800 6th Ave, Howard Lake, MnOne 12 Unit Building

$428,000

Cost Per Unit : $35,667

Cap Rate : 9.1% Cash-on-Cash : 14.3%

Terms: Cash / New Financing

Net Operating Income : $38,886

InsideTrackRealty.com : 612-225-9445

Inside Track Realty

InsideTrackRealty.com : 612-225-9445

Inside Track Realty

Summary :This twelve unit building was built in 1984 with large apartments, nice common areas and plenty ofparking. It’s in a great small town neighborhood with nicely landscaped grounds including lots ofgrass and mature trees.

It is made up of one bedroom units and has an upper floor party-room & hallway bathroom whichcould be combined to create an additional studio apartment.

Also included is the adjacent lot, with a storage garage, offering great green space for tenants aswell as future building potential.

The owner has asked that both the confidentiality of this offering and the privacy of the tenants berespected. Please do not disturb tenants or enter grounds with out appointment. The financial in-formation and condition information to be verified by buyer. Information sources include : Own-er, County Tax Records, City Utilities and Listing Agent estimates.

Year Built 1984

Sq Footage 10,790 Sq Ft

Units 12 One Beds

Roof Age ½ facing alley is new in 2011, other half original

Windows Original - two picture windows are newer

Heating Type Boilers - Two

Heating Paid By Owner

Air Conditioning Tenants paid - window units

Laundry Coin Operated, Owned

Construction Exterior: Stucco

Parking / Garages Two Lots with plenty of parking

Lot Size 26,641 Sq Ft, the additional lot is 26,941 Sq Ft.

Grounds Nicely Landscaped / Mature Trees & Grass

Notable UpdatesCondition Very GoodOther Comes with 2nd Parcel - Next door lot

Rents Monthly AnnualOne Bed One Bath * 10 OF $520 $6,240One Bed One Bath * 1 OF $500 $6,000One / One Bath * 1 OF $430 $5,160

InsideTrackRealty.com : 612-225-9445

Purchase Analysis

Inside Track Realty

Purchase InfoPurchase Price $428,000

- First Mortgage ($321,000)

- Second Mortgage ($0)

= Downpayment $107,000+ Buying Costs $8,560

+ Initial Improvements $0

= Initial Cash Invested $115,560Square Feet (12 Units) 10,790

Cost per Square Foot $40

Monthly Rent per Square Foot $0.57

Cost per Unit $35,667

Average Monthly Rent per Unit $511

Mortgages First SecondLoan-To-Cost Ratio 75% 0%

Loan-To-Value Ratio 75% 0%

Loan Amount $321,000 $0

Loan Type Amortizing

Term 25 Years

Interest Rate 5%

Payment $1,866.95 $0.00

Financial Metrics (Year 1)Annual Gross Rent Multiplier 5.8

Operating Expense Ratio 47.1%

Debt Coverage Ratio 1.74

Cap Rate (Purchase Price) 9.1%

Cash on Cash Return 14.3%

AssumptionsAppreciation Rate 1.0%

Vacancy Rate 5.0%

Income Inflation Rate 3.0%

Expense Inflation Rate 3.0%

LTV for Refinance 75.0%

Income Monthly AnnualGross Rent $6,130 $73,560

Vacancy Loss ($306) ($3,678)

Laundry $300 $3,600

Operating Income $6,124 $73,482

Expenses (% of Income) Monthly AnnualMaint / Repair (1%) ($50) ($600)

Insurance (4%) ($271) ($3,250)

Taxes (11%) ($646) ($7,754)

Utilities - Heat (4%) ($220) ($2,640)

Grounds / Snow / Lawn (4%) ($215) ($2,580)

Utilities - Electric (1%) ($61) ($732)

Utilities - Water/Sewer (20%) ($1,200) ($14,400)

Trash (4%) ($220) ($2,640)

Operating Expenses (47%) ($2,883) ($34,596)

Net Performance Monthly AnnualNet Operating Income $3,240 $38,886- Mortgage Payments ($1,867) ($22,403)

- Year 1 Improvements ($0) ($0)

= Cash Flow $1,374 $16,483

InsideTrackRealty.com : 612-225-9445

Inside Track Realty

InsideTrackRealty.com : 612-225-9445

Inside Track Realty

Front View Back View

Side View Front Entry Inside

Lower Hallway Entry

InsideTrackRealty.com : 612-225-9445

Inside Track Realty

Lower Unit Kitchen Lower Unit Living Room

Lower Unit Bedroom Lower Unit Bath

Laundry Mechs - Elec Panel