplexes, and sixplexes
15,000 SF Diverse Unit Mix Consistent High Occupancy
Redevelopment Potential
Property Information
McKinney Apartments
Purchase Price: $1,200,000
Gross Rent: $264,480
7% Vacancy -$18,514
Management -$13,200
Property Taxes -$16,354
Insurance -$3,421
Maintenance -$35,850
Utilities / Misc -$44,378
Net Operating Income $132,763
CAP Rate 11.1%
Financial Information - Annualized
McKinney Apartments
Purchase Price $1,200,000
Down Payment 35%
Down Payment $420,000
Loan $780,000
Closing Costs $15,000
Total Cash Invested $435,000Interest Rate 5.5%
Loan Term 25 years
Monthly Payment -$4674
NOI $11,406
Cashflow $6,732
Cash Throw Off 18.6%
Financing Information
Seller financing available
McKinney Apartments
How can I make money with this property ?
• Rental income: HUGE monthly spendable cashflow
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation
• Sell off each property separately for gain or reduce cash basis
• Potential Rent Increases from housing shortage
• Syndication opportunity
• Redevelopment / expansion opportunity
• Class C+ property in B+ area
McKinney Apartments
Dallas, TexasIf Texas were a country, it would be the 11th largest economy in the world
McKinney Apartments
Dallas-Fort worth is the 4th largest metro area in the nation with almost 7 million residents
Population Information
Paraiso Escondido - Dallas
Duncanville boasts highly desirable schools.Tens of thousands of jobs within 10 minutes.
Location Information
Paraiso Escondido - Dallas
Top Local Employers
AMERICAN LEATHERARMY & AIR FORCE EXCHANGE
SERVICESOLO CUP COMPANY
SWIFT TRANSPORTATIONTEXWOOD INDUSTRIES INC
US POSTAL SERVICE DISTRIBUTION CENTER
VA NORTH TEXAS HEALTH CARE SYSTEM
Paraiso Escondido - Dallas
“Bread and butter”David from Benicia, CA
Single family home Built in ~2012 4 bed / 2 bath 1 car garage ~1,457 sq ft 10 yr builder warranty 6,000 sf lot
Property Information
Paraiso Escondido - Dallas
Purchase Price: $115,000
Gross Rent: $1150
Vacancy -$69
Management -$108.10
Property Taxes -$239.58
Insurance -$55
Maintenance -$40
HOA / Misc $0
Net Operating Income $638.32
CAP Rate 6.66%
Financial Information
Paraiso Escondido - Dallas
Purchase Price $115,000
Down Payment 20%
Down Payment $23,000
Loan $92,000
Closing Costs $5,000
Total Cash Invested $28,000Interest Rate 4.5%
Loan Term 30 years
Monthly Payment -$466.15
NOI $638.32
Cashflow $172.17
Cash Throw Off 7.4%
Financing Information
Paraiso Escondido - Dallas
Purchase Price $115,000
Down Payment 5%
Down Payment $5,750
Loan $109,250
Closing Costs $5,000
Total Cash Invested $10,750Interest Rate 4.5%
Loan Term 30 years
Monthly Payment -$553.55
NOI $638.32
Cashflow $84.77
Cash Throw Off 9.5%
SPECIAL Financing Information
5% DOW
N!!!
Paraiso Escondido - Dallas
How can I make money with this property ?
• Rental income: creates monthly spendable cashflow
• SUPER High leverage: 95% LTV at historically low fixed rates
• Loan Amortization: tenant’s pay down mortgage
• Tax Benefits: depreciation over 27.5 years
• Resell to owner occupant when market strengthens
• Potential Rent Increases from housing shortage:
• population growth + restricted land supply + lack of new construction
Paraiso Escondido - Dallas
August 2012
Income Property Showcase
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