High job growth and dynamics stimulating future job creation.
Low Vacancy Rates:The average vacancy rate must not be higher than 9% with an ideal vacancy of less than 7% .
Moderate Cap Rates:We seek markets with CAP rates slightly higher than average so that we can provide investor returns, whilst improving value, from day one.
Positive cash flow from rental income.
Appreciation:Investors own an equity share of the asset based on their investment. Through repositioning, we are able to force the appreciation of the asset by increasing the net operating income (NOI).
Amortization:Rental income pays down the debt and builds equity in the property.
Depreciation:Investors receive the taxation benefits of deprecation.
Investor Yield Projection | |
---|---|
Total Equity Multiple | 2.3x |
Average Annual Return# | 9.58% |
Internal Rate of Return (IRR) | 20.14% |
Sample $100,000 Investment | ||||||
---|---|---|---|---|---|---|
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Investor Annual Percent Return | 8.7% | 10.1% | 10.9% | 8.7% | 188.5% | |
Investor Return on Investment | ($100,000) | $8,697 | $10,138 | $10,854 | $8,713 | $188,493 |
Investment Snapshot | |
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Purchase Price | $26,600,000 |
Renovations/Upgrade | $3,200,000 |
Closing Costs | $1,475,412 |
Total Capitalization | $31,275,412 |
Year Built | 1981 |
Current Occupancy 1 | 97.2% |
Sample $100,000 Investment | ||||||
---|---|---|---|---|---|---|
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Investor Annual Percent Return | 8.3% | 11.5% | 9.5% | 10.3% | 202.7% | |
Investor Return on Investment | ($100,000) | $8,334 | $11,513 | $9,473 | $10,268 | $202,737 |
Investment Snapshot | |
---|---|
Purchase Price | $5,900,000 |
Capital Improvement Budget | $892,875 |
Closing Costs | $465,655 |
Total Capitalization | $7,260,344 |
Units | 155 |
Year Built | 1982 |
Current Occupancy 1 | 95.3% |
Sample $100,000 Investment | ||||||
---|---|---|---|---|---|---|
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Investor Annual Percent Return | 8.0% | 63.6% | 12.1% | 13.3% | 130.3% | |
Investor Return on Investment | ($100,000) | $8,046 | $63.594 | $12,124 | $13,265 | $130,229 |
Investment Snapshot | |
---|---|
Purchase Price | $14,100,000 |
Renovations/Upgrade | $1,752,800 |
Closing Costs | $641,056 |
Total Capitalization | $16,493,856 |
Year Built | 1982 |
Current Occupancy 1 | 95.3% |
Sample $100,000 Investment | ||||||
---|---|---|---|---|---|---|
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Investor Annual Percent Return | 8.9% | 13.3% | 14.4% | 15.6% | 129.2% | |
Investor Return on Investment | ($100,000) | $8,899 | $13,280 | $14,400 | $15,630 | $189,200 |