Peaceful Ln MHP-Discount Sale!€¦ · Peaceful Ln MHP-Discount Sale! 4029 Peaceful LN. Benny Spensieri 813-391-1545 [email protected] Property Description Asking Only $14,000/sp

Benny Spensieri

813-391-1545

[email protected]

Zephyrhills, Fl 33541

Well & Septic

Presented by

CRES Corp International, LLC1228 E 7th Ave

Bank Financing May Be Available to Qualified Purchaser

Underperforming MHP Being Sold Only $14,000/sp

Tampa, Fl 33605

57-Sp (Additional 1-acre lot permits 8 spaces also available) - 4.94-acres

Peaceful Ln MHP-Discount Sale!

4029 Peaceful LN

Benny Spensieri

813-391-1545

[email protected]

Property Description

Asking Only $14,000/sp

57-Sp (Seven Park Owned MH)

Underperforming MHP


4029 Peaceful LN


HIGHLIGHTS

0

1228 E 7th Ave

CRES Corp International, LLC

Tampa, Fl 33605

This Financial Projection Report is Based on a Purchase Price of$800,000). The MHP is currently 40% occupied. . Rentscollected average $235/space, that is welll below market,providing tremendous upside. Indicated expenses are actual andcurrent.

Financing is available to a Qualified Purchaser. Possiblefinancing option included in this Report:

50% LTV - 5.5% Interest Rate, 25-yr amortized, 5-yr Term

Peaceful Ln MHP consist of 57 individual lots and 15 MH/RVpark owned units with 4.94-acres combine.Seller also hasavailable an adjacent 1-acre lot zoned for 8 additiona spacesthat need to be built-out.

The Park is operating under par due to the Owner not havingsufficient time to manage the park. The occupancy should be aminimum 90% with base lot rents a minimum $325, or $800/MHunit, as verified by surrounding park in the immediate area.

This Report incorporates a steady increase in occupancy of upto 95% and a steady increase in lot rents up to $325/spacewithin three years of new ownership.

Report includes an additional capital improvement expense of$100K during Year 1 of operation.

This Report does not include the expected expense of gettingthe 8 additional spaces operational and getting the parkcompletely rent ready. Anticipated expenses are $ 60K spreadover the course of 3 years as indicated in this report.

Peaceful Ln MHP is located amongst very well established andupscale MHP's in a very beautiful area of Zephyrhills.



4029 Peaceful LN


Potential Rental Income 112,000$ 190,000$ 259,200$ 266,976$ 269,646$

Less: Vacancy & Credit Losses (5,600) (9,500) (12,960) (13,349) (13,482)

Less: Operating Expenses (46,333) (66,500) (90,720) (93,442) (96,245)

Net Operating Income (NOI) 60,067$ 114,000$ 155,520$ 160,186$ 159,919$

Less: Annual Debt Service (29,476) (29,476) (29,476) (29,476) (29,476)

Less: Funded Reserves and/or Improvements (100,000) - - - -

CASH FLOW Before Taxes (69,409)$ 84,524$ 126,044$ 130,709$ 130,442$

CASH FLOW After Taxes (69,409)$ 84,524$ 126,044$ 130,709$ 130,442$

Projected Sales Price 500,558$ 950,000$ 1,296,000$ 1,334,880$ 1,332,655$

Less: Selling Expenses (15,017) (28,500) (38,880) (40,046) (39,980)

Adjusted Projected Sales Price 485,542$ 921,500$ 1,257,120$ 1,294,834$ 1,292,676$

Less: Mortgage(s) Balance Payoff (392,332) (384,232) (375,675) (366,636) (357,086)

SALE PROCEEDS Before Taxes 93,209$ 537,268$ 881,445$ 928,198$ 935,589$

Cash Generated in Current Year (69,409)$ 84,524$ 126,044$ 130,709$ 130,442$

Cash Generated in Previous Years n/a (69,409) 15,115 141,158 271,868

Cash Generated from Property Sale 93,209 537,268 881,445 928,198 935,589

Original Initial Investment (400,000) (400,000) (400,000) (400,000) (400,000)

(376,200)$ 152,382$ 622,603$ 800,066$ 937,900$

Debt Coverage Ratio (DCR) 2.04 3.87 5.28 5.43 5.43

Loan-to-Value Ratio (LVR) 78.4% 40.4% 29.0% 27.5% 26.8%

Capitalization Rate Based on Cost 7.51% 14.25% 19.44% 20.02% 19.99%

Capitalization Rate Based on Resale Price 12.00% 12.00% 12.00% 12.00% 12.00%

Cash-on-Cash Return with Equity -94.05% 567.09% 87.52% 20.13% 14.85%

Cash-on-Cash Return - Before Taxes -17.35% 21.13% 31.51% 32.68% 32.61%

Financial Measurements

Year 4 Year 5

Cash Position

Rental Activity Analysis

Total Potential CASH Generated

Property Resale Analysis

Year 1 Year 2 Year 3

Benny Spensieri

813-391-1545

9/9/2019 2:53 PM © 1993 - 2011 Cash Flow Analyzer® RentalSoftware.com


4029 Peaceful LN


Potential Rental Income

Less: Vacancy & Credit Losses

Less: Operating Expenses

Net Operating Income (NOI)

Less: Annual Debt Service

Less: Funded Reserves and/or Improvements

CASH FLOW Before Taxes

CASH FLOW After Taxes

Projected Sales Price

Less: Selling Expenses

Adjusted Projected Sales Price

Less: Mortgage(s) Balance Payoff

SALE PROCEEDS Before Taxes

Cash Generated in Current Year

Cash Generated in Previous Years

Cash Generated from Property Sale

Original Initial Investment

Debt Coverage Ratio (DCR)

Loan-to-Value Ratio (LVR)

Capitalization Rate Based on Cost

Capitalization Rate Based on Resale Price

Cash-on-Cash Return with Equity

Cash-on-Cash Return - Before Taxes

Financial Measurements

Cash Position

Rental Activity Analysis

Total Potential CASH Generated

Property Resale Analysis

272,342$ 280,512$ 288,928$ 297,596$ 306,524$

(13,617) (14,026) (14,446) (14,880) (15,326)

(99,132) (102,106) (105,169) (108,324) (111,574)

159,593$ 164,381$ 169,312$ 174,391$ 179,623$

(29,476) (29,476) (29,476) (29,476) (29,476)

- - - - -

130,117$ 134,905$ 139,836$ 144,915$ 150,147$

130,117$ 134,905$ 139,836$ 144,915$ 150,147$

1,329,941$ 1,369,839$ 1,410,934$ 1,453,262$ 1,496,860$

(39,898) (41,095) (42,328) (43,598) (44,906)

1,290,043$ 1,328,744$ 1,368,606$ 1,409,665$ 1,451,954$

(346,998) (336,341) (325,082) (313,189) (300,624)

943,045$ 992,403$ 1,043,524$ 1,096,476$ 1,151,330$

130,117$ 134,905$ 139,836$ 144,915$ 150,147$

402,310 532,427 667,331 807,167 952,083

943,045 992,403 1,043,524 1,096,476 1,151,330

(400,000) (400,000) (400,000) (400,000) (400,000)

1,075,472$ 1,259,735$ 1,450,692$ 1,648,559$ 1,853,560$

5.41 5.58 5.74 5.92 6.09

26.1% 24.6% 23.0% 21.6% 20.1%

19.95% 20.55% 21.16% 21.80% 22.45%

12.00% 12.00% 12.00% 12.00% 12.00%

14.70% 19.54% 19.24% 18.96% 18.70%

32.53% 33.73% 34.96% 36.23% 37.54%

Year 8Year 6 Year 7 Year 10Year 9

Benny Spensieri

813-391-1545

9/9/2019 2:53 PM © 1993 - 2011 Cash Flow Analyzer® RentalSoftware.com


4029 Peaceful LN


Year 1 Sq Ft Year 2 Sq Ft Year 3 Sq Ft Year 4 Sq Ft Year 5 Sq Ft

Potential Rental Income 112,000$ 172.31 190,000$ 292.31 259,200$ 398.77 266,976$ 410.73 269,646$ 414.84

Less: Vacancy & Credit Losses (5,600) -8.62 (9,500) -14.62 (12,960) -19.94 (13,349) -20.54 (13,482) -20.74

106,400$ 163.69 180,500$ 277.69 246,240$ 378.83 253,627$ 390.20 256,163$ 394.10

106,400$ 163.69 180,500$ 277.69 246,240$ 378.83 253,627$ 390.20 256,163$ 394.10

46,333$ 71.28 66,500$ 102.31 90,720$ 139.57 93,442$ 143.76 96,245$ 148.07

60,067$ 92.41 114,000$ 175.38 155,520$ 239.26 160,186$ 246.44 159,919$ 246.03

Less: Annual Debt Service (29,476) -45.35 (29,476) -45.35 (29,476) -45.35 (29,476) -45.35 (29,476) -45.35

Less: Funded Reserves (100,000) -153.85 - 0.00 - 0.00 - 0.00 - 0.00

Cash Flow Before Taxes (69,409)$ -106.78 84,524$ 130.04 126,044$ 193.91 130,709$ 201.09 130,442$ 200.68


Total Operating Expenses

Operating Expenses

Effective Rental Income

813-391-1545

Gross Operating Income

Benny Spensieri

© 1993 - 2011 Cash Flow Analyzer® RentalSoftware.com


4029 Peaceful LN


Potential Rental Income

Less: Vacancy & Credit Losses

Less: Annual Debt Service

Less: Funded Reserves

Cash Flow Before Taxes


Total Operating Expenses

Operating Expenses

Effective Rental Income

Gross Operating Income

Year 6 Sq Ft Year 7 Sq Ft Year 8 Sq Ft Year 9 Sq Ft Year 10 Sq Ft

272,342$ 418.99 280,512$ 431.56 288,928$ 444.50 297,596$ 457.84 306,524$ 471.57

(13,617) -20.95 (14,026) -21.58 (14,446) -22.23 (14,880) -22.89 (15,326) -23.58

258,725$ 398.04 266,487$ 409.98 274,481$ 422.28 282,716$ 434.95 291,197$ 448.00

258,725$ 398.04 266,487$ 409.98 274,481$ 422.28 282,716$ 434.95 291,197$ 448.00

99,132$ 152.51 102,106$ 157.09 105,169$ 161.80 108,324$ 166.65 111,574$ 171.65

159,593$ 245.53 164,381$ 252.89 169,312$ 260.48 174,391$ 268.29 179,623$ 276.34

(29,476) -45.35 (29,476) -45.35 (29,476) -45.35 (29,476) -45.35 (29,476) -45.35

- 0.00 - 0.00 - 0.00 - 0.00 - 0.00

130,117$ 200.18 134,905$ 207.55 139,836$ 215.13 144,915$ 222.95 150,147$ 231.00

813-391-1545

Benny Spensieri



Benny Spensieri

813-391-1545

Time Net Operating Debt Cash Flow Incomes Cash Flow

Period Income Service Before Tax Taxes After Tax

Int Investment (400,000)$ (400,000)$

Year 1 60,067 (100,000) (29,476) (69,409) - (69,409)

Year 2 114,000 - (29,476) 84,524 - 84,524

Year 3 155,520 - (29,476) 126,044 - 126,044

Year 4 160,186 - (29,476) 130,709 - 130,709

Year 5 159,919 - (29,476) 130,442 - 130,442

Year 6 159,593 - (29,476) 130,117 - 130,117

Year 7 164,381 - (29,476) 134,905 - 134,905

Year 8 169,312 - (29,476) 139,836 - 139,836

Year 9 174,391 - (29,476) 144,915 - 144,915

Year 10 179,623 - (29,476) 150,147 - 150,147

4029 Peaceful LN


Reserves & MIP Payments

$(100,000)

$(50,000)

$

$50,000

$100,000

$150,000

$200,000

1 2 3 4 5 6 7 8 9 10

Cash Flow After Taxes

Cash Flow Before Taxes



4029 Peaceful LN

Zephyrhills, Fl 33541Benny Spensieri

813-391-1545

Time Initial Investment Cash Flow Cash on Cash Income Cash Flow Cash on Cash

Period Adj for Refinance Before Taxes Before Taxes Taxes After Taxes After Taxes

Year 1 400,000$ (69,409)$ -17.35% $ (69,409)$ -17.35%

Year 2 400,000 84,524 21.13% - 84,524 21.13%

Year 3 400,000 126,044 31.51% - 126,044 31.51%

Year 4 400,000 130,709 32.68% - 130,709 32.68%

Year 5 400,000 130,442 32.61% - 130,442 32.61%

Year 6 400,000 130,117 32.53% - 130,117 32.53%

Year 7 400,000 134,905 33.73% - 134,905 33.73%

Year 8 400,000 139,836 34.96% - 139,836 34.96%

Year 9 400,000 144,915 36.23% - 144,915 36.23%

Year 10 400,000 150,147 37.54% - 150,147 37.54%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

1 2 3 4 5 6 7 8 9 10

After Taxes

Before Taxes



4029 Peaceful LN


813-391-1545

Time Net Operating Cap Rate on Cost Resale

Period Income (NOI) 800,000$ Value

Year 1 60,067$ 7.51% 500,558$

Year 2 114,000 14.25% 950,000

Year 3 155,520 19.44% 1,296,000

Year 4 160,186 20.02% 1,334,880

Year 5 159,919 19.99% 1,332,655

Year 6 159,593 19.95% 1,329,941

Year 7 164,381 20.55% 1,369,839

Year 8 169,312 21.16% 1,410,934

Year 9 174,391 21.80% 1,453,262

Year 10 179,623 22.45% 1,496,860

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

1 2 3 4 5 6 7 8 9 10



4029 Peaceful LN


813-391-1545

Time Projected Adj Projected Refi Proceeds Mortgage(s) Sale Proceeds Income Taxes Sale Proceeds Property Year / Year

Period Resale Value Increase (if any) Balance Payoff Before Taxes From Sale After Taxes Equity Equity Increase

Year 1 485,542$ -39.31% $ (392,332)$ 93,209$ $ 93,209$ 93,209$ (306,791)$

Year 2 921,500 89.79% - (384,232) 537,268 - 537,268 537,268 444,059

Year 3 1,257,120 36.42% - (375,675) 881,445 - 881,445 881,445 344,177

Year 4 1,294,834 3.00% - (366,636) 928,198 - 928,198 928,198 46,753

Year 5 1,292,676 -0.17% - (357,086) 935,589 - 935,589 935,589 7,392

Year 6 1,290,043 -0.20% - (346,998) 943,045 - 943,045 943,045 7,455

Year 7 1,328,744 3.00% - (336,341) 992,403 - 992,403 992,403 49,359

Year 8 1,368,606 3.00% - (325,082) 1,043,524 - 1,043,524 1,043,524 51,121

Year 9 1,409,665 3.00% - (313,189) 1,096,476 - 1,096,476 1,096,476 52,952

Year 10 1,451,954 3.00% - (300,624) 1,151,330 - 1,151,330 1,151,330 54,854

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

1 2 3 4 5 6 7 8 9 10



4029 Peaceful LN


813-391-1545

Rental Annual Change Annual Change Trapped Return on Hold

Cash Flow in Equity in Net Worth Equity Equity (ROE) Sell

6.00% A B (A + B)

Year 1 (69,409) (306,791) (376,200) 400,000 -94.05% Hold

After Year Year 2 84,524 444,059 528,582 93,209 567.09% Hold

5 Year 3 126,044 344,177 470,221 537,268 87.52% Hold

Year 4 130,709 46,753 177,463 881,445 20.13% Hold

Year 5 130,442 7,392 137,834 928,198 14.85% Hold

Year 6 130,117 7,455 137,572 935,589 14.70% Hold

Year 7 134,905 49,359 184,263 943,045 19.54% Hold

Year 8 139,836 51,121 190,957 992,403 19.24% Hold

Year 9 144,915 52,952 197,867 1,043,524 18.96% Hold

Year 10 150,147 54,854 205,001 1,096,476 18.70% Hold

Required Return on

EquityTime Period

-100.00%

0.00%

100.00%

200.00%

300.00%

400.00%

500.00%

600.00%

1 2 3 4 5 6 7 8 9 10

Return on Equity (ROE)



4029 Peaceful LN

Zephyrhills, Fl 33541 Benny Spensieri

813-391-1545

Cash on Cash

Time Period Potential Operating, Debt, Occupancy BreakEven Max Vacancy BreakEven Max Vacancy

Requirement Rental Income Reserve Expenses Rate (Existing) Occupancy Rate BreakEven Rate Occupancy Rate BreakEven Rate

6.00% w/ Cash on Cash w/ Cash on Cash

Year 1 112,000 (175,809) 95.00% 156.97% -56.97% 178.40% -78.40%

Year 2 190,000 (95,976) 95.00% 50.51% 49.49% 63.15% 36.85%

Year 3 259,200 (120,196) 95.00% 46.37% 53.63% 55.63% 44.37%

Year 4 266,976 (122,918) 95.00% 46.04% 53.96% 55.03% 44.97%

Year 5 269,646 (125,721) 95.00% 46.62% 53.38% 55.53% 44.47%

Year 6 272,342 (128,608) 95.00% 47.22% 52.78% 56.04% 43.96%

Year 7 280,512 (131,582) 95.00% 46.91% 53.09% 55.46% 44.54%

Year 8 288,928 (134,646) 95.00% 46.60% 53.40% 54.91% 45.09%

Year 9 297,596 (137,801) 95.00% 46.30% 53.70% 54.37% 45.63%

Year 10 306,524 (141,050) 95.00% 46.02% 53.98% 53.85% 46.15%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

140.00%

160.00%

180.00%

1 2 3 4 5 6 7 8 9 10

BreakEven Occupancy

BreakEven Occupancy with Cash on Cash Requirment


Benny Spensieri

813-391-1545

[email protected]

Terms & Definitions

Tampa, Fl 33605

0

CRES Corp International, LLC1228 E 7th Ave

Net Operating Income (NOI) is a property’s gross rental income reduced by all expenses except for loan payments,income taxes, mortgage insurance premium (MIP) payments and sometimes funded reserves.

Debt Coverage Ratio (DCR) is a property’s net operating income divided by the amount of debt payments. Lendersuse this calculation to determine the remaining operating cash flow after the debt payments.

Loan-to-Value Ratio (LTV) is the outstanding debt divided by the value of the property. This ratio is used to determinethe amount of leverage and property equity. The debt balance can be the beginning or end-of-year balance. Theproperty value used can be the contract price or the fair market value at the end of the year.

Capitalization Rate (Cap Rate) is the net operating income (NOI) divided by either the property’s contract purchaseprice or its fair market value.

Cash-on-Cash Return is the net cash flow divided it by the initial investment (down payment). The calculation doesnot take into account the time value of money or change in the property’s equity.

Cash-on-Cash Return with Equity Build-up modifies the cash-on-cash return calculation by adding the property’snet change in equity for that year to the numerator and adding all previously generated equity to the denominator of thecash-on-cash return ratio. The calculation calculates the return on the property equity, i.e. the return on the cash thatis “tied up” in the property.

Net Present Value (NPV) converts future dollars into present-day dollars by discounting (reducing) the future cashflow of a property by a given rate or percentage. The initial investment (down payment) is subtracted from thediscounted dollars to derive the NPV. A positive NPV means that the property will generate a higher return than thegiven rate or percentage used to calculate the NPV amount.

Gross Rent Multiplier (GRM) is a property’s fair market value divided by its gross rental income.

Mortgage Insurance Premium (MIP) Payments are insurance premiums charged by a lender to protect that lenderagainst loss from a mortgager's default. The rates are charged on the balance of the loan and may be paid annually,monthly, or in some combination of the two (split premiums).

Internal Rate-of-Return (IRR) is the most widely used method of valuing a property’s annual cash flow stream. Sincea property’s cash flow is earned in the future, those future dollars must be converted to present-day dollars. The IRRcalculation discounts (reduces) the property’s future cash flow at a rate (i.e. percentage) so that the sum of all cashflow for a specified time period is equal to the initial investment. The rate or percentage needed to do that is the IRR.In other words, IRR is the discount rate at which Net Present Value (NPV) is zero.

Modified Internal Rate-of-Return (MIRR) modifies the IRR to avoid the drawbacks of the traditional IRR. The IRRimplicitly assumes that all cash flow is either reinvested or discounted at the computed IRR rate. In reality, a property’scash flow probably will not be reinvested at the computed IRR rate, but rather earn zero or a small amount of interest.The MIRR eliminates the reinvestment assumption by utilizing user stipulated reinvestment and borrowing rates.

Documents

Peaceful Ln MHP-Discount Sale!€¦ · Peaceful Ln MHP-Discount Sale! 4029 Peaceful LN. Benny Spensieri 813-391-1545 [email protected] Property Description Asking Only $14,000/sp