Friday Harbour for Investors
See Investor Online Reports Below
Sample of 5-Min Property Analysis™ for Investor Clients
2Bed, 2Wash , 750SF Priced at $720K - 6 Month Rental Plan (in Off-Season)
Assumptions
| Rental Period |
6 months - Apr-Nov |
Rental Avg/Mth |
$3,133 |
| Vacancy |
20% |
Rental Avg/YR |
$18,800 |
| Mortgage Down |
30% |
Interest Rate |
2.44% |
| Mortgage Amort |
25 Yrs |
Condo Initial Value |
$720K |
| Cost Inflation |
2% |
Rent increase |
4%/yr |
| Market Appreciation |
10% |
Property Mgt |
Self |
| Housecleaning |
tbd |
Lake Fees |
Suspend during rental |
|
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year 5
|
|
Rental Income (based on 6 months of rental in Off-Season - Nov-Apr)
|
18,800
|
19,552
|
20,334
|
21,147
|
21993
|
|
Less Vacancy/Bad Debt at 20%
|
3,760
|
3,910
|
4,067
|
4,229
|
4,399
|
|
Gross Operating Income
|
15,040
|
15,642
|
16,267
|
16,918
|
17,595
|
|
Expenses
|
|
|
|
|
|
|
Property Taxes
(0.50% of Purchase Price)
|
3,600
|
3,672
|
3,745
|
3,820
|
3,897
|
|
Condo Fees - $.63 per SF +HST
|
6,407
|
6,535
|
6,666
|
6,799
|
6,935
|
|
Resort Association Fees $1.60/SF +HST
|
1,356
|
1,383
|
1,411
|
1,439
|
1,468
|
|
Lake Club Fee (suspended for rental period) - 6 mths
|
846
|
863
|
880
|
898
|
916
|
|
Utilities (metered and paid by tenant during tenancy)
|
750
|
765
|
780
|
796
|
812
|
| Insurance |
480 |
490 |
499 |
509 |
520 |
|
Internet & Sec Monitor - incl in Condo Fees
|
|
|
|
|
|
|
Property Management Fee (not used)
|
|
|
|
|
|
|
Repairs, Supplies
|
1,200
|
1,224
|
1,248
|
1,273
|
1,299
|
| Cleaning Services |
tbd |
tbd |
tbd |
tbd |
tbd |
|
Total Expenses
|
14,639
|
12,534
|
12,784
|
13,040
|
13,301
|
| |
|
|
|
|
|
|
Net Operating Income (NOI)
|
401
|
3,108
|
3,483
|
3,878
|
4,294
|
|
less Mortgage Payments
30% Down, 2.44% , 25 Years
|
26,950
|
26,950
|
26,950
|
23,142
|
23,142
|
|
Cash Flow (CF) - This Year Negative if Red
|
(26,549)
|
(26,240)
|
(25,913)
|
(25,567)
|
(25,201)
|
|
Cash Flow (CF) - Accumulated
|
(26,549) |
(52,789) |
(78,702) |
(104,270) |
(129,471) |
|
Annual Market Appreciation
|
72,000
|
79,200
|
87,120
|
95,832
|
105,415
|
| Accumulated Market Appreciation |
72,000 |
151,200 |
238,320 |
334,152 |
439,567 |
|
CF (this Yr) + Appreciation
|
45,451
|
52,960
|
61,207
|
70,265
|
80,214
|
|
Condo Market Value - 10%/yr
|
792,000
|
871,200
|
958,320
|
1,054,152
|
1,159,567
|
| Selling Costs (Realty + Legal) @5.25% +HST |
47,000 |
52,000 |
57,000 |
63,000 |
69,000 |
| Gross Profit on Sale |
745,000 |
820,000 |
901,000 |
992,000 |
1,091,000 |
| Mortgage Owed Originally |
504,000 |
504,000 |
504,000 |
504,000 |
504,000 |
| Accumulated Mortgage Paydown |
14,817 |
30,000 |
45,558 |
61,499 |
77,834 |
|
Mortgage Balance
|
489,183
|
474,000
|
458,442
|
442,501
|
426,166
|
|
Net Profit on Sale after Mortgage Paid
|
255,817 |
346,000 |
442,558 |
549,499 |
664,834 |
| Plus: Get Downpayment Back |
216,000 |
216,000 |
216,000 |
216,000 |
216,000 |
| Accumulated Negative Cash Flow (Operational Loss) |
26,549 |
52,789 |
78,702 |
104,270 |
129,471 |
| Net Profit minus Cash Flow |
229,268 |
307,910 |
395,064 |
491,526 |
598,156 |
CAUTION: These data are for illustrative purposes only. You must verify for your specific needs.
Clients Receive this Analysis for their Condos of Interest
See My YouTube Video on 5-Min Property Analysis™ for Investors*
*Developed and Owned by Dennis Paradis, All Rights Reserved
What Does All This Data Suggest?
- You could enjoy the use of a 2-Bed condo at Friday Harbour for 6-Months per year during Prime Season for 5 years and pay about 26,000 per year in Cash Out per year or 129,471 over 5 years (see 5th year column above) . Assumes you use condo for yourself in Peak season, eg; May-Oct and rent during rest of year (Nov-Apr).
- This means at the end of 5 years, your Mortgage Paydown (MPD) of 77,834 and 10% Market Appreciation of 439,567, totalling $517,567, would pay for a negative Cash Flow of 129,471 and after Selling Expenses of about $69,000 , you would still be ahead almost $600,000 in Net Proceeds before Tax.
- In other words, you get to use the unit FREE for 6-months during Peak Season (not counting personal and entertainment costs), and make a Profit on your sale of $600,000 before tax at the end of the fifth year.
- 5% Market Appreciation (not shown here) would have a total of $200,000 + MPD of $78,000 for a Total of $278,000 and still be ahead after Selling Expenses of about $46,000 by about $372,000 if you sold in 5 years.
- Use this data as a guide but remember results are not guaranteed. You must do your own due diligence based on your best judgement.
- Key Assumption is Market Appreciation.
Call Dennis Paradis at 416-399-5832
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