new hacienda de milargos · 2020. 10. 18. · biel- westermeyer 520 850 8080 [email protected] 13...

Biel- Westermeyer

520 850 8080

[email protected]

13 Units in redevelopment area

Hacienda de Milargos

437 W Miiracle Mile

Tucson AZ 85705

C-2 zoning

Presented by

2020 Velocity llc

4760 N Oracle rd suite 130

Cash flow

Value Add Opportunity

Opportunity zone

Tucson, AZ 85737

Prepared for

Marketing Package

Potential Rental Income 102,600$ Purchase/Asking Price 575,000$ Property Type Apartments

Other Income - Improvements 65,000 No. of Units 13

Total Vacancy and Credits (5,130) Other - Price Per Unit 49,673$

Operating Expenses (35,970)$ Closing Costs 5,750 Total Sq Ft -

Annual Reserves: $ Finance Points - Price Per Sq Ft $

Net Operating Income (NOI) 61,500$ Income per Unit 7,892$

MIP Payments $ Total Acquisition Cost 645,750$ Expenses per Unit (2,767)$

Annual Reserves: $ Debt Service: $

Mortgage (s) $

Cash Flow Before Taxes 61,500$

(16,342) Down Payment / Investment 645,750$

Cash Flow After Taxes 45,158$

% of Asking % of Cost

Rental Growth Rate: 2.00% Down Payment: 645,750$ 112.30% 100.00%

Expense Growth Rate: 1.00% Initial Loan Balance: $ 0.00% 0.00%

Capitalization Rate (Resale): 7.00%

Marginal Tax Rate: 0.00% Loan Amount Interest Rate Term Payment

Capital Gain Tax Rate: 0.00% $ 0.00% 0 $0

$ 4.50% 0 $0

$ 4.50% 0 $0

Year 1 Year 3 Year 7

Debt Coverage Ratio (DCR) - - -

Loan-to-Value Ratio (LVR) 0.0% 0.0% 0.0%

Capitalization Rate Based on Cost 9.52% 10.02% 11.09%

Capitalization Rate Based on Resale Price 7.00% 7.00% 7.00%

Gross Rent Multiplier 5.60 8.66 8.85

13.50% 143,803 102,347 40,343

10.00% 154,069 129,205 86,867

Cash on Cash Return - Before Taxes 9.52% 10.02% 11.09%

Cash on Cash Return - After Taxes 6.99% 7.35% 8.01%

Internal Rate of Return - Before Taxes 19.67% 14.74%

Internal Rate of Return - After Taxes 17.31% 12.37%

18.24% 12.10%

16.36% 10.64%

Financial Measurements Notes / Discussion

Loan InformationAssumptions

The information, calculations and data presented in this report are believed to be accurate but are not guaranteed. The information contained in this report shall not be considered as

a substitution for legal, accounting or other professional advice. Please seek proper legal and tax advice as appropriate before making investments.

Modified Internal Rate of Return - Before Taxes

Modified Internal Rate of Return - After Taxes

Net Present Value (NPV) - B/ Taxes

Net Present Value (NPV) - A/Taxes

Disclaimer: All information presented is believed to be accurate.

Income Taxes: Benefit (Expense) @ 0%


437 W Miiracle Mile

Tucson AZ 85705

Income, Expenses & Cash Flow

Biel- Westermeyer

2020 Velocity llc

520 850 8080

Property Overview

Cash Flow Analysis Hacienda de Milargos

437 W Miiracle Mile

Tucson AZ 85705

Potential Rental Income 102,600$ 104,652$ 106,745$ 108,880$ 111,058$

Less: Vacancy & Credit Losses (5,130) (5,233) (5,337) (5,444) (5,553)

Effective Gross Income 97,470$ 99,419$ 101,408$ 103,436$ 105,505$

Less: Operating Expenses (35,970) (36,330) (36,693) (37,060) (37,431)

Net Operating Income (NOI) 61,500$ 63,090$ 64,715$ 66,376$ 68,074$

Less: Annual Debt Service - - - - -

CASH FLOW Before Taxes 61,500$ 63,090$ 64,715$ 66,376$ 68,074$

Projected Sales Price 878,571$ 901,281$ 924,497$ 948,229$ 972,488$

Less: Selling Expenses (43,929) (45,064) (46,225) (47,411) (48,624)

Adjusted Projected Sales Price 834,643$ 856,217$ 878,272$ 900,817$ 923,863$

Less: Mortgage(s) Balance Payoff - - - - -

SALE PROCEEDS Before Taxes 834,643$ 856,217$ 878,272$ 900,817$ 923,863$

Cash Generated in Current Year 45,158$ 46,450$ 47,457$ 48,487$ 49,540$

Cash Generated in Previous Years n/a 45,158 91,608 139,065 187,552

Cash Generated from Property Sale 834,643 856,217 878,272 900,817 923,863

Original Initial Investment (645,750) (645,750) (645,750) (645,750) (645,750)

234,051$ 302,075$ 371,587$ 442,620$ 515,206$

Capitalization Rate Based on Cost 9.52% 9.77% 10.02% 10.28% 10.54%

Capitalization Rate Based on Resale Price 7.00% 7.00% 7.00% 7.00% 7.00%

Break-Even Ratio 35.06% 34.71% 34.37% 34.04% 33.70%

Operating Expense Ratio 36.90% 36.54% 36.18% 35.83% 35.48%

Net Present Value (NPV) - Before Taxes 13.50% 143,803 122,058 102,347 84,483 68,296

Cash-on-Cash Return with Equity 36.24% 8.15% 8.12% 8.09% 8.06%

Cash-on-Cash Return - Before Taxes 9.52% 9.77% 10.02% 10.28% 10.54%

Internal Rate-of-Return (IRR) - Before Taxes 38.78% 24.17% 19.67% 17.48% 16.19%

Modified Internal Rate-of-Return (MIRR) - Before Taxes 38.78% 23.24% 18.24% 15.68% 14.08%

Financial Measurements

Year 4 Year 5

Cash Position

Rental Activity Analysis

Total Potential CASH Generated

Year 3Year 2

Property Resale Analysis

Year 1

Biel- Westermeyer

520 850 8080

10/17/2020 12:45 PM © 1993 - 2020 Cash Flow Analyzer® https://RentalSoftware.com


437 W Miiracle Mile

Tucson AZ 85705

Per unit Total Percent of Monthly Rent Monthly Annual

Sq Ft Sq Ft Total Rev/ Sq Ft Per Unit Rent Rent

2 story 1br 1 0 0 0.00% 0.000 750$ 750$ 9,000$

1br 4 0 0 0.00% 0.000 675$ 2,700$ 32,400$

Studio 6 0 0 0.00% 0.000 625$ 3,750$ 45,000$

Studio (New) 1 0 0 0.00% 0.000 625$ 625$ 7,500$

1br Casita (detached) 1 0 0 0.00% 0.000 725$ 725$ 8,700$

0 0 0 0 0.00% 0.000 $ $ $

Totals 13 1 0 0.0% 0.000 3,400 8,550$ 102,600$

Biel- Westermeyer

520 850 8080

Unit DescriptionNumber of

Units

7%

31%

46%

8%

8%

Unit Mix

2 story 1br

1br

Studio

Studio (New)

1br Casita (detached)


437 W Miiracle Mile

Tucson AZ 85705

% of % of

Expenses Revenue

250 1.0% 19.23 - 0.7% 0.3%

500 1.0% 38.46 - 1.4% 0.5%

1,500 1.0% 115.38 - 4.2% 1.5%

1,700 1.0% 130.77 - 4.7% 1.7%

600 1.0% 46.15 - 1.7% 0.6%

500 1.0% 38.46 - 1.4% 0.5%

2,400 1.0% 184.62 - 6.7% 2.5%

7,670 1.0% 590.00 - 21.3% 7.9%

450 1.0% 34.62 - 1.3% 0.5%

2,000 1.0% 153.85 - 5.6% 2.1%

500 1.0% 38.46 - 1.4% 0.5%

3,800 1.0% 292.31 - 10.6% 3.9%

1,200 1.0% 92.31 - 3.3% 1.2%

7,200 1.0% 553.85 - 20.0% 7.4%

1,800 1.0% 138.46 - 5.0% 1.8%

3,900 1.0% 300.00 - 10.8% 4.0%

35,970$ 2,767$ - 100.0% 36.9%Total Annual Operating Expenses

Repairs

Supplies

Electricity

Water

Gas

Trash Removal

Management

Annual

Increase

Accounting

Insurance

Per UnitExpense Description

Maintenance

Landscaping

Pest Control

Legal

Property Taxes

Biel- Westermeyer

520 850 8080

Per Sq Ft

Cleaning

Advertising

Annual

Amount

Annual Property Operating Data Hacienda de Milargos

437 W Miiracle Mile

Tucson AZ 85705 Biel- Westermeyer

Year 1 Sq Ft Per Unit Year 2 Sq Ft Per Unit Year 3 Sq Ft Per Unit Year 4 Sq Ft Per Unit Year 5 Sq Ft Per Unit

Potential Rental Income 102,600$ 0.00 657.69 104,652$ 0.00 670.85 106,745$ 0.00 684.26 108,880$ 0.00 697.95 111,058$ 0.00 711.91

Less: Vacancy & Credit Losses (5,130) 0.00 -32.88 (5,233) 0.00 -33.54 (5,337) 0.00 -34.21 (5,444) 0.00 -34.90 (5,553) 0.00 -35.60

97,470$ 0.00 624.81 99,419$ 0.00 637.30 101,408$ 0.00 650.05 103,436$ 0.00 663.05 105,505$ 0.00 676.31

Accounting 250 0.00 1.60 253 0.00 1.62 255 0.00 1.63 258 0.00 1.65 260 0.00 1.67

Advertising 500 0.00 3.21 505 0.00 3.24 510 0.00 3.27 515 0.00 3.30 520 0.00 3.34

Cleaning 1,500 0.00 9.62 1,515 0.00 9.71 1,530 0.00 9.81 1,545 0.00 9.91 1,561 0.00 10.01

Insurance 1,700 0.00 10.90 1,717 0.00 11.01 1,734 0.00 11.12 1,752 0.00 11.23 1,769 0.00 11.34

Landscaping 600 0.00 3.85 606 0.00 3.88 612 0.00 3.92 618 0.00 3.96 624 0.00 4.00

Legal 500 0.00 3.21 505 0.00 3.24 510 0.00 3.27 515 0.00 3.30 520 0.00 3.34

Maintenance 2,400 0.00 15.38 2,424 0.00 15.54 2,448 0.00 15.69 2,473 0.00 15.85 2,497 0.00 16.01

Management 7,670 0.00 49.17 7,747 0.00 49.66 7,824 0.00 50.15 7,902 0.00 50.66 7,981 0.00 51.16

Pest Control 450 0.00 2.88 455 0.00 2.91 459 0.00 2.94 464 0.00 2.97 468 0.00 3.00

Repairs 2,000 0.00 12.82 2,020 0.00 12.95 2,040 0.00 13.08 2,061 0.00 13.21 2,081 0.00 13.34

Supplies 500 0.00 3.21 505 0.00 3.24 510 0.00 3.27 515 0.00 3.30 520 0.00 3.34

Property Taxes 3,800 0.00 24.36 3,838 0.00 24.60 3,876 0.00 24.85 3,915 0.00 25.10 3,954 0.00 25.35

Gas 1,200 0.00 7.69 1,212 0.00 7.77 1,224 0.00 7.85 1,236 0.00 7.93 1,249 0.00 8.00

Electricity 7,200 0.00 46.15 7,272 0.00 46.62 7,345 0.00 47.08 7,418 0.00 47.55 7,492 0.00 48.03

Trash Removal 1,800 0.00 11.54 1,818 0.00 11.65 1,836 0.00 11.77 1,855 0.00 11.89 1,873 0.00 12.01

Water 3,900 0.00 25.00 3,939 0.00 25.25 3,978 0.00 25.50 4,018 0.00 25.76 4,058 0.00 26.02

35,970$ 0.00 230.58 36,330$ 0.00 232.88 36,693$ 0.00 235.21 37,060$ 0.00 237.56 37,431$ 0.00 239.94

61,500$ 0.00 394.23 63,090$ 0.00 404.42 64,715$ 0.00 414.84 66,376$ 0.00 425.49 68,074$ 0.00 436.37

Cash Flow Before Taxes 61,500$ 0.00 394.23 63,090$ 0.00 404.42 64,715$ 0.00 414.84 66,376$ 0.00 425.49 68,074$ 0.00 436.37

Net Operating Income (NOI)

Total Operating Expenses

Operating Expenses

Effective Gross Income

520 850 8080

© 1993 - 2020 Cash Flow Analyzer® https://RentalSoftware.com


Biel- Westermeyer

520 850 8080

Time Net Operating Debt Cash Flow Incomes Cash Flow

Period Income Service Before Tax Taxes After Tax

Int Investment (645,750)$ (645,750)$

Year 1 61,500 - - 61,500 (16,342) 45,158

Year 2 63,090 - - 63,090 (16,640) 46,450

Year 3 64,715 - - 64,715 (17,258) 47,457

Year 4 66,376 - - 66,376 (17,889) 48,487

Year 5 68,074 - - 68,074 (18,534) 49,540

437 W Miiracle Mile

Tucson AZ 85705

MIP Payments

$

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

1 2 3 4 5

Cash Flow After Taxes

Cash Flow Before Taxes



437 W Miiracle Mile


520 850 8080

Time Initial Investment Cash Flow Cash on Cash Income Cash Flow Cash on Cash

Period Adj for Refinance Before Taxes Before Taxes Taxes After Taxes After Taxes

Year 1 645,750$ 61,500$ 9.52% (16,342)$ 45,158$ 6.99%

Year 2 645,750 63,090 9.77% (16,640) 46,450 7.19%

Year 3 645,750 64,715 10.02% (17,258) 47,457 7.35%

Year 4 645,750 66,376 10.28% (17,889) 48,487 7.51%

Year 5 645,750 68,074 10.54% (18,534) 49,540 7.67%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

1 2 3 4 5

After Taxes

Before Taxes



437 W Miiracle Mile


520 850 8080

Time Net Operating Cap Rate on Cost Resale

Period Income (NOI) 645,750$ Value

Year 1 61,500$ 9.52% 878,571$

Year 2 63,090 9.77% 901,281

Year 3 64,715 10.02% 924,497

Year 4 66,376 10.28% 948,229

Year 5 68,074 10.54% 972,488

9.00%

9.20%

9.40%

9.60%

9.80%

10.00%

10.20%

10.40%

10.60%

1 2 3 4 5



437 W Miiracle Mile


520 850 8080

Time Projected Adj Projected Refi Proceeds Mortgage(s) Sale Proceeds Income Taxes Sale Proceeds Property Year / Year

Period Resale Value Increase (if any) Balance Payoff Before Taxes From Sale After Taxes Equity Equity Increase

Year 1 834,643$ 45.16% $ $ 834,643$ $ 834,643$ 834,643$ 188,893$

Year 2 856,217 2.58% - - 856,217 - 856,217 856,217 21,575

Year 3 878,272 2.58% - - 878,272 - 878,272 878,272 22,055

Year 4 900,817 2.57% - - 900,817 - 900,817 900,817 22,545

Year 5 923,863 2.56% - - 923,863 - 923,863 923,863 23,046

$780,000

$800,000

$820,000

$840,000

$860,000

$880,000

$900,000

$920,000

$940,000

1 2 3 4 5



437 W Miiracle Mile


520 850 8080

Before Taxes After Taxes

Year 1 38.78% 36.24%

Year 2 24.17% 21.78%

Year 3 19.67% 17.31%

Year 4 17.48% 15.13%

Year 5 16.19% 13.84%

Internal Rate of Return (IRR)Time Period

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

1 2 3 4 5

IRR After Tax

IRR Before Tax



437 W Miiracle Mile


520 850 8080

Cash on Cash Time Period Potential Operating, Debt, Occupancy BreakEven Max Vacancy BreakEven Max Vacancy

Requirement Rental Income Reserve Expenses Rate (Existing) Occupancy Rate BreakEven Rate Occupancy Rate BreakEven Rate

6.00% w/ Cash on Cash w/ Cash on Cash

Year 1 102,600 (35,970) 95.00% 35.06% 64.94% 72.82% 27.18%

Year 2 104,652 (36,330) 95.00% 34.71% 65.29% 71.74% 28.26%

Year 3 106,745 (36,693) 95.00% 34.37% 65.63% 70.67% 29.33%

Year 4 108,880 (37,060) 95.00% 34.04% 65.96% 69.62% 30.38%

Year 5 111,058 (37,431) 95.00% 33.70% 66.30% 68.59% 31.41%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

1 2 3 4 5

BreakEven Occupancy

BreakEven Occupancy with Cash on Cash Requirment


new hacienda de milargos · 2020. 10. 18. · biel- westermeyer 520 850 8080 [email protected] 13...

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