Great opportunity for a couple to save upto $100,000 per TAX EXEMPT. Completely renovated two side by side residences one for the owner and the other for the residents. Stable residents, some have been at the Home for more than 20 years. Funding from City of Cornwall and the County.
PLACE AIME
CASH FLOW AND RETURN ON INVESTMENT
(Income and operating costs for 2012-2013)
| A. FINANCING | |
| Purchase Price | 665,000 |
| Down payment 35% | 233,750 |
| 1st Mortgage | $432,250 |
| P&I monthly* | $3,298 |
| P&I annual | $39,570 |
| B. CASH FLOW | |
| GROSS INCOME | $223,719 (2013) |
| LESS OPERATING EXPENSES | 96,990 (Includes $25,000 for staff relief) |
| NET OPERATING INCOME | $126,729 |
| LESS MORTGAGE PAYMENTS | 39,570 |
| ANNUAL CASH FLOW | $87,159 or Monthly $7,263 |
|
C. 5 YEAR RETURN ON INVESTMENT (R.O.I) |
|
| Operating Cash Flow | 126,729 x 5 = 633,645 |
| Less Interest paid | 84,392 |
| Total 5 year Income | $549,253 |
| 549,253 (income)/233,750(cash invested) | x 100 = 235% or 47% per year |
| *4.5% 5year closed with 15 year amortization (Commercial Mortgage) | |
D. CAPITALIZATION RATE 126,729/665,000 = 19%
PLACE AIME
Revenue
|
2008 |
$223,060 |
|
2009 |
$214,309 |
|
2010 |
$232,179 |
|
2011 |
$228,783 |
|
2012 |
$207,573 |
|
2013 |
$213,719 |
|
$1,319,623 |
|
Average Annual Revenue over Six Years - $219,937 |
Income Operating Cost for 2013
|
2012 |
2013 |
||||||||||
|
REVENUE |
$207,573 |
$223,719 |
|||||||||
|
Expenses |
|||||||||||
|
Salaries |
$25,000 |
$25,000 |
|||||||||
|
Pin Advance |
$12,544 | $12,734 |
$12,544 |
$12,734 |
|||||||
|
Business Insurance |
$4,473 |
$3,673 |
|
|
|
|
|
Insurance |
$4,473 |
$3,673 |
|
|
Taxes Property & Water |
$4,535 |
$4,751 |
|||||||||
|
Bell Phone/ Fax/Internet/Cable |
$3,500 |
$3,866 |
|||||||||
|
Heat & Electricity |
$8,210 |
$10,661 |
|||||||||
|
Food & Cleaning Supplies |
$23,053 |
$27,688 |
|||||||||
|
Lic Fees/Annual Inspections |
$939 |
$1,266 |
|||||||||
|
Mics/Mice & Repairs |
$4,492 |
$3,351 |
|||||||||
|
$86,746 |
$92,990 |
||||||||||
|
Net Operating Income |
$120,827 |
$130,729 |
|||||||||
Notes:
Major Improvement 2012 – Two Stage Fire Alarm System $46,000.
Amount allocated for salaries for personal time off is estimated.
