Multifamily Revenues_Method 1_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% Effective Rent / Month $1,220 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 45,238 Other Income 131,909 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% 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 0.0% 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%
Model Acq Date 12/31/2020 Size 150 T-3 T-12 Units Unrenovated Units Renovated Unrenovated Effective Rent Renovated Effective Rent Rent Growth INCOME 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 Effective Rent / Month $1,220 $1,204 Physical Occupancy 88% 88% Utility Reimbursement 45,238 44,641 Other Revenue 131,909 130,169 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 $1,220 $1,220 $1,220 $1,220 $1,220 $1,220 $1,345 $1,345 $1,345 $1,345 $1,345 $1,345 – – – – – 182,998 182,998 184,561 186,123 187,686 (18,300) (18,300) (18,456) (18,612) (18,769) (1,296) (1,296) (1,307) (1,318) (1,329) (1,321) (1,321) (1,332) (1,343) (1,354) $162,081 $162,081 $163,465 $164,849 $166,233 $1,220 $1,220 $1,230 $1,241 $1,251 90% 90% 90% 90% 90% 3,770 3,770 3,770 3,770 3,770 10,992 10,992 10,992 10,992 10,992 $14,762 $14,762 $14,762 $14,762 $14,762 $176,844 $176,844 $178,228 $179,611 $180,995
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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 $1,220 $1,220 $1,220 $1,220 $1,220 $1,220 $1,220 $1,345 $1,345 $1,345 $1,345 $1,345 $1,345 $1,345 – – – – – – – 189,248 190,811 192,373 193,936 195,498 197,061 198,623 (18,925) (19,081) (19,237) (19,394) (19,550) (19,706) (19,862) (1,340) (1,352) (1,363) (1,374) (1,385) (1,396) (1,407) (1,366) (1,377) (1,388) (1,400) (1,411) (1,422) (1,433) $167,617 $169,001 $170,385 $171,769 $173,153 $174,537 $175,920 $1,262 $1,272 $1,282 $1,293 $1,303 $1,314 $1,324 90% 90% 90% 90% 90% 90% 90% 3,770 3,770 3,770 3,770 3,770 3,770 3,770 10,992 10,992 10,992 10,992 10,992 10,992 10,992 $14,762 $14,762 $14,762 $14,762 $14,762 $14,762 $14,762 $182,379 $183,763 $185,147 $186,531 $187,915 $189,299 $190,683
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 $1,222 $1,224 $1,226 $1,228 $1,230 $1,232 $1,234 $1,347 $1,349 $1,351 $1,353 $1,355 $1,357 $1,359 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 200,491 202,359 202,665 202,971 203,278 203,586 203,894 (18,044) (18,212) (18,240) (18,267) (18,295) (18,323) (18,350) (1,420) (1,433) (1,436) (1,438) (1,440) (1,442) (1,444) (1,447) (1,460) (1,463) (1,465) (1,467) (1,469) (1,471) $179,579 $181,253 $181,527 $181,801 $182,076 $182,352 $182,628 $1,337 $1,349 $1,351 $1,353 $1,355 $1,357 $1,359 91% 91% 91% 91% 91% 91% 91% 3,883 3,883 3,883 3,883 3,883 3,883 3,883 11,322 11,322 11,322 11,322 11,322 11,322 11,322 $15,205 $15,205 $15,205 $15,205 $15,205 $15,205 $15,205 $194,785 $196,458 $196,732 $197,006 $197,281 $197,557 $197,833
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 $1,236 $1,238 $1,240 $1,243 $1,245 $1,361 $1,363 $1,365 $1,368 $1,370 0.2% 0.2% 0.2% 0.2% 0.2% 204,202 204,511 204,821 205,131 205,442 (18,378) (18,406) (18,434) (18,462) (18,490) (1,446) (1,449) (1,451) (1,453) (1,455) (1,474) (1,476) (1,478) (1,480) (1,483) $182,904 $183,181 $183,458 $183,736 $184,014 $1,361 $1,363 $1,365 $1,368 $1,370 91% 91% 91% 91% 91% 3,883 3,883 3,883 3,883 3,883 11,322 11,322 11,322 11,322 11,322 $15,205 $15,205 $15,205 $15,205 $15,205 $198,109 $198,386 $198,663 $198,941 $199,219
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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 2 LOSS TO VACANCY -19,070.96 -19,460.16 1 LOSS TO LEASE -6,490.96 -6,623.43 1 UPFRONT CONCESSIONS -79.65 -81.27 4 BAD DEBT -1,149.71 -1,173.17 3 MODEL / OFFICE RENT -1,128.43 -1,151.46 4 RECOVERY OF BAD DEBT 0.00 0.00 TOTAL RENTAL INCOME: 137,961.01 140,776.54 OTHER INCOME: 6 LATE FEES 960.03 979.63 6 APPLICATION FEES 312.90 319.29 6 MONTH TO MONTH FEES 279.90 285.62 6 SHORT TERM LEASE FEE 653.96 667.31 6 UTILITY PENALTY FEE 0.00 0.00 6 DEPOSIT FORFEITURE 184.90 188.67 6 ADMIN FEE 519.13 529.72 6 NON REFUNDABLE PET DEP 0.00 0.00 6 NSF CHECK FEES 28.45 29.03 6 PARKING & STORAGE FEES 469.92 479.51 6 CABLE 0.00 0.00 6 RENTERS INSURANCE 0.00 0.00 6 PET FEES 1,213.77 1,238.54 6 PEST CONTROL REIMB 314.52 320.94 6 DAMAGES PAID BY TENANT 530.74 541.58 6 TERMINATION FEES 3,453.46 3,523.94 6 LEGAL & COLLECTION REV 92.45 94.33 6 VACANT COST RECOVERY -0.30 -0.30 5 RUBS - TRASH 1,059.88 1,081.51 5 RUBS - WATER 2,221.96 2,267.30 6 CLEANING FEES 35.56 36.28 6 MISCELLANEOUS INCOME 359.66 367.00 6 INTEREST INCOME 160.50 163.78
TOTAL OTHER INCOME 12,851.38 13,113.65 TOTAL INCOME 150,812.38 153,890.19 INCOME 1 Net Effective Rent 159,310 162,561 2 Vacancy Loss (19,071) (19,460) 3 Non-Revenue Units (1,128) (1,151) 4 Bad Debt (1,150) (1,173) Total Rental Income $137,961 $140,777 5 Utility Reimbursement 3,282 3,349 6 Other Revenue 9,570 9,765 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
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13,507.06 14,047.34 14,749.71 15,487.19 15,332.32 15,638.97 158,506.89 164,847.17 173,089.53 181,744.00 179,926.56 183,525.09 167,438 174,136 182,842 191,985 190,065 193,866 (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 3,449 3,587 3,767 3,955 3,915 3,994 10,058 10,460 10,983 11,532 11,417 11,645 $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
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 14,409.87 185,360.34 179,799.53 170,809.56 169,101.46 195,805 189,931 180,434 178,630 (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 4,034 3,913 3,717 3,680 11,762 11,409 10,838 10,730 $15,795 $15,321 $14,555 $14,410 $185,360 $179,800 $170,810 $169,101 OK OK OK OK
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