Multifamily Revenues_Method 2_Solution

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Inputs Property Overview Name Multifamily Property Type Multifamily Location Boston, MA Units 150 Year Built 2015 Acquisition Assumptions Acquisition Date 12/31/2020 Hold Period Purchase Price Acquisition Closing Costs Drivers In-place Income (T-3) Assumption Total Occupancy 88% Market Rent / Month $1,270 Effective Rent / Month $1,220 Gross Potential Rent $2,286,549 Loss to Lease 3.9% (89,473) Concessions 0.0% (1,098) Net Effective Rent $2,195,977 Vacancy Loss (262,880)
Non-Revenue Units 0.7% (15,555) Bad Debt 0.7% (15,848) Total Rental Income $1,901,695 Utility Reimbursement 49,573 Other Income 127,574 Total Income $2,078,842 Revenue Assumptions Rent Year Occupancy Growth 1 90% 0.0% 2 91% 2.0% 3 92% 3.0% 4 93% 3.0% 5 93% 3.0% 6 93% 3.0% 7 93% 3.0% 8 93% 3.0% 9 93% 3.0% 10 93% 3.0% 11 93% 3.0% Capital Expenditures Schedule Start End Duration Defensive Offensive 3/31/2021 3/31/2022 12 Months Unit Renovations Units Renovated – – Remaining Units 100% 150 Units Renovated / Month 13 Cost / Unit $6,000 Rent Premium $125 ROI 25.0%
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Other Revenue Growth – 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Unit Mix Type Size Count % of Total Studio 500 15 10.0% 1 BR, 1 BA 750 80 53.3% 2 BR, 2 BA 1,250 50 33.3% 3 BR, 2 BA 1,500 5 3.3% Total 917 150 100%
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Model Acq Date 12/31/2020 Size 150 T-3 T-12 Units Unrenovated Units Renovated Unrenovated Market Rent Renovated Market Rent Rent Growth INCOME Gross Potential Rent 2,286,549 2,256,378 Loss to Lease (89,473) (88,293) Concessions (1,098) (1,083) Net Effective Rent 2,195,977 2,167,002 Vacancy Loss (262,880) (259,411) Non-Revenue Units (15,555) (15,349) Bad Debt (15,848) (15,639) Total Rental Income $1,901,695 $1,876,603 Market Rent / Month $1,270 $1,254 Effective Rent / Month $1,220 $1,204 Physical Occupancy 88% 88% Utility Reimbursement 49,573 48,919 Other Revenue 127,574 125,891 Total Other Revenue $177,147 $174,810 TOTAL INCOME $2,078,842 $2,051,413
Year 0 Year 1 Year 1 Year 1 Year 1 Year 1 Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 12/31/2020 1/31/2021 2/28/2021 3/31/2021 4/30/2021 5/31/2021 150 150 150 138 125 113 – – – 13 25 38 $1,270 $1,270 $1,270 $1,270 $1,270 $1,270 $1,395 $1,395 $1,395 $1,395 $1,395 $1,395 – – – – – 190,546 190,546 192,108 193,671 195,233 (7,456) (7,456) (7,517) (7,578) (7,640) (91) (91) (92) (93) (94) 182,998 182,998 184,499 185,999 187,500 (18,300) (18,300) (18,450) (18,600) (18,750) (1,296) (1,296) (1,307) (1,317) (1,328) (1,321) (1,321) (1,331) (1,342) (1,353) $162,081 $162,081 $163,411 $164,740 $166,069 $1,270 $1,270 $1,281 $1,291 $1,302 $1,220 $1,220 $1,230 $1,240 $1,250 90% 90% 90% 90% 90% 4,131 4,131 4,131 4,131 4,131 10,631 10,631 10,631 10,631 10,631 $14,762 $14,762 $14,762 $14,762 $14,762 $176,844 $176,844 $178,173 $179,502 $180,831
Year 1 Year 1 Year 1 Year 1 Year 1 Year 1 Year 1 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 6/30/2021 7/31/2021 8/31/2021 9/30/2021 10/31/2021 11/30/2021 12/31/2021 100 88 75 63 50 38 25 50 63 75 88 100 113 125 $1,270 $1,270 $1,270 $1,270 $1,270 $1,270 $1,270 $1,395 $1,395 $1,395 $1,395 $1,395 $1,395 $1,395 – – – – – – – 196,796 198,358 199,921 201,483 203,046 204,608 206,171 (7,701) (7,762) (7,823) (7,884) (7,945) (8,006) (8,068) (94) (95) (96) (97) (97) (98) (99) 189,001 190,501 192,002 193,502 195,003 196,504 198,004 (18,900) (19,050) (19,200) (19,350) (19,500) (19,650) (19,800) (1,339) (1,349) (1,360) (1,371) (1,381) (1,392) (1,403) (1,364) (1,375) (1,386) (1,396) (1,407) (1,418) (1,429) $167,398 $168,727 $170,056 $171,385 $172,714 $174,043 $175,372 $1,312 $1,322 $1,333 $1,343 $1,354 $1,364 $1,374 $1,260 $1,270 $1,280 $1,290 $1,300 $1,310 $1,320 90% 90% 90% 90% 90% 90% 90% 4,131 4,131 4,131 4,131 4,131 4,131 4,131 10,631 10,631 10,631 10,631 10,631 10,631 10,631 $14,762 $14,762 $14,762 $14,762 $14,762 $14,762 $14,762 $182,160 $183,489 $184,818 $186,147 $187,476 $188,805 $190,135
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Year 2 Year 2 Year 2 Year 2 Year 2 Year 2 Year 2 Month 13 Month 14 Month 15 Month 16 Month 17 Month 18 Month 19 1/31/2022 2/28/2022 3/31/2022 4/30/2022 5/31/2022 6/30/2022 7/31/2022 13 – – – – – – 138 150 150 150 150 150 150 $1,272 $1,275 $1,277 $1,279 $1,281 $1,283 $1,285 $1,397 $1,400 $1,402 $1,404 $1,406 $1,408 $1,410 0.2% 0.2% 0.2% 0.2% 0.17% 0.17% 0.17% 208,051 209,931 210,250 210,569 210,889 211,209 211,530 (8,141) (8,215) (8,227) (8,240) (8,252) (8,265) (8,277) (100) (101) (101) (101) (101) (101) (102) 199,810 201,616 201,922 202,228 202,535 202,843 203,151 (17,983) (18,145) (18,173) (18,201) (18,228) (18,256) (18,284) (1,415) (1,428) (1,430) (1,432) (1,435) (1,437) (1,439) (1,442) (1,455) (1,457) (1,459) (1,462) (1,464) (1,466) $178,970 $180,587 $180,861 $181,136 $181,411 $181,687 $181,962 $1,387 $1,400 $1,402 $1,404 $1,406 $1,408 $1,410 $1,332 $1,344 $1,346 $1,348 $1,350 $1,352 $1,354 91% 91% 91% 91% 91% 91% 91% 4,255 4,255 4,255 4,255 4,255 4,255 4,255 10,950 10,950 10,950 10,950 10,950 10,950 10,950 $15,205 $15,205 $15,205 $15,205 $15,205 $15,205 $15,205 $194,175 $195,793 $196,067 $196,341 $196,616 $196,892 $197,168
Year 2 Year 2 Year 2 Year 2 Year 2 Month 20 Month 21 Month 22 Month 23 Month 24 8/31/2022 9/30/2022 10/31/2022 11/30/2022 12/31/2022 – – – – – 150 150 150 150 150 $1,287 $1,289 $1,292 $1,294 $1,296 $1,412 $1,414 $1,417 $1,419 $1,421 0.17% 0.17% 0.17% 0.17% 0.17% 211,851 212,173 212,495 212,818 213,142 (8,290) (8,302) (8,315) (8,328) (8,340) (102) (102) (102) (102) (102) 203,460 203,769 204,078 204,388 204,699 (18,311) (18,339) (18,367) (18,395) (18,423) (1,441) (1,443) (1,446) (1,448) (1,450) (1,468) (1,471) (1,473) (1,475) (1,477) $182,239 $182,516 $182,793 $183,071 $183,349 $1,412 $1,414 $1,417 $1,419 $1,421 $1,356 $1,358 $1,361 $1,363 $1,365 91% 91% 91% 91% 91% 4,255 4,255 4,255 4,255 4,255 10,950 10,950 10,950 10,950 10,950 $15,205 $15,205 $15,205 $15,205 $15,205 $197,444 $197,721 $197,998 $198,276 $198,554
Historical Financials Month Ending Month Ending 1/31/2019 2/28/2019 Actual Actual INCOME: RENTAL INCOME: 1 GROSS POTENTIAL 165,880.72 169,266.04 4 LOSS TO VACANCY -19,070.96 -19,460.16 2 LOSS TO LEASE -6,490.96 -6,623.43 3 UPFRONT CONCESSIONS -79.65 -81.27 6 BAD DEBT -1,149.71 -1,173.17 5 MODEL / OFFICE RENT -1,128.43 -1,151.46 6 RECOVERY OF BAD DEBT 0.00 0.00 TOTAL RENTAL INCOME: 137,961.01 140,776.54 OTHER INCOME: 8 LATE FEES 960.03 979.63 8 APPLICATION FEES 312.90 319.29 8 MONTH TO MONTH FEES 279.90 285.62 8 SHORT TERM LEASE FEE 653.96 667.31 8 UTILITY PENALTY FEE 0.00 0.00 8 DEPOSIT FORFEITURE 184.90 188.67 8 ADMIN FEE 519.13 529.72 8 NON REFUNDABLE PET DEP 0.00 0.00 8 NSF CHECK FEES 28.45 29.03 8 PARKING & STORAGE FEES 469.92 479.51 8 CABLE 0.00 0.00 8 RENTERS INSURANCE 0.00 0.00 8 PET FEES 1,213.77 1,238.54 7 PEST CONTROL REIMB 314.52 320.94 8 DAMAGES PAID BY TENANT 530.74 541.58 8 TERMINATION FEES 3,453.46 3,523.94 8 LEGAL & COLLECTION REV 92.45 94.33 8 VACANT COST RECOVERY -0.30 -0.30 7 RUBS - TRASH 1,059.88 1,081.51 7 RUBS - WATER 2,221.96 2,267.30 8 CLEANING FEES 35.56 36.28 8 MISCELLANEOUS INCOME 359.66 367.00 8 INTEREST INCOME 160.50 163.78
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TOTAL OTHER INCOME 12,851.38 13,113.65 TOTAL INCOME 150,812.38 153,890.19 INCOME 1 Gross Potential Rent 165,881 169,266 2 Loss to Lease (6,491) (6,623) 3 Concessions (80) (81) Net Effective Rent 159,310 162,561 4 Vacancy Loss (19,071) (19,460) 5 Non-Revenue Units (1,128) (1,151) 6 Bad Debt (1,150) (1,173) Total Rental Income $137,961 $140,777 7 Utility Reimbursement 3,596 3,670 8 Other Revenue 9,255 9,444 Total Other Revenue $12,851 $13,114 TOTAL INCOME $150,812 $153,890 Check Ok Ok
Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending 3/31/2019 4/30/2019 5/31/2019 6/30/2019 7/31/2019 8/31/2019 Actual Actual Actual Actual Actual Actual 174,344.02 181,317.78 190,383.67 199,902.85 197,903.82 201,861.90 -20,043.97 -20,845.73 -21,888.01 -22,982.41 -22,752.59 -23,207.64 -6,822.14 -7,095.02 -7,449.77 -7,822.26 -7,744.04 -7,898.92 -83.71 -87.06 -91.41 -95.98 -95.02 -96.92 -1,208.37 -1,256.70 -1,319.54 -1,385.51 -1,371.66 -1,399.09 -1,186.00 -1,233.44 -1,295.12 -1,359.87 -1,346.27 -1,373.20 0.00 0.00 0.00 0.00 0.00 0.00 144,999.83 150,799.83 158,339.82 166,256.81 164,594.24 167,886.13 1,009.01 1,049.38 1,101.84 1,156.94 1,145.37 1,168.27 328.86 342.02 359.12 377.08 373.30 380.77 294.18 305.95 321.25 337.31 333.94 340.62 687.33 714.82 750.56 788.09 780.21 795.81 0.00 0.00 0.00 0.00 0.00 0.00 194.33 202.10 212.21 222.82 220.59 225.00 545.62 567.44 595.81 625.60 619.35 631.73 0.00 0.00 0.00 0.00 0.00 0.00 29.90 31.09 32.65 34.28 33.94 34.62 493.89 513.65 539.33 566.30 560.64 571.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,275.69 1,326.72 1,393.06 1,462.71 1,448.08 1,477.05 330.57 343.79 360.98 379.03 375.24 382.74 557.82 580.14 609.14 639.60 633.20 645.87 3,629.66 3,774.84 3,963.58 4,161.76 4,120.15 4,202.55 97.16 101.05 106.10 111.41 110.29 112.50 -0.31 -0.32 -0.34 -0.36 -0.35 -0.36 1,113.95 1,158.51 1,216.44 1,277.26 1,264.49 1,289.77 2,335.32 2,428.73 2,550.17 2,677.68 2,650.90 2,703.92 37.37 38.87 40.81 42.85 42.42 43.27 378.01 393.13 412.78 433.42 429.09 437.67 168.69 175.44 184.21 193.42 191.49 195.32
13,507.06 14,047.34 14,749.71 15,487.19 15,332.32 15,638.97 158,506.89 164,847.17 173,089.53 181,744.00 179,926.56 183,525.09 174,344 181,318 190,384 199,903 197,904 201,862 (6,822) (7,095) (7,450) (7,822) (7,744) (7,899) (84) (87) (91) (96) (95) (97) 167,438 174,136 182,842 191,985 190,065 193,866 (20,044) (20,846) (21,888) (22,982) (22,753) (23,208) (1,186) (1,233) (1,295) (1,360) (1,346) (1,373) (1,208) (1,257) (1,320) (1,386) (1,372) (1,399) $145,000 $150,800 $158,340 $166,257 $164,594 $167,886 3,780 3,931 4,128 4,334 4,291 4,376 9,727 10,116 10,622 11,153 11,042 11,263 $13,507 $14,047 $14,750 $15,487 $15,332 $15,639 $158,507 $164,847 $173,090 $181,744 $179,927 $183,525 Ok Ok Ok Ok Ok Ok
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Month Ending Month Ending Month Ending Month Ending 9/30/2019 10/31/2019 11/30/2019 12/31/2019 Actual Actual Actual Actual 203,880.52 197,764.10 187,875.90 185,997.14 -23,439.72 -22,736.53 -21,599.70 -21,383.70 -7,977.91 -7,738.57 -7,351.64 -7,278.13 -97.89 -94.96 -90.21 -89.31 -1,413.08 -1,370.69 -1,302.15 -1,289.13 -1,386.93 -1,345.32 -1,278.06 -1,265.28 0.00 0.00 0.00 0.00 169,564.99 164,478.04 156,254.14 154,691.59 1,179.96 1,144.56 1,087.33 1,076.46 384.58 373.04 354.39 350.85 344.02 333.70 317.02 313.85 803.77 779.66 740.67 733.27 0.00 0.00 0.00 0.00 227.25 220.43 209.41 207.32 638.05 618.91 587.96 582.08 0.00 0.00 0.00 0.00 34.96 33.91 32.22 31.90 577.57 560.24 532.23 526.91 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,491.82 1,447.06 1,374.71 1,360.96 386.57 374.97 356.23 352.66 652.33 632.76 601.12 595.11 4,244.57 4,117.24 3,911.37 3,872.26 113.63 110.22 104.71 103.66 -0.36 -0.35 -0.34 -0.33 1,302.67 1,263.59 1,200.41 1,188.41 2,730.96 2,649.03 2,516.58 2,491.41 43.70 42.39 40.27 39.87 442.05 428.78 407.34 403.27 197.27 191.35 181.79 179.97
15,795.36 15,321.50 14,555.42 14,409.87 185,360.34 179,799.53 170,809.56 169,101.46 203,881 197,764 187,876 185,997 (7,978) (7,739) (7,352) (7,278) (98) (95) (90) (89) 195,805 189,931 180,434 178,630 (23,440) (22,737) (21,600) (21,384) (1,387) (1,345) (1,278) (1,265) (1,413) (1,371) (1,302) (1,289) $169,565 $164,478 $156,254 $154,692 4,420 4,288 4,073 4,032 11,375 11,034 10,482 10,377 $15,795 $15,321 $14,555 $14,410 $185,360 $179,800 $170,810 $169,101 Ok Ok Ok Ok
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