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4.2. SR 05-22-2000
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4.2. SR 05-22-2000
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5/22/2000
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R & W ENTERPRISES, L.L.C. <br /> P. O. Box 368 <br /> Elk River, Minnesota 55330-0368 <br />Telephone: 763/441-4112 Fax: 763/441-5176 <br /> <br />BUSINESS PLAN <br /> <br />April 4, 2000 <br /> <br />Triple net leases to average $5 per square foot: <br /> 18720 square feet at $5 equals $93,600 <br /> 5% vacancy loss (4680) <br /> Annual income $88,920 <br /> <br />Bank loan: <br /> $630,000 borrowed <br /> 20 year amortization at 9%% equals <br /> <br />Miscellaneous expenses: <br /> Estimate <br /> <br />$5,978.70 monthly <br />$71,744.40 annually <br /> <br />$4,315.90 <br /> <br />10% return on investment: <br /> 10% of $12,859.70 equals <br /> <br />$12,859.70 <br /> <br />INCOME <br /> <br /> Monthly Annually <br />Rental Rate $7,800 $93,600 <br />5% Vacancy Loss (390) (4,680) <br />Net Income $7,410 $88,920 <br /> <br />EXPENSES <br /> <br /> Monthly Annually <br />Bank Loan $5,979 $71,744 <br />· Note <br />Interest only during 18 months <br />Lease up 5,119 61,425 <br />Miscellaneous Exp. 360 4,316 <br />Net Expenses $5,619 $67,428 <br /> <br />RETURN ON INVESTMENT Monthly <br /> 10% Return on $128,597 $1,072 <br /> <br />Annually <br /> <br />$12,859 <br /> <br /> <br />
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