NEED HELP TO ANALYSIS THIS DEAL.

[Jackson H.]

HI! guys. can you guys let me know if this a good deal or not. I'm in the learning process how to read all this number so I'm trying not to make the wrong decision here. This a 16 unit apartment . Any input will help.

THANKS 

Graphs

Income	Year 1	Year 2	Year 3	Year 5	Year 10	Year 20	Year 30
Gross Rent	$96,312	$99,201	$102,177	$108,400	$125,665	$168,884	$226,966
Vacancy Loss	-$4,816	-$4,960	-$5,109	-$5,420	-$6,283	-$8,444	-$11,348
Laundry	$0	$0	$0	$0	$0	$0	$0
Operating Income	$91,496	$94,241	$97,069	$102,980	$119,382	$160,439	$215,617
Expenses	Year 1	Year 2	Year 3	Year 5	Year 10	Year 20	Year 30
Insurance	-$3,877	-$3,955	-$4,034	-$4,197	-$4,633	-$5,648	-$6,885
Management Fees	-$7,320	-$7,539	-$7,765	-$8,238	-$9,551	-$12,835	-$17,249
Taxes	-$4,771	-$4,866	-$4,964	-$5,164	-$5,702	-$6,950	-$8,473
Misc.	-$6,408	-$6,536	-$6,667	-$6,936	-$7,658	-$9,335	-$11,380
Operating Expenses	-$22,376	-$22,896	-$23,430	-$24,535	-$27,544	-$34,769	-$43,986
Income Analysis	Year 1	Year 2	Year 3	Year 5	Year 10	Year 20	Year 30
Net Operating Income	$69,121	$71,345	$73,639	$78,445	$91,838	$125,671	$171,631
- Improvements	-$0	-$0	-$0	-$0	-$0	-$0	-$0
= Cash Flow	$69,121	$71,345	$73,639	$78,445	$91,838	$125,671	$171,631
Cap Rate (Purchase Price)	8.7%	8.9%	9.2%	9.8%	11.5%	15.7%	21.5%
Cap Rate (Market Value)	8.2%	8.0%	7.8%	7.5%	6.7%	5.4%	4.3%
Cash on Cash Return	8.5%	8.8%	9.0%	9.6%	11.3%	15.4%	21.1%
Return on Equity	8.2%	8.0%	7.8%	7.5%	6.7%	5.4%	4.3%
Loan Analysis	Year 1	Year 2	Year 3	Year 5	Year 10	Year 20	Year 30
Market Value	$842,945	$889,307	$938,219	$1,044,261	$1,364,807	$2,331,288	$3,982,177
- Loan Balance	-$0	-$0	-$0	-$0	-$0	-$0	-$0
= Equity	$842,945	$889,307	$938,219	$1,044,261	$1,364,807	$2,331,288	$3,982,177
Potential Cash-Out Refi	$632,209	$666,980	$703,664	$783,196	$1,023,606	$1,748,466	$2,986,633
Sale Analysis	Year 1	Year 2	Year 3	Year 5	Year 10	Year 20	Year 30
Equity	$842,945	$889,307	$938,219	$1,044,261	$1,364,807	$2,331,288	$3,982,177
- Selling Costs	-$50,577	-$53,358	-$56,293	-$62,656	-$81,888	-$139,877	-$238,931
= Proceeds After Sale	$792,368	$835,949	$881,926	$981,605	$1,282,919	$2,191,411	$3,743,246
+ Cumulative Cash Flow	$69,121	$140,466	$214,104	$368,553	$800,132	$1,896,038	$3,393,948
- Initial Cash Invested	-$814,980	-$814,980	-$814,980	-$814,980	-$814,980	-$814,980	-$814,980
= Net Profit	$46,509	$161,434	$281,050	$535,179	$1,268,071	$3,272,469	$6,322,214
Internal Rate of Return	5.7%	9.8%	11.2%	12.2%	12.7%	12.6%	12.3%
Return on Investment	6%	20%	34%	66%	156%	402%	776%

Buy and Hold Projection

Purchase Info Purchase Price $799,000 + Buying Costs $15,980 + Initial Improvements $0 = Initial Cash Invested $814,980 Square Feet 9,248 Cost per Square Foot $86 Monthly Rent per Square Foot $0.87	Income Monthly Annual Gross Rent $8,026 $96,312 Vacancy Loss -$401 -$4,816 Laundry $0 $0 Operating Income $7,625 $91,496
Expenses (% of Income) Monthly Annual Insurance (4%) -$323 -$3,877 Management Fees (8%) -$610 -$7,320 Taxes (5%) -$398 -$4,771 Misc. (7%) -$534 -$6,408 Operating Expenses (24%) -$1,865 -$22,376
Financial Metrics (Year 1) Annual Gross Rent Multiplier 8.3 Operating Expense Ratio 24.5% Cap Rate (Purchase Price) 8.7% Cash on Cash Return 8.5%
Net Performance Monthly Annual Net Operating Income $5,760 $69,121 - Year 1 Improvements -$0 -$0 = Cash Flow $5,760 $69,121
Assumptions Appreciation Rate 5.5% Vacancy Rate 5.0% Income Inflation Rate 3.0% Expense Inflation Rate 2.0% LTV for Refinance 75.0% Selling Costs $47,940

Purchase Analysis

Purchase Info
Square Feet	9,248
Purchase Price	$799,000
Initial Cash Invested	$814,980
Income Analysis	Monthly	Annual
Net Operating Income	$5,760	$69,121
Cash Flow	$5,760	$69,121
Financial Metrics
Cap Rate (Purchase Price)	8.7%
Cash on Cash Return (Year 1)	8.5%
Internal Rate of Return (Year 10)	12.7%
Sale Price (Year 10)	$1,364,807