Analyze this deal, critque away!!

[Aaron P.]

Table of Contents

The Property 2

Financial Overview 4

Financial Statements 5

Our Methods 9

MLS® Number: SK792508

List Price - $299,900

This 4-plex was built in 1970. It boasts 3 2-bedroom units and 1 1-bedroom unit, 2 brand new oversized water heaters, 2 water softeners, a boiler and ample storage space for tenant belongings. Parking for each unit at the back of the building.

Each unit has granite/quartz counter tops, solid wood cabinetry, coil-top stove, 30” wide refrigerator, radiator heating controlled by each unit, 12x12 ceramic tile in the basement units and hardwood floors in the upstairs units, U-shaped stairs at each side of the building for easy access to both floors. Tenants are treated to complimentary laundry facilities at no additional charge.

Wadena is a small town, with a population of 1,300. Founded in 1912, it is a quaint little town that places a big focus on community and farming. Wadena is located about a 2-hour drive east of Saskatoon and a 1.5-hour drive northwest of Yorkton. Wadena is home to a high school and an elementary school, giving the surrounding areas a place to get a full education.  

12%/YR

Symptom Estate financial plan for its investors is to offer a competitive rate of return (RoR). We offer 12% annual, compounded and accrued monthly, for 3 years.

Chart 1.1 – Total Investment Overview illustrates visually how much interest your investment will generate by comparison.

Chart 1.2 – Investment Growth 3YR Term displays your investment growth by year. The interest rate you earn not only grows upon your initial investment but upon the interest accrued as well.

Chart 1.3 – Monthly Interest shows how much interest is earned each month.

Income Statement (5 Yr projection) (CAD)

Income

Rent Year 1 Year 2 Year 3 Year 4 Year 5

Unit 1 $ 11,400.00 $ 11,400.00 $ 11,400.00 $ 11,856.00 $ 11,856.00

Unit 2 $ 10,200.00 $ 10,200.00 $ 10,200.00 $ 10,608.00 $ 10,608.00

Unit 3 $ 10,200.00 $ 10,200.00 $ 10,200.00 $ 10,608.00 $ 10,608.00

Unit 4 $ 10,200.00 $ 10,200.00 $ 10,200.00 $ 10,608.00 $ 10,608.00

Total Income $ 42,000.00 $ 42,000.00 $ 42,000.00 $ 43,680.00 $ 43,680.00

Expenses

Rental Ins. $ 2,071.00 $ 2,112.42 $ 2,154.67 $ 2,197.76 $ 2,241.72

Property Tax $ 2,682.00 $ 2,735.64 $ 2,790.35 $ 2,846.16 $ 2,903.08

Utilities $ 4,888.00 $ 4,985.76 $ 5,085.48 $ 5,187.18 $ 5,290.93

Total Expenses $ 9,641.00 $ 9,833.82 $ 10,030.50 $ 10,231.11 $ 10,435.73

Housing Cost

Investor Payout $2,800.02 $2,800.02 $2,800.02

Mortgage $ 18,350.40 $ 18,350.40 $ 18,350.40 $ 20,940.72 $ 20,940.72

CMHC Fees $ 734.02 $ 734.02 $ 734.02 $ 837.63 $ 837.63

Total Housing $21,884.43 $21,884.43 $21,884.43 $21,778.35 $21,778.35

Sub-Net Income $ 10,474.57 $ 10,281.75 $ 10,085.07 $ 11,670.54 $ 11,465.92

Safety Net

Vacancy Rate $2,100.00 $2,100.00 $2,100.00 $2,184.00 $2,184.00

Management $3,360.00 $3,360.00 $3,360.00 $3,494.40 $3,494.40

Cap Ex. $2,940.00 $2,940.00 $2,940.00 $3,057.60 $3,057.60

Maintenance $2,100.00 $2,100.00 $2,100.00 $2,184.00 $2,184.00

Total Safety Net $10,500.00 $10,500.00 $10,500.00 $10,920.00 $10,920.00

Net Income $ (25.43) $ (218.25) $ (414.93) $ 750.54 $ 545.92

Balance Sheet – 5 Yr Projection (CAD)

Year 1

Assets Liabilities

Cash $ 5,000.00 Notes Payable $ 279,086.03

Prepaid Ins $ 2,100.00 Interest $ 2,800.02

Capital $ 10,500.00 Taxes $ 1,800.00

Notes Payable II $ 20,000.00

Building $ 260,000.00

Land $ 30,000.00 Total Liabilities $ 303,686.05

Owner's Equity

Retained Earnings $ 10,500.00

Mortgage Equity $ 6,913.97

Equity $ (13,500.02)

Total Equity $3,913.95

Total Assets $ 307,600.00 Total Liabilities & Equity $ 307,600.00

Year 2

Assets Liabilities

Cash $ 5,000.00 Notes Payable $ 271,869.74

Prepaid Ins $ 2,112.42 Interest $ 2,800.02

Capital $ 21,000.00 Taxes $ 2,735.64

Notes Payable II $ 20,000.00

Building $ 260,000.00

Land $ 30,000.00 Total Liabilities $ 297,405.40

Owner's Equity

Retained Earnings $ 21,000.00

Mortgage Equity $ 14,130.26

Equity $ (14,423.24)

Total Equity $20,707.02

Total Assets $ 318,112.42 Total Liabilities & Equity $ 318,112.42

Year 3

Assets Liabilities

Cash $ 5,000.00 Notes Payable $ 264,370.28

Prepaid Ins $ 2,154.67 Interest $ 2,800.02

Capital $ 31,500.00 Taxes $ 2,790.35

Notes Payable II $ 20,000.00

Building $ 260,000.00

Land $ 30,000.00 Total Liabilities $ 289,960.65

Owner's Equity

Retained Earnings $ 31,500.00

Mortgage Equity $ 21,629.72

Equity $ (14,020.77)

Dividend $ (414.93)

Total Equity $38,694.02

Total Assets $ 328,654.67 Total Liabilities & Equity $ 328,654.67

Year 4

Assets Liabilities

Cash $ 5,000.00 Notes Payable $ 276,343.14

Prepaid Ins $ 2,197.76 Taxes $ 2,846.16

Capital $42,420.00

Building $ 260,000.00

Land $ 30,000.00 Total Liabilities $ 279,189.30

Owner's Equity

Retained Earnings $ 42,511.93

Mortgage Equity $ 9,656.86

Equity $ 8,167.75

Dividend $ 91.93

Total Equity $60,428.46

Total Assets $ 339,617.76 Total Liabilities & Equity $ 339,617.76

Year 5

Assets Liabilities

Cash $ 5,000.00 Notes Payable $ 266,277.70

Prepaid Ins $ 2,241.72 Taxes $ 2,903.08

Capital $53,340.00

Building $ 260,000.00

Land $ 30,000.00 Total Liabilities $ 269,180.78

Owner's Equity

Retained Earnings $53,340.00

Mortgage Equity $ 19,722.30

Equity $ 7,792.71

Dividend $ 545.92

Total Equity $81,400.93

Total Assets $ 350,581.72 Total Liabilities & Equity $ 350,581.72

Why Symptom Estate?

We take our investors and our tenants and put them in the foreground of our focus. We believe that every interaction should build us up together. We achieve this by giving our investors above average returns on their investments, secured by multiple strategies.

When our tenants approach us with a concern, we strive to first; listen to the individual, empathize with them, explore the reason why this is a concern for them and determine the direct cause of the issue. Once we understand the LEED, we can solve their concern appropriately.

We believe in providing state of the art payment methods, allowing the tenant to sign up for pre-authorized payments, using their mobile device or by using the rent payment kiosk located in the lobby. The kiosk will allow payment via credit or debit and the mobile device can be used to process their transaction similar to a bill payment.

How is my investment secured with Symptom Estate?

Each month a portion of the rent collected is used to pay the interest rate immediately. Noted as investor payout on the income statement. Once the bills are paid, various amounts of the rent are stored away in separate accounts, one for management fees (upkeep, service calls, etc), capital expenditures (savings for roof replacement, water heater/furnace, etc), maintenance (softer salt, preventative maintenance work) and vacancy rate (should a unit fall unrented, there is a reserve fund to pay that rent out accordingly).

We ensure that our investors are paid FIRST. No exceptions. Our investors are paid when the rent checks are in and when the re-finance goes through.

We place to refinance the entire purchase price once our 3 year term is up. A portion of the equity is used as a down payment for the new mortgage and the rest is used to pay the initial investment back. Anything left over at that point is reinvested into the company.

Symptom Estate is looking for $20,000 in investments. $15,000 is used for the down payment with the remaining $5,000 retained for any unforeseeable expenses, electronic rent payment system setup and inventory. As mentioned above, you are paid your interest to a savings account designated specifically for you on a monthly basis. Your investment is secured by monthly payments and the refinance at the end of the mortgage term.

Thank you for your time and consideration.