A B C D E F G H I J

1 Question
2
3 Basic Information
4
5 Investment Bought For 2,100,000
6 Reversionary Yield 0.12
7 Discount Rate (Equated Yield) 0.10
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9 Current Rate/m2
Tenants Areas (Gross) Remaining Term (Years)
10 Ground UWS 300 $ 350.00 3
11 1 XYZ Technology 262.3 $ 330.00 1
12 2 ABC Insurance 400 $ 320.00 2
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14 Vacancy Prediction Chart
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16 Tenant 1
17 Tenant 2
18 Tenant 3
19 1 2 3 4 5 Year
20 DCF
21 Year 0 1 2 3 4 5 6
22 Income
23 Tenant 1 $105,000.00 $108,150.00 $111,394.50 $114,736.34 $118,178.43 $121,723.78
24 Tenant 2 $86,559.00 $89,155.77 $91,830.44 $94,585.36 $97,422.92 $100,345.60
25 Tenant 3 $128,000.00 $128,000.00 $135,795.20 $135,795.20 $144,065.13 $144,065.13
26 Total $319,559.00 $325,305.77 $339,020.14 $345,116.89 $359,666.47 $366,134.51
27 Vacancy loss @ 6% $0.00 $5,349.35 $8,147.71 $6,884.18 $0.00 $0.00
28 Effective Gross Income $319,559.00 $319,956.42 $330,872.43 $338,232.71 $359,666.47 $366,134.51
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30 Resale Price $2,316,013.26
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32 Total Revenue $0.00 $319,559.00 $319,956.42 $330,872.43 $338,232.71 $2,675,679.73 $366,134.51
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34 Outgoings
35 Management Fee $19,173.54 $19,197.39 $19,852.35 $20,293.96 $21,579.99 $21,968.07
36 Property tax $35,000.00 $35,700.00 $36,414.00 $37,142.28 $37,885.13 $38,642.83
37 Insurance $12,000.00 $12,240.00 $12,484.80 $12,734.50 $12,989.19 $13,248.97
38 Utilities $5,000.00 $5,100.00 $5,202.00 $5,306.04 $5,412.16 $5,520.40
39 Repairs $8,000.00 $8,160.00 $8,323.20 $8,489.66 $8,659.46 $8,832.65
40 Total Capital Outlays $2,100,000.00
41 Total $2,100,000.00 $79,173.54 $80,397.39 $82,276.35 $83,966.44 $86,525.92 $88,212.92
42
 A B C D E F G H I J
43 Net Income -$2,100,000.00 $240,385.46 $239,559.04 $248,596.09 $254,266.27 $2,589,153.81 $277,921.59 NOI
44 PV @ 10% 1.000 0.909 0.826 0.751 0.683 0.621
45 PV/discounted CF -$2,100,000.00 $218,532.24 $197,982.68 $186,773.92 $173,667.28 $1,607,660.81
46
47 NPV on prop $284,616.92
48 Excel NPV on prop $284,616.92
49 Excel IRR on prop 13.44%
 A B C D E F G H I
1 Question
2 Mortgage Info
3 Basic Information Loan 50% $1,050,000
4 Equity 50% $1,050,000
5 Investment Bought For 2,100,000 Term 240 payments
6 Reversionary Yield 0.12 Interest 0.75% p.m.
7 Discount Rate (Equated Yield) 0.10 Monthly PMT $9,447.12
8 Annualised Debt Service $113,365.47
9 Current Rate/m2
Tenants Areas (Gross) Remaining Term (Years)
10 Ground UWS 300 $ 350.00 3
11 1 XYZ Technology 262.3 $ 330.00 1
12 2 ABC Insurance 400 $ 320.00 2
13
14 Vacancy Prediction Chart
15
16 Tenant 1
17 Tenant 2
18 Tenant 3
19 1 2 3 4 5 Year
20 DCF
21 Year 0 1 2 3 4 5 6
22 Income
23 Tenant 1 $105,000.00 $108,150.00 $111,394.50 $114,736.34 $118,178.43 $121,723.78
24 Tenant 2 $86,559.00 $89,155.77 $91,830.44 $94,585.36 $97,422.92 $100,345.60
25 Tenant 3 $128,000.00 $128,000.00 $135,795.20 $135,795.20 $144,065.13 $144,065.13
26 Total $319,559.00 $325,305.77 $339,020.14 $345,116.89 $359,666.47 $366,134.51
27 Vacancy loss @ 6% $0.00 $5,349.35 $8,147.71 $6,884.18 $0.00 $0.00
28 Effective Gross Income $319,559.00 $319,956.42 $330,872.43 $338,232.71 $359,666.47 $366,134.51
29
30 Resale Price $1,384,589.25
31
32 Total Revenue $319,559.00 $319,956.42 $330,872.43 $338,232.71 $1,744,255.72 $366,134.51
33
34 Outgoings
35 Management Fee $19,173.54 $19,197.39 $19,852.35 $20,293.96 $21,579.99 $21,968.07
36 Property tax $35,000.00 $35,700.00 $36,414.00 $37,142.28 $37,885.13 $38,642.83
37 Insurance $12,000.00 $12,240.00 $12,484.80 $12,734.50 $12,989.19 $13,248.97
38 Utilities $5,000.00 $5,100.00 $5,202.00 $5,306.04 $5,412.16 $5,520.40
39 Repairs $8,000.00 $8,160.00 $8,323.20 $8,489.66 $8,659.46 $8,832.65
 A B C D E F G H I
40 Capital $1,050,000.00
41 Total $1,050,000.00 $79,173.54 $80,397.39 $82,276.35 $83,966.44 $86,525.92 $88,212.92
42
43 Net Income -$1,050,000.00 $240,385.46 $239,559.04 $248,596.09 $254,266.27 $1,657,729.80 $277,921.59
44 Debt service $0.00 $113,365.47 $113,365.47 $113,365.47 $113,365.47 $113,365.47
45 Bft-tax CF on equity -$1,050,000.00 $127,019.99 $126,193.57 $135,230.61 $140,900.80 $1,544,364.33
46 PV @ 10% 1.000 0.909 0.826 0.751 0.683 0.621
47 PV/discounted bft-tax CF -$1,050,000.00 $115,472.72 $104,292.20 $101,600.76 $96,237.14 $958,928.74
48
49 NPV on equity $326,531.57
50 Excel NPV on equity $326,531.57
51 Excel IRR on equity 17.40%
52
53
54 Debt Coverage Ratio 2.12
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2 Equity in Year 5
3 Resale Price $2,316,013.26
4 OB of the Loan in Year 5 $931,424.01
5 Remaining Equity $1,384,589.25
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