Cash Flow Analysis: The following are highlights from the Hogan Building's 5 Year CFAW. The complete CFAW is available upon request. Just leave a comment with the e-mail address where it should be sent.
Initial Equity Investment: $464,897.98
Mortgage Amount: $1,315,749
Terms: 7% interest rate / 15-yr Term & Amort / 2% Loan Fees
Potential Rental Income: $393,600 (Yr 1); $405,408 (Yr 2); $417,570 (Yr 3); $430,097 (Yr 4); $443,000 (Yr 5)
Vacancy Rate: 12% (Yr 1); 5% (Yr 2 - 5)
Operating Expenses: 49.5% of Gross Operating Income
NOI: $181,228 (Yr 1); $200,996 (Yr 2); $207,026 (Yr 3); $213,237 (Yr 4); $219,634 (Yr 5)
Sale Price EOY 5: $1,500,000
| Internal Rate of Return | Before Tax IRR | After Tax IRR |
| Initial Investment | -$464,897.98 | -$464,897.98 |
| Cash Flow Year 1 | $39,312.45 | $27,566.53 |
| Cash Flow Year 2 | $59,080.48 | $41,919.56 |
| Cash Flow Year 3 | $65,110.37 | $45,445.06 |
| Cash Flow Year 4 | $71,321.15 | $49,034.17 |
| Cash Flow Year 5 | $398,417.77 | $374,637.58 |
| Internal Rate of Return | 7.8507% | 3.501% |
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