101 5th St NE Washington, DC 20002-5935 Recommending a Strategy.
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101 5th St NE Washington, DC 20002-5935 Recommending a Strategy
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Transcript of 101 5th St NE Washington, DC 20002-5935 Recommending a Strategy.
101 5th St NE Washington, DC 20002-5935
Recommendinga Strategy
Vision
Purchase 101 5th St NE
Transform 10 rooms into 10 units
Rent property
for 5 years
Sell building
or individual
units
101 5th St NE: VACANT
List Price: $1,795,000
Property Type: Hotel & Motel
Property Sub-type: Economy/ Limited ServiceProperty
Use Type: Investment
Lot Size: 0.03 AC
Zoning Description: R4
Today’s Situation
Convert 10 hotel rooms into 10 individual apartment units
Add 9 top of the line kitchens
Update one existing kitchen
Update 8 bathrooms
Add 2 full bathrooms
Convert 10 bedrooms into 10 individual apartment units
Development Plans:
Revenue & ExpensesYear 1 Year 2
Revenues:Rental Income (Monthly)
Unit 1 $1,650 $1,683.00 Unit 2 $1,650 $1,683.00 Unit 3 $1,650 $1,683.00 Unit 4 $1,650 $1,683.00 Unit 5 $1,650 $1,683.00 Unit 6 $1,650 $1,683.00 Unit 7 $1,650 $1,683.00 Unit 8 $1,650 $1,683.00 Unit 9 $1,650 $1,683.00 Unit 10 $1,650 $1,683.00 Total: $16,500 $16,830.00
Annual Revenue: $198,000 $201,960.00
Expenses:
Advertising $850 $850 Maintenance: $8,000 $8,000 Property Insurance: 10,000 10,000Legal and Professional Fees: $1,000 $1,000 Management Fee: $15,000 $15,000 Property Taxes: $6,815.77 $6,815.77 Total: $41,666 $41,666
Annual Expenses: $41,665.77 $41,665.77
Year 1: Year 2:
Annual Revenue: $198,000 $201,960.00
Annual Expenses: $41,665.77 $41,665.77
Net Income: $156,334.23 $160,294.23
Net Income
SUBTOTAL $2,200.00
TAX RATE 6.00%
SALES TAX $132.00
OTHER
TOTAL $2,332.00
Add Value: Land Improvements101 5th St NE, Washington, D.C. 20007
QUANTITY DESCRIPTION UNIT PRICE AMOUNT
1 Landscaping Materials $2,000.00 $2,000.00
2 Exterior Lighting $100.00 $200.00
Add Value: Building Improvement101 5th St NE, Washington, D.C. 20007
QUANTITY DESCRIPTION UNIT PRICE AMOUNT
75 2 x 4 boards $2.75 $206.25
30 Drywall (light) $10.43 $312.90
75 4 x 4 boards $5.50 $412.50
35 Drywall Fasteners $2.25 $78.75
1 Contractor Completion of trim, doors, hardware $32,000.00 $32,000.00
1 Completion of prime paint coat $15,000.00 $15,000.00
SUBTOTAL $48,010.40
TAX RATE 6.00%
SALES TAX $2,880.62
OTHER
TOTAL $50,891.02
Add Value: Furniture & Fixtures101 5th St NE, Washington, D.C. 20007
QUANTITY DESCRIPTION UNIT PRICE AMOUNT
10 Stainless Steel Dishwashers $399.00 $3,990.00
10 24 Inch Stainless Steel Refrigerator $499.00 $4,990.00
10 Stainless Steel Gas Range $429.00 $4,290.00
10Elkay 22-Gauge Double-Basin Drop-In Stainless Steel Kitchen Sink with Faucet
$109.00 $1,090.00
10 Kitchen Cabinets $500.00 $5,000.00
10 Granite Countertops $300.00 $3,000.00
10 Bathroom Vanities $399.00 $3,990.00
10 Bathroom Mirrors $100.00 $1,000.00
3 Washer/Dryer Stackable $399.00 $1,197.00
SUBTOTAL $28,547.00
TAX RATE 6.00%
SALES TAX $1,712.82
OTHER
TOTAL $30,259.82
2 Computers ($2,000 each) = $4,000
1 Printer ($200) = $200
Office Supplies = $500
Total: $4,700
Equipment
Year 1 Year 2
Land 320,960 -Building 1,474,040 -Improvements (to building) $53,223.02 -Equipment (including computers) $4,700 -Furniture & Fixtures $30,259.82 -Office (for the company’s office costs) $12,000 12,000Vehicles $35,000 -Other Assets (if any) - -
Accounting Categorization
