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5.0. EDSR 05-08-2000
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5.0. EDSR 05-08-2000
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City Government
type
EDSR
date
5/8/2000
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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 /> BUSINESS PLAN <br /> April 4, 2000 <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 /> Bank loan: <br /> $630,000 borrowed <br /> 20 year amortization at 93/4% equals $5,978.70 monthly <br /> $71,744.40 annually <br /> Miscellaneous expenses: <br /> Estimate $4,315.90 <br /> 0 10% return on investment: <br /> 10% of$12,859.70 equals $12,859.70 <br /> INCOME Monthly Annually <br /> Rental Rate $7,800 $93,600 <br /> 5% Vacancy Loss (390) (4,680) <br /> Net Income $7,410 $88,920 <br /> EXPENSES 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 /> RETURN ON INVESTMENT Monthly Annually <br /> 10% Return on $128,597 $1,072 $12,859 <br />
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