All Forum Posts by: Steven L.

When a Gross Rent Multiplier (GRM) is provided, isn't it from the actual income collected (less vacancies) and therefore the Gross Operating Income (GOI)? This was my assumption, so my numbers drive off of GOI. I should have left GSI blank.

Expenses were calculated from seller's numbers. I didn't use the 50% rule.

My spread sheet is just a model. One next step, if the deal were interesting, would be to get 12-month line item actuals (I think)?

0 Votes

Hi Nick -

http://www.loopnet.com/Listing/20410233/5215-58th-...

ONE	TWO
SELLERS NUMBERS	THESE NUMBERS ARE TO HIT DEAL BENCHMARKS
Market or Appraised Value	$1,495,000	Market or Appraised Value	$1,495,000
Purchase Price	$1,495,000	Purchase Price	$1,455,000
Initial Equity	$-	Initial Equity	$40,000
Down Payment	25%	Down Payment	25%
Amount Financed	$1,121,250	75%	Amount Financed	$1,091,250	75%
Down Payment Amount	$373,750	25%	Down Payment Amount	$363,750	25%
Closing Costs & Fees	$8,000	Closing Costs & Fees	$8,000
Total Cash Investment	$381,750	Total Cash Investment	$371,750
Interest Rate (30 yr Fixed)	5.75%	Interest Rate (30 yr Fixed)	5.75%
Debt Service (P&I) Monthly	$6,543.31	Debt Service (P&I) Monthly	$6,368.24
Debt Service (P&I) Yearly	$78,520	Debt Service (P&I) Yearly	$76,419
INCOME	INCOME
Vacancy Rate (% of GSI)	0%	Vacancy Rate (% of GSI)	0%
Gross Scheduled Income (GSI)	$207,639	3	Gross Scheduled Income (GSI)	$207,639
Less Vacancy Amount	$-	Less Vacancy Amount	$-
Other Income 1	$-	Other Income 1	$-
Other Income 2	$-	Other Income 2	$-
Gross Operating Income (GOI)	$207,639	Gross Operating Income (GOI)	$207,639
EXPENSES	EXPENSES
50% Rule	$103,819	50% Rule
(Gross rents from GRM) - NOI): Calculated	$91,029	4	GRM - NOI: Calculated
Total Operating Expenses	$(91,029)	Total Operating Expenses	$(91,029)
Tot. Op. Exp. / GOI	44%	Tot. Op. Exp. / GOI	44%
Net Operating Income (NOI)	$116,610	2	Net Operating Income (NOI)	$116,610
Less Debt Service	$(78,520)	Less Debt Service	$(76,419)
Before-Tax Cash Flow (BT-CF)	$38,090	Before-Tax Cash Flow (BT-CF)	$40,191
Before-Tax Cash Flow Mntly	$3,174	Before-Tax Cash Flow Mntly	$3,349
Cash-On-Cash ROI	9.98%	Cash-On-Cash ROI	10.81%
Cap Rate	7.80%	1	Cap Rate	8.01%
Gross Rent Multiplier	7.20	Gross Rent Multiplier	7.01
Computed Sales Price	$1,495,000	Computed Sales Price	$1,455,000
Computed NOI	$116,610	Computed NOI	$116,610
Other	Other
Number of Doors	24	Number of Doors	24
Price Per Door	$62,292	Price Per Door	$60,625
Yrly Revenue Per Door	$8,652	Yrly Revenue Per Door	$8,652
Ylry Expenses Per Door	$(7,065)	Ylry Expenses Per Door	$(6,977)
Net Per Door	$1,587	Cash Flow per Door	$1,675
Break-Even Occupancy %	81.66%	Break-Even Occupancy %	80.64%
Debt Coverage Ratio	1.49	Debt Coverage Ratio	1.53
Loan to Value	75.00%	Loan to Value	72.99%

0 Votes

Hi - I started in earnest July 4th Weekend. I have a $1.5M deal I would like to walk through with someone who is experienced.

It is a 24 unit Apartment in WI. From the CAP Rate & Gross Rent Multiplier and other LoopNet Info, I have a calculated: Gross Operating Income, Expenses, NOI, Cash on Cash Return, Cash Flow, $/Door, Case Flow/Door, BE Occupancy %, Debt Coverage Ratio, Loan to Value, ect.

I have a spreadsheet that runs the numbers on what the seller is asking along with the ability to run scenario numbers to hit sample benchmarks.

I don't think this conversation should be more than 20mins. I am happy to send the LoopNet listing and my calculations.

Would anyone be willing to run through this with me?

Thanks,

Steve

0 Votes

All Forum Posts by: Steven L.

Steven L. has started 3 posts and replied 15 times.

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