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Income property showcase august 2012

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While you might find this video HIGHLY educational, the income properties contained in this video are currently for sale. After you've watched this video, please take our short follow up interest …

While you might find this video HIGHLY educational, the income properties contained in this video are currently for sale. After you've watched this video, please take our short follow up interest survey to let us know what types of properties interest you most: http://www.hasslefreecashflowinvesting.com/investment-opportunities/august-2012/

If you would like due diligence information on a specific property, please send an email to David@hasslefreecashflowinvesting.com and we'll get the conversation started.


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  • 1. August 2012 Income Property ShowcaseIf you have interest in acquiring a property like the one presented here, please send an email to David@HasslefreeCashflowInvesting.com and we’ll send you access to the due diligence information for that property.
  • 2. TODAY’S AGENDA Evaluate property Evaluate markets Take notes Solicit feedback through pollsAcquisition follow up procedure Exit Survey
  • 3. Disclaimers Information may not be accurate High reliance on 3rd parties for infoAll forecasts are inherently inaccurateDO YOUR OWN DUE DILIGENCEbefore making an investment decision
  • 4. Real Estate Profit Centers Cash throw off (aka cashflow) Tax savings from depreciation Equity growth from loan amortization Equity growth from price appreciationForced Equity from change of use /developmentAll numbers in this presentation show annualized profits solely usingCash Throw Off. Your returns could be potentially much higher when factoring all of the ways you can make money in real estate.
  • 5. Atlanta, Georgia Atlanta is the primary transportation hub of the Southeastern United StatesThe Atlanta Metro is the 9th largest metro area in the nation with over 5.3 million residents Its economy ranks 15th among world cities and 6th in the nation Clydesdale - Atlanta
  • 6. Top Economic Drivers in Atlanta, GA1.Logistics and Transportation  Norfolk Southern and CSX railroad companies  Hartsfield-Jackson Atlanta International Airport  Delta Airlines  UPS2.Media Operations  Cable News Network  Turner Broadcasting System  Cox Enterprises3.Government Administration  State capital functions  Federal judiciary court systems  Atlanta Police Deparment4.Higher Education  More than 30 colleges and universities located in Atlanta  Georgia Institute of Technology / Georgia State University / Clark Atlanta University5.Other  Coca-Cola  The Home Depot  AT&T Mobility Clydesdale - Atlanta
  • 7. Top Local Employers Norfolk Southern Railroads CSX RailroadsHartsfield-Jackson Atlanta Intl Airport UPS Cable News Network Turner Broadcast Systems COX Enterprises Coca Cola Home Depot AT&T Georgia Institute of Technology Georgia State University Clydesdale - Atlanta
  • 8. “Bread and butter” Atlanta, Georgia
  • 9. Property Information Single family home Built in ~2002 3 bed / 2 bath 1,118 Sq Ft Clydesdale - Atlanta
  • 10. Financial InformationPurchase Price: $70,000 Gross Rent: $850 Vacancy -$75 Management -$77 Property Taxes -$85 Insurance -$50 Maintenance -$45Net Operating Income $518 CAP Rate 8.9% Clydesdale - Atlanta
  • 11. Financing Information Purchase Price $70000 Down Payment 20% Down Payment $14000 Loan $56000 Closing Costs $5,000Total Cash Invested $19,000 Interest Rate 4.5% Loan Term 30 yearsMonthly Payment -$284 NOI $605 Cashflow $321Cash Throw Off 20.3% Clydesdale - Atlanta
  • 12. Location InformationMableton, GA is a part of the 5 county Atlanta Metropolitan Area. Clydesdale - Atlanta
  • 13. How can I make moneywith this property ?• Rental income: creates monthly spendable cashflow• High leverage: 80% LTV at historically low fixed rates• Loan Amortization: tenant’s pay down mortgage• Tax Benefits: depreciation over 27.5 years• Resell to owner occupant when market strengthens• Potential Rent Increases from housing shortage: • population growth + restricted land supply + lack of new construction Clydesdale - Atlanta
  • 14. Kansas City, MO 29th largest metro in the US In 2010 Forbes.com ranked Kansas City as the third most dangerous city in the country2010, Money Magazine rated Overland Park, Kansas, the 7th best city to live in the United States Kansas City, MO
  • 15. Location InformationOver 2 million people live in the metro Kansas City, MO
  • 16. Top Economic Drivers in Kansas City, MO1. US Federal Government  Over 146 federal agencies make it the largest employer in the metro  IRS has 4,000 employees  Federal Reserve Bank  GSA has 800 employees  Social Security Administration employs 1,7002.Company Headquarters  Sprint Nextel - Fortune 500  H&R Block - Fortune 500  AMC Theaters - Fortune 1000  Applebees - Fortune 1000  Garmin Internation - Fortune 1000  Russell Stover’s Candies - Fortune 10003.Agriculture  Dairy Farmers of America  Kansas City Board of Trade (principal commodity exchange for wheat)4.Manufacturing  Ford and General Motors assembly plant  Smith Electric Vehicles  Honeywell nuclear weapons manufacturing  Marion Laboratories is one of nations largest drug manufacturers Kansas City, MO
  • 17. Bite Sized Rental Kansas City, MO
  • 18. Property Information Currently being rehabbed 3 bed / 1 bath each 1,197 Sq Ft 1912 Kansas City, MO
  • 19. Financial InformationPurchase Price: $39000 Gross Rent: $650 7% Vacancy -$4610% Management -$60 Property Taxes -$24 Insurance -$42 Maintenance -$30 Replacement -$50Net Operating Income $399 CAP Rate 12.3% Kansas City, MO
  • 20. Financing Information Purchase Price $39000 Down Payment 35% Down Payment $13650 Loan $25350 Closing Costs $3,000Total Cash Invested $16,650 Interest Rate 6.5% Loan Term 30 yearsMonthly Payment -$160.23 Non-Recourse IRA Loan NOI $399 Cashflow $238.77Cash Throw Off 17.2% Kansas City, MO
  • 21. How can I make moneywith this property ? • Rental income: creates monthly spendable cashflow • Non-recourse IRA loans / commercial blanket loans available • Loan Amortization: tenant’s pay down mortgage • Tax Benefits: depreciation over 27.5 years • Resell to owner occupant with seller financing Kansas City, MO
  • 22. Tulsa, OK 2nd largest city in Oklahoma.Tulsa County is the most densely populated county in OK. Claremore, OK
  • 23. Population InformationTulsa Metro Area boasts ~1 million people Claremore, OK
  • 24. Top Economic Drivers in Tulsa, OK1.Aerospace  American Airlines  Tulsa International Airport  FlightSafety International2.Oil / Natural Gas  Baker Hughes  Williams Companies  SemGroup  Syntroleum  WindStream Communciations3.Shipping and Cargo  Tulsa International Airport  Tulsa Port of Catoosa4.Higher Education  University of Tulsa / Oral Roberts University5.Other  QuikTrip  BOK Financial Corporation  Dollar Thrifty Automotive Group Claremore, OK
  • 25. Top Local Employers American Airlines Tulsa Intl. Airport Williams Gas Pipeline Transco AMERICAN LEATHER SEMGroup Corp. ARMY &Syntroleum Corp. AIR FORCE EXCHANGE SERVICE SOLO CUPof Catoosa Tulsa Port COMPANY University of Tulsa SWIFT TRANSPORTATION Oral Roberts University TEXWOOD INDUSTRIES INCUS POSTALQuikTrip Corp. SERVICE DISTRIBUTION BOK Financial Corp. CENTER Dollar Thrifty Automotive Group VA NORTH TEXAS HEALTH CARE SYSTEM FlightSafety Intl Baker Hughes Windstream Communications Claremore, OK
  • 26. Location Information Claremore is a Suburb of Tulsa, OKAdjacent to Rogers State University and Claremore Hospital Claremore, OK
  • 27. Singly Family Residence Claremore, OK (Tulsa) Claremore, OK
  • 28. Property Information Single family home Built in ~1950 4 bed / 2 bath Detached 1 car garage 1,587 sq ft Can be leased as a 4/2 SFR or as a non-conforming duplex 3/1 + 1/1 Claremore, OK
  • 29. Financial Information Purchase Price: $55,000 Gross Rent: $700 7% Vacancy -$49 Management -$65.10Property Taxes -$32 Insurance -$35 Maintenance -$60 HOA / Misc $0Net Operating Income $458.90 CAP Rate 10.01% Claremore, OK
  • 30. Financing Information Purchase Price $55,000 Down Payment 20% Down Payment $11,000 Loan $44,000 Closing Costs $3,000Total Cash Invested $14,000 Interest Rate 4.5% Loan Term 30 yearsMonthly Payment -$222.94 NOI $458.90 Cashflow $235.96Cash Throw Off 20.2% Claremore, OK
  • 31. How can I make moneywith this property ?• SUPER CASHFLOW of 20%?!?!?!?!?!?• High leverage: 80% LTV at historically low fixed rates• Loan Amortization: tenant’s pay down mortgage• Tax Benefits: depreciation over 27.5 years• Resell to owner occupant when market strengthens Claremore, OK
  • 32. Fiesta Apartments 12 unit apartments - Tulsa, OK
  • 33. Property Information 12 Unit Apartment Complex 2 Buildings. 2 Stories Built in ~1959 4 bed / 2 bath 8,212 Sq Ft 2 blocks from the University of Tulsa Fiesta - Tulsa
  • 34. Financial InformationPurchase Price: $330,000 Gross Rent: $51,808 Vacancy -$2,590 Management -$1,727 Property Taxes -$4,632 Insurance -$2,780 Maintenance -$4,106 Utilities / Misc -$14,151 Laundry/Electrical Reimbursement $7,206Net Operating Income $29,028 CAP Rate 8.80% Fiesta - Tulsa
  • 35. Financing Information Purchase Price $330,000 Down Payment 25% Down Payment $82,500 Loan $247,500 Closing Costs $8,000Total Cash Invested $90,500 Interest Rate 5.5% Loan Term 25 yearsMonthly Payment -$1519.87 NOI $2,419 Cashflow $899Cash Throw Off 12% Fiesta - Tulsa
  • 36. Fiesta - Tulsa
  • 37. How can I make moneywith this property ?• High CASHFLOW from Rental income• Ability to raise rents = forced equity• 25 Year Loan Amortization: tenant’s pay down mortgage• Tax Benefits: depreciation• Capital gains potential from future CAP Rate compression Fiesta - Tulsa
  • 38. “Double Fourplex”Class C - Income Property in Path of Progress Midtown - Tulsa, OK walk to Hillcrest Hospital, Drillers Stadium, BOK Center
  • 39. Property Information 2 Fourplexes Fully Leased 2 bed / 1 bath x 4 1 bed / 1 bath x 4 1 car garage each 5,478 Sq Ft 0.31Acres Built in 1955 $38/sf Separate electric meters Oaks Apartments - Tulsa
  • 40. Population Informationwalk to hospital and 1 mile to downtown Oaks Apartments - Tulsa
  • 41. Financial InformationPurchase Price: $200000 Gross Rent: $34,800 8% Vacancy -$2,7848% Management -$2,561 Property Taxes -$1,700 Insurance -$1,600 Maintenance -$6,500Net Operating Income $19,655 CAP Rate 9.83% Oaks Apartments - Tulsa
  • 42. Financing Information Purchase Price $200000 Down Payment 25% Down Payment $50000 Loan $150000 Closing Costs $5,000Total Cash Invested $55,000 Interest Rate 4.5% Loan Term 30 yearsMonthly Payment -$760 NOI $1,638 Cashflow $878Cash Throw Off 19.2% Oaks Apartments - Tulsa
  • 43. How can I make moneywith this property ?• Rental income: creates monthly spendable cashflow• 75% LTV at historically low fixed rates• Loan Amortization: tenant’s pay down mortgage• Tax Benefits: depreciation over 27.5 years• Efficiency of management if purchasing both properties, but dual exit strategy• Potential appreciation from CAP rate compression Oaks Apartments - Tulsa
  • 44. “Double Duplex”Pride of Ownership Property Broken Bow OK (Tulsa)
  • 45. Property Information 2 Duplexes Fully Leased 3 bed / 2 bath each 1 car garage each 2,232 Sq Ft 0.67 Acres 1981 Duplexes - Broken Arrow
  • 46. Financial InformationPurchase Price: $150000 Gross Rent: $1,600 Vacancy -$112 Management -$149 Property Taxes -$150 Insurance -$67 Maintenance -$60 HOA / Misc $0Net Operating Income $1,063 CAP Rate 8.50% Duplexes - Broken Arrow
  • 47. Financing Information Purchase Price $150000 Down Payment 20% Down Payment $30000 Loan $120000 Closing Costs $5,000Total Cash Invested $35,000 Interest Rate 4.5% Loan Term 30 yearsMonthly Payment -$608 NOI $1063 Cashflow $455Cash Throw Off 15.6% Duplexes - Broken Arrow
  • 48. How can I make moneywith this property ?• Rental income: creates monthly spendable cashflow• High leverage: 80% LTV at historically low fixed rates• Loan Amortization: tenant’s pay down mortgage• Tax Benefits: depreciation over 27.5 years• Resell to owner occupant when market strengthens (strong schools)• Efficiency of management if purchasing both properties, but dual exit strategy Duplexes - Broken Arrow
  • 49. Chattanooga, TN The future of the southeast. Multifamily - Chattanooga
  • 50. Geographic InformationChattanooga is located in the heart of the southeast, centrally located between other major cities such as Nashville, Huntsville, Birmingham, Atlanta, Knoxville, Ashville, Columbia, and Charlotte. Multifamily - Chattanooga
  • 51. Top Economic Drivers in Chattanooga, TN1. Warehousing & Distribution • Amazon • Kenco Group2. Manufacturing • Auto: Volkswagen / Miller Industries • Food: Mckee Foods Corporation/ Chattanooga Coca-Cola Bottling Co. • Construction Equipment: Astec Industries, Komatsu America Corp.3. Insurance Services • Blue Cross BlueShield Of Tennessee/ UNOM4.Healthcare • Erlanger Health System/ Memorial Health Care/ CIGNA Health Care/ Parkridge Medical Center5. Higher Education • University of Tennessee at Chattanooga/ Chattanooga State/ Southern Adventist University6. Utilities • Tennessee Valley Authority/ Electric Power Board of Chattanooga Multifamily - Chattanooga
  • 52. Top Local EmployersBlueCross BlueShield of Tennessee Tennessee Valley Authority Erlanger Heath System Memorial Health Care System McKee Foods Corporation Unum Group Volkswagen Chattanooga Multifamily - Chattanooga
  • 53. “Easy Multifamily” Chattanooga, TN
  • 54. Property Information 11 Unit Multifamily Complex Totally Renovated in 2011 90.9% Occupancy 10 minutes to downtown. State-funded tenants. Additional lot for potential construction of more units. Multifamily - Chattanooga
  • 55. Financial InformationPurchase Price: $565,000 Gross Rent: $87,000 Vacancy -$8700 Management -$7830 Property Taxes -$4250 Insurance -$2815 Maintenance -$7200 Utilities / Misc. -$1800Net Operating Income $53,655 CAP Rate 9.50% Multifamily - Chattanooga
  • 56. Financing Information Purchase Price $565,000 Down Payment 25% Down Payment $141,250 Loan $423,750 Closing Costs $8,475Total Cash Invested $149,725 Interest Rate 5.5% Loan Term 20 yearsMonthly Payment -$2973.22 NOI $4471.25/Monthly Cash flow $1498.03/MonthlyCash Throw Off 12% Multifamily - Chattanooga
  • 57. How can I make moneywith this property ?• Rental income: creates monthly spendable cash flow• High leverage: 75% LTV at historically low fixed rates• Loan Amortization: tenant’s pay down mortgage• Tax Benefits: depreciation• Resell in future for profit if CAP rates are compressed and/or if rents increase• Increased Occupancy/Potential Rent Increases(current rents are 5-10% less than market rents).• Construction of more units on additional 0.28 acres of land or split and sell-off for immediate equity. Multifamily - Chattanooga
  • 58. “Net Leased Family Dollar” Chattanooga, TN
  • 59. Property Information High Visibility Location Strong Traffic Counts Net Leased Asset - Minimal Owner Responsibility Investment Grade Tenant Built In Rental Increases Lease Expiration - 1/31/2020 Family Dollar - Chattanooga
  • 60. Geographic InformationChattanooga is located in the heart of the southeast, centrally located between other major cities such as Nashville, Huntsville, Birmingham, Atlanta, Knoxville, Ashville, Columbia, and Charlotte. Family Dollar - Chattanooga
  • 61. Family Dollar - Chattanooga
  • 62. Top Local Employers Amazon Erlanger Medical Center Parkridge Valley Hospital Chattanooga Metropolitan AirportChattanooga School for the Liberal Arts Hickory Valley Golf Course Hilton Garden Inn Family Dollar - Chattanooga
  • 63. Financial InformationPurchase Price: $678,000 Gross Rent: $56,000 Vacancy $0 Management $0 Property Taxes $0 Insurance $0 Maintenance -$1000 HOA / Misc $0 Family Dollar Stock PriceNet Operating Income $55000 CAP Rate 8.11% Family Dollar - Chattanooga
  • 64. Financing Information Purchase Price $678,000 Down Payment 15% Down Payment $101,700 Loan $576,300 Closing Costs $7,000Total Cash Invested $108,700 Interest Rate 4.75% Loan Term 25 yearsMonthly Payment -$3865.40 NOI $4,583.33 Cashflow $717.93Cash Throw Off 7.9% Family Dollar - Chattanooga
  • 65. How can I make moneywith this property ?• Rental income: creates monthly spendable cashflow• High leverage: 85% LTV at historically low fixed rates• Commercial Loan Amortization: tenant’s pay down mortgage• Tax Benefits: depreciation• Built in rent increases force equity• CAP Rate compression• SIMPLICITY!!!• Resume builder / syndication opportunity Family Dollar - Chattanooga
  • 66. Bite Sized- single tenant retail Chattanooga, TN
  • 67. Property Information Proven Location / At this location since 2001 National Investment Grade Credit Tenant Lease expires 4/30/15 Rental Increase in 2015 at 3 yr renewal option Built in 1983, Remodeled in 2001 2,200 Sq Ft. H&R Block - Chattanooga
  • 68. Financial InformationPurchase Price: $199,588 Gross Rent: $24000 Vacancy $0 Management $0 Property Taxes -$5034 Insurance -$1000 Maintenance -$1500 HOA / Misc $0Net Operating Income $16466 CAP Rate 8.25% H&R Block - Chattanooga
  • 69. Financing Information Purchase Price $199588 Down Payment 25% Down Payment $49897 Loan $149691 Closing Costs $4,000Total Cash Invested $53,897 Interest Rate 5% Loan Term 25 yearsMonthly Payment -$875.15 NOI $1,372 Cashflow $497Cash Throw Off 11.1% H&R Block - Chattanooga
  • 70. How can I make moneywith this property ?• Rental income: creates monthly spendable cashflow• Loan Amortization: tenant’s pay down mortgage• Tax Benefits: depreciation over 39 years• Resell to owner occupant (potential owner user property)• Rent Increase at renewal period• CAP Rate compression would increase the value of property H&R Block - Chattanooga
  • 71. NN Lease Post Office “mail box money”
  • 72. Property Information Leased till 1/31/17 Highest producing post office in county Located in central business area of Columbus, NC Leased with USPS since 1987 Built in 1987 - Build to Suit 4182 sf building on 1.11 acres 36 Parking Spaces Landlord pay roof & insurance New roof in 2009 with warranty Post Office - Columbus
  • 73. Will the post office go out of business?The USPS employs over 574,000workers and operates over 218,000vehicles.The USPS is the operator of the largestvehicle fleet in the world.The USPS traces its roots to 1775during the Second ContinentalCongress, where Benjamin Franklinwas appointed the first postmastergeneral.The USPS is legally obligated to serveall Americans, regardless of geography,at uniform price and quality. Post Office - Columbus
  • 74. Financial InformationPurchase Price: $525000 Gross Rent: $51000 Vacancy $0 Management $0 Property Taxes $0 Insurance -$1,059 Maintenance -$300 HOA / Misc $0Net Operating Income $49641 $12.21 /sf NN CAP Rate 9.46% Post Office - Columbus
  • 75. Financing Information Purchase Price $525000 Down Payment 25% Down Payment $131250 Loan $393750 Closing Costs $6,000Total Cash Invested $137,250 Interest Rate 5.5% Loan Term 25 yearsMonthly Payment -$2418 NOI $4,137 Cashflow $1719Cash Throw Off 15.0% Post Office - Columbus
  • 76. Geographic InformationColumbus, NC is located off Interstate 26 which connects to the greater Southeast region It is the county seat of Polk County Post Office - Columbus
  • 77. County Seat - Center of Town Post Office - Columbus
  • 78. How can I make moneywith this property ?• Rental income: creates monthly spendable cashflow• Commercial Financing: 75% LTV at historically low fixed rates• Loan Amortization: tenant’s pay down mortgage• Tax Benefits: depreciation over 39 years• Re-use as medical, professional office, local government, etc.• Substantial CAP Rate compression upon renewal of lease or stability of USPS• Syndication opportunity Post Office - Columbus
  • 79. Louisville, KentuckyLouisville’s strategic location makes it the hub of America’s shipping and cargo industries Office - Louisville
  • 80. Population Information Louisville, KY is the 17th largest city in the nationThe Louisville Metro includes over 1.3 million residents Office - Louisville
  • 81. Top Economic Drivers in Louisville, KY1.Shipping  Worldport global air-freight hub for UPS  Louisville International Airport  Louisville and Portland Canal2.Cargo  Louisville and Nashville Railroad  Crossroads of major interstate highways3.Healthcare / Medicine  Humana  PharMerica  Norton Healthcare Inc.4.Manufacturing  Ford production plants  General Electric appliance factory5.Higher Education  University of Louisville  Bellarmine University  Spalding University  Sullivan University Office - Louisville
  • 82. Location InformationSubmarket Description Office - Louisville
  • 83. Top Local Employers UPS FORD HUMANA PHARMERICA GENERAL ELECTRIC UNIVERSITY OF LOUISVILLE NORTON HEALTHCARE INC.LOUISVILLE AND PORTLAND CANAL LOUISVILLE INTERNATIONAL AIRPORT Office - Louisville
  • 84. ENORMOUS CASHFLOW “NNN Single Tenant Office” in Louisville, KY
  • 85. Office - Louisville
  • 86. Office - Louisville
  • 87. Office - Louisville
  • 88. Office - Louisville
  • 89. Office - Louisville
  • 90. Property Information Business Park - Office Built in 1996 Recently remodeled Class B Office Space Roof replaced in 2009 100% Occupied 6,000 SF 0.36 Acres 100% Leased NNN Office - Louisville
  • 91. Financial InformationPurchase Price: $625,000 Gross Rent: $84,000 Vacancy $0 Management -$4200 Property Taxes $0 Insurance $0 Maintenance -$1200 HOA / Misc $0Net Operating Income $78600 CAP Rate 12.6% Office - Louisville
  • 92. Financing Information Purchase Price $625,000 Down Payment 20% Down Payment $125,000 Loan $500,000 Closing Costs $8,000Total Cash Invested $133,000 Interest Rate 5% Loan Term 25 yearsMonthly Payment -$2923 NOI $6,550 Cashflow $3,627Cash Throw Off 32.7% Office - Louisville
  • 93. How can I make moneywith this property ?• Rental income: creates HUGE monthly spendable cashflow• High Commercial leverage: 80% LTV at historically low rates• Loan Amortization: tenant’s pay down mortgage• Tax Benefits: depreciation over 39 years• Four diverse tenants + one master tenant• Syndication opportunity• Arbitrage opportunity Office - Louisville
  • 94. Denver, ColoradoBeing the largest city within 500 miles, it is a hub of storage and distribution of goods and services to both the Mountain States and Western United States. The Denver Metropolitan Area boasts a population of nearly 3 million Brook Forrest - Colorado
  • 95. Location InformationEvergreen, CO is only 35 minutes from downtown Denver It offers all season recreational activities Brook Forrest - Colorado
  • 96. Top Economic Drivers in Denver, CO1.Trade  Denver International Airport2.Telecommunications  Mountain States Telephone and Telegraph Company (now Qwest)  Dish Network  Comcast3.Engineering  EnCana  Haliburton  Smith International4.Tourism  Rocky Mountains5.Food Corporations  Chipotle headquarters  Quizno’s headquarters6.Higher Education  University of Denver / University of Colorado, Denver / University of Colorado, Boulder Multi-Family - Denver
  • 97. Population InformationThe Denver Metropolitan Area boasts a population of nearly 3 million It is the 21st most populous US metropolitan area Multi-Family - Denver
  • 98. “Swiss Chalet”Long term rental with vacation rental potential Evergreen, CO (Denver)
  • 99. Brook Forrest - Colorado
  • 100. Brook Forrest - Colorado
  • 101. Property Information Nestled in Ideal Vacation Setting 6 Unit Complex Three Studios Two 1 bed / 1 bath One 2 bed / 1 bath Built 1924 Remodeled 2010 Brook Forrest - Colorado
  • 102. Financial Information as long term rentalPurchase Price: $310,000 Gross Rent: $4,185 6% Vacancy -$25110% Management -$419 Property Taxes -$284 Insurance -$170 Maintenance -$120 Utilities -$869Net Operating Income $2072 CAP Rate 8.0% Brook Forrest - Colorado
  • 103. Financing Information Purchase Price $310,000 Down Payment 25% Down Payment $77,500 Loan $232,500 Closing Costs $8,000Total Cash Invested $85,500 Interest Rate 6% Loan Term 25 yearsMonthly Payment -$1539 NOI $2072 Cashflow $533Cash Throw Off 7.5% Brook Forrest - Colorado
  • 104. Brook Forrest - Colorado
  • 105. Brook Forrest Inn Subject Brook Forrest - Colorado
  • 106. Brook Forrest - Colorado
  • 107. Evergreen Colorado Vacation Cabins $100-250/night Brook Forrest - Colorado
  • 108. Rental Rates$85-225/night Brook Forrest - Colorado
  • 109. Financial Information as vacation rental Purchase Price: $410,000 (includes $100k furnishings) Gross Rent: $273,750 $125 / night x 6 units 35% Vacancy -$95,813 24% Management -$42,705 Property Taxes -$3,408 Insurance -$3,600Maintenance / Replacement -$21,600 Utilities -$17,628 Net Operating Income $88,997 CAP Rate 21.7% Brook Forrest - Colorado
  • 110. Financing Information as Vacation Rental Purchase Price $310,000 Down Payment 25% Down Payment $77,500 Loan $232,500Closing Costs including furnishings $108,000 Total Cash Invested $185,500 Interest Rate 6% Loan Term 25 years Monthly Payment -$1539 NOI $7,416 Cashflow $5877 Cash Throw Off 38.0% Brook Forrest - Colorado
  • 111. How can I make moneywith this property ?• Rental income: creates monthly spendable cashflow• High leverage: 75% LTV at historically low fixed rates• Loan Amortization: tenant’s pay down mortgage• Tax Benefits: depreciation over 39 years• Hold as long term rental or convert vacation rental (run as B&B at retirement)• Syndication as a fractional ownership / lifestyle property Brook Forrest - Colorado
  • 112. Multi-Family Home Sandy from Denver, CO
  • 113. Top Local Employers Haliburton Denver International Airport EnCana Smith International Chipotle Headquarters University of DenverUniversity of Colorado, Denver Multi-Family - Denver
  • 114. Property Information Non-conforming triplex Built in ~1962 Remodeled 2009 3bed 2 bath 2bed 2 bath 2 bed 2 bath ~3,640 sq ft Multi-Family - Denver
  • 115. Multi-Family - Denver
  • 116. Financial InformationPurchase Price: $190000 Gross Rent: $2095 6% Vacancy -$12610% Management -$210 Property Taxes -$174 Insurance -$70 Maintenance -$100 Utilities -$120Net Operating Income $1,295 CAP Rate 8.18% Multi-Family - Denver
  • 117. Financing Information Purchase Price $190000 Down Payment 25% Down Payment $47500 Loan $142500 Closing Costs $6,000Total Cash Invested $53,500 Interest Rate 4.5% Loan Term 30 yearsMonthly Payment -$722 NOI $1295 Cashflow $573Cash Throw Off 12.9% Multi-Family - Denver
  • 118. How can I make moneywith this property ?• Rental income: creates monthly spendable cashflow• High leverage: 75% LTV at historically low fixed rates• Loan Amortization: tenant’s pay down mortgage• Tax Benefits: depreciation over 39 years• Potential appreciation from rent increases and CAP rate compression Multi-Family - Denver
  • 119. Dallas, TexasIf Texas were a country, it would be the 11th largest economy in the world McKinney Apartments
  • 120. Top Economic Drivers in Dallas, TX1.Aerospace  Southwest Airlines / American Airlines  DFW Airport2.Oil / Natural Gas  Exon / Mobile / Ambit Energy3.Distribution Centers  Trucking / NAFTA Highway  Inland Port of Dallas / Heavy Rail: BNSF4.Manufacturing  Auto: General Motors / Toyota  Aerospace: Vought / Boeing / Bell Helicopter  Food: Frito Lay / Dr. Pepper / Snapple / Dean Foods5.Information Technology  ATT / Texas Instruments / Verizon / Radioshack / Affiliated Computer Services  Data storage6.Healthcare  Triad Hospitals / Baylor Health Care / Kimberly Clark7.Higher Education  University of North Texas / University of Texas Arlington / Southern Methodist McKinney Apartments
  • 121. Population InformationDallas-Fort worth is the 4th largest metro area in the nation with almost 7 million residents McKinney Apartments
  • 122. Location InformationMcKinney, TX ranked as 5th best places to live in America by CNN. It is one in one of the fastest growing counties in the country. McKinney Apartments
  • 123. “C Apartments in a B+ Area” Mckinney, TX McKinney Apartments
  • 124. Property Information 38 Units Five parcels of duplexes, fourplexes, and sixplexes 15,000 SF Diverse Unit Mix Consistent High Occupancy Redevelopment Potential McKinney Apartments
  • 125. Financial Information - AnnualizedPurchase Price: $1,200,000 Gross Rent: $264,480 7% Vacancy -$18,514 Management -$13,200 Property Taxes -$16,354 Insurance -$3,421 Maintenance -$35,850 Utilities / Misc -$44,378Net Operating Income $132,763 CAP Rate 11.1% McKinney Apartments
  • 126. Financing Information Purchase Price $1,200,000 Down Payment 35% Down Payment $420,000 Loan $780,000 Closing Costs $15,000Total Cash Invested $435,000 Interest Rate 5.5% Loan Term 25 yearsMonthly Payment -$4674 NOI $11,406 Seller financing available Cashflow $6,732Cash Throw Off 18.6% McKinney Apartments
  • 127. How can I make moneywith this property ?• Rental income: HUGE monthly spendable cashflow• Loan Amortization: tenant’s pay down mortgage• Tax Benefits: depreciation• Sell off each property separately for gain or reduce cash basis• Potential Rent Increases from housing shortage• Syndication opportunity• Redevelopment / expansion opportunity• Class C+ property in B+ area McKinney Apartments
  • 128. Dallas, TexasIf Texas were a country, it would be the 11th largest economy in the world McKinney Apartments
  • 129. Population InformationDallas-Fort worth is the 4th largest metro area in the nation with almost 7 million residents Paraiso Escondido - Dallas
  • 130. Location InformationDuncanville boasts highly desirable schools.Tens of thousands of jobs within 10 minutes. Paraiso Escondido - Dallas
  • 131. Top Local Employers AMERICAN LEATHER ARMY & AIR FORCE EXCHANGE SERVICE SOLO CUP COMPANY SWIFT TRANSPORTATION TEXWOOD INDUSTRIES INCUS POSTAL SERVICE DISTRIBUTION CENTER VA NORTH TEXAS HEALTH CARE SYSTEM Paraiso Escondido - Dallas
  • 132. “Bread and butter” David from Benicia, CA
  • 133. Property Information Single family home Built in ~2012 4 bed / 2 bath 1 car garage ~1,457 sq ft 10 yr builder warranty 6,000 sf lot Paraiso Escondido - Dallas
  • 134. Financial InformationPurchase Price: $115,000 Gross Rent: $1150 Vacancy -$69 Management -$108.10 Property Taxes -$239.58 Insurance -$55 Maintenance -$40 HOA / Misc $0Net Operating Income $638.32 CAP Rate 6.66% Paraiso Escondido - Dallas
  • 135. Financing Information Purchase Price $115,000 Down Payment 20% Down Payment $23,000 Loan $92,000 Closing Costs $5,000Total Cash Invested $28,000 Interest Rate 4.5% Loan Term 30 yearsMonthly Payment -$466.15 NOI $638.32 Cashflow $172.17Cash Throw Off 7.4% Paraiso Escondido - Dallas
  • 136. SPECIAL Financing Information Purchase Price $115,000 Down Payment 5% !! Down Payment $5,750 Loan $109,250 N ! W Closing Costs $5,000Total Cash Invested Interest Rate $10,750 4.5% D O Loan Term 30 years 5 %Monthly Payment -$553.55 NOI $638.32 Cashflow $84.77Cash Throw Off 9.5% Paraiso Escondido - Dallas
  • 137. How can I make moneywith this property ?• Rental income: creates monthly spendable cashflow• SUPER High leverage: 95% LTV at historically low fixed rates• Loan Amortization: tenant’s pay down mortgage• Tax Benefits: depreciation over 27.5 years• Resell to owner occupant when market strengthens• Potential Rent Increases from housing shortage: • population growth + restricted land supply + lack of new construction Paraiso Escondido - Dallas
  • 138. August 2012 Income Property ShowcaseIf you have interest in acquiring a property like the one presented here, please send an email to David@HasslefreeCashflowInvesting.com and we’ll send you access to the due diligence information for that property.