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Real Estate Investment Cash Flow Analysis

The document presents financial projections for an 11-year commercial real estate acquisition and financing. It shows acquisition costs, loan funding, annual net operating income, debt service payments, cash flows, loan payoffs, property values and rates of return. The unlevered internal rate of return is projected to be 9.2% and the levered IRR is projected to be 18.3%, with an equity multiple of 2.05x in both cases.

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nina9121
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100 views14 pages

Real Estate Investment Cash Flow Analysis

The document presents financial projections for an 11-year commercial real estate acquisition and financing. It shows acquisition costs, loan funding, annual net operating income, debt service payments, cash flows, loan payoffs, property values and rates of return. The unlevered internal rate of return is projected to be 9.2% and the levered IRR is projected to be 18.3%, with an equity multiple of 2.05x in both cases.

Uploaded by

nina9121
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Year 0 Year 1 Year 2 Year 3 Year 4

Acquisition Cost ($10,000,000) $0 $0 $0 $0


Loan Funding $7,500,000
Net Operating Income $650,000 $650,000 $689,585 $497,191
Debt Service ($429,674) ($429,674) ($429,674) ($429,674)
Cash Flow after Financing $220,326 $220,326 $259,911 $67,517

Loan Payof ($7,367,922) ($7,230,463) ($7,087,404) ($6,938,517)


Property Value $10,000,000 $10,609,000 $7,649,089 $9,566,825
Cap Rate 6.50% 6.50% 6.50% 6.50% 6.50%

Unlevered Cash Flow ($10,000,000) $650,000 $650,000 $689,585 $497,191


IRR 9.2%
Equity Multiple 2.05X

Levered Cash Flow ($2,500,000) $220,326 $220,326 $259,911 $67,517


IRR 18.3%
Equity Multiple 2.05X

IRR Matrix
Unlevered 0 1 2 3 4
IRR
1 6.50% ($10,000,000) $10,650,000 $0 $0 $0
2 9.41% ($10,000,000) $650,000 $11,259,000 $0 $0
3 -1.31% ($10,000,000) $650,000 $650,000 $8,338,674 $0
4 5.24% ($10,000,000) $650,000 $650,000 $689,585 $10,064,016
5 8.92% ($10,000,000) $650,000 $650,000 $689,585 $497,191
6 9.00% ($10,000,000) $650,000 $650,000 $689,585 $497,191
7 9.06% ($10,000,000) $650,000 $650,000 $689,585 $497,191
8 9.11% ($10,000,000) $650,000 $650,000 $689,585 $497,191
9 9.14% ($10,000,000) $650,000 $650,000 $689,585 $497,191
10 9.17% ($10,000,000) $650,000 $650,000 $689,585 $497,191

IRR Matrix
Levered 0 1 2 3 4
IRR
1 14.10% ($2,500,000) $2,852,404 $0 $0 $0
2 24.47% ($2,500,000) $220,326 $3,598,863 $0 $0
3 -23.50% ($2,500,000) $220,326 $220,326 $821,596 $0
4 8.98% ($2,500,000) $220,326 $220,326 $259,911 $2,695,825
5 20.32% ($2,500,000) $220,326 $220,326 $259,911 $67,517
6 19.87% ($2,500,000) $220,326 $220,326 $259,911 $67,517
7 19.44% ($2,500,000) $220,326 $220,326 $259,911 $67,517
8 19.04% ($2,500,000) $220,326 $220,326 $259,911 $67,517
9 18.68% ($2,500,000) $220,326 $220,326 $259,911 $67,517
10 18.34% ($2,500,000) $220,326 $220,326 $259,911 $67,517
Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
$0 $0 $0 $0 $0 $0

$621,844 $753,528 $776,134 $799,418 $823,401 $848,103 $873,546


($429,674) ($429,674) ($429,674) ($429,674) ($429,674) ($429,674)
$192,170 $323,854 $346,460 $369,744 $393,727 $418,429

($6,783,563) ($6,622,297) ($6,454,460) ($6,279,786) ($6,097,995) ($5,908,797)


$11,592,741 $11,940,523 $12,298,739 $12,667,701 $13,047,732 $13,439,164
6.50% 6.50% 6.50% 6.50% 6.50% 6.50%

$621,844 $753,528 $776,134 $799,418 $823,401 $14,287,266

$192,170 $323,854 $346,460 $369,744 $393,727 $7,948,796

5 6 7 8 9 10

$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$12,214,584 $0 $0 $0 $0 $0
$621,844 $12,694,051 $0 $0 $0 $0
$621,844 $753,528 $13,074,873 $0 $0 $0
$621,844 $753,528 $776,134 $13,467,119 $0 $0
$621,844 $753,528 $776,134 $799,418 $13,871,132 $0
$621,844 $753,528 $776,134 $799,418 $823,401 $14,287,266

5 6 7 8 9 10

$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$5,001,347 $0 $0 $0 $0 $0
$192,170 $5,642,080 $0 $0 $0 $0
$192,170 $323,854 $6,190,739 $0 $0 $0
$192,170 $323,854 $346,460 $6,757,659 $0 $0
$192,170 $323,854 $346,460 $369,744 $7,343,464 $0
$192,170 $323,854 $346,460 $369,744 $393,727 $7,948,796
Year 0 Year 1 Year 2 Year 3 Year 4
Acquisition Cost ($10,000,000) $0 $0 $0 $0
Loan Funding $7,500,000
Net Operating Income $650,000 $650,000 $689,585 $497,191
Debt Service ($429,674) ($429,674) ($429,674) ($429,674)
Cash Flow after Financing $220,326 $220,326 $259,911 $67,517

Loan Payof ($7,367,922) ($7,230,463) ($7,087,404) ($6,938,517)


Property Value $10,000,000 $10,609,000 $7,649,089 $9,566,825
Cap Rate 6.50% 6.50% 6.50% 6.50% 6.50%

Unlevered Cash Flow ($10,000,000) $650,000 $650,000 $689,585 $497,191


IRR 9.2%
Equity Multiple 2.05X

Levered Cash Flow ($2,500,000) $220,326 $220,326 $259,911 $67,517


IRR 18.3%
Equity Multiple 2.05X

IRR Matrix
Unlevered IRR 0 1 2 3 4
1
2
3
4
5
6
7
8
9
10

IRR Matrix
Levered IRR 0 1 2 3 4
1
2
3
4
5
6
7
8
9
10
Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
$0 $0 $0 $0 $0 $0

$621,844 $753,528 $776,134 $799,418 $823,401 $848,103 $873,546


($429,674) ($429,674) ($429,674) ($429,674) ($429,674) ($429,674)
$192,170 $323,854 $346,460 $369,744 $393,727 $418,429

($6,783,563) ($6,622,297) ($6,454,460) ($6,279,786) ($6,097,995) ($5,908,797)


$11,592,741 $11,940,523 $12,298,739 $12,667,701 $13,047,732 $13,439,164
6.50% 6.50% 6.50% 6.50% 6.50% 6.50%

$621,844 $753,528 $776,134 $799,418 $823,401 $14,287,266

$192,170 $323,854 $346,460 $369,744 $393,727 $7,948,796

5 6 7 8 9 10

5 6 7 8 9 10
Year 0 Year 1 Year 2 Year 3 Year 4
Acquisition Cost ($10,000,000) $0 $0 $0 $0
Loan Funding $7,500,000
Net Operating Income $650,000 $650,000 $689,585 $497,191
Debt Service ($429,674) ($429,674) ($429,674) ($429,674)
Cash Flow after Financing $220,326 $220,326 $259,911 $67,517

Loan Payof ($7,367,922) ($7,230,463) ($7,087,404) ($6,938,517)


Property Value $10,000,000 $10,609,000 $7,649,089 $9,566,825
Cap Rate 6.50% 6.50% 6.50% 6.50% 6.50%

Unlevered Cash Flow ($10,000,000) $650,000 $650,000 $689,585 $497,191


IRR 9.2%
Equity Multiple 2.05X

Levered Cash Flow ($2,500,000) $220,326 $220,326 $259,911 $67,517


IRR 18.3%
Equity Multiple 2.05X

IRR Matrix
Unlevered IRR 0 1 2 3 4
1
2
3
4
5
6
7
8
9
10

IRR Matrix
Levered IRR 0 1 2 3 4
1
2
3
4
5
6
7
8
9
10
Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
$0 $0 $0 $0 $0 $0

$621,844 $753,528 $776,134 $799,418 $823,401 $848,103 $873,546


($429,674) ($429,674) ($429,674) ($429,674) ($429,674) ($429,674)
$192,170 $323,854 $346,460 $369,744 $393,727 $418,429

($6,783,563) ($6,622,297) ($6,454,460) ($6,279,786) ($6,097,995) ($5,908,797)


$11,592,741 $11,940,523 $12,298,739 $12,667,701 $13,047,732 $13,439,164
6.50% 6.50% 6.50% 6.50% 6.50% 6.50%

$621,844 $753,528 $776,134 $799,418 $823,401 $14,287,266

$192,170 $323,854 $346,460 $369,744 $393,727 $7,948,796

5 6 7 8 9 10

5 6 7 8 9 10
Year 0 Year 1 Year 2 Year 3 Year 4
Acquisition Cost ($10,000,000) $0 $0 $0 $0
Loan Funding $7,500,000
Net Operating Income $650,000 $650,000 $689,585 $497,191
Debt Service ($429,674) ($429,674) ($429,674) ($429,674)
Cash Flow after Financing $220,326 $220,326 $259,911 $67,517

Loan Payof ($7,367,922) ($7,230,463) ($7,087,404) ($6,938,517)


Property Value $10,000,000 $10,609,000 $7,649,089 $9,566,825
Cap Rate 6.50% 6.50% 6.50% 6.50% 6.50%

Unlevered Cash Flow ($10,000,000) $650,000 $650,000 $689,585 $497,191


IRR 9.2%
Equity Multiple 2.05X

Levered Cash Flow ($2,500,000) $220,326 $220,326 $259,911 $67,517


IRR 18.3%
Equity Multiple 2.05X

IRR Matrix
Unlevered IRR 0 1 2 3 4
1
2
3
4
5
6
7
8
9
10

IRR Matrix
Levered IRR 0 1 2 3 4
1
2
3
4
5
6
7
8
9
10
Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
$0 $0 $0 $0 $0 $0

$621,844 $753,528 $776,134 $799,418 $823,401 $848,103 $873,546


($429,674) ($429,674) ($429,674) ($429,674) ($429,674) ($429,674)
$192,170 $323,854 $346,460 $369,744 $393,727 $418,429

($6,783,563) ($6,622,297) ($6,454,460) ($6,279,786) ($6,097,995) ($5,908,797)


$11,592,741 $11,940,523 $12,298,739 $12,667,701 $13,047,732 $13,439,164
6.50% 6.50% 6.50% 6.50% 6.50% 6.50%

$621,844 $753,528 $776,134 $799,418 $823,401 $14,287,266

$192,170 $323,854 $346,460 $369,744 $393,727 $7,948,796

5 6 7 8 9 10

5 6 7 8 9 10
0 1 2 3 4
Acquisition Cost (10,000,000)
Loan Funding 7,500,000
NOI 650,000 669,500 689,585 497,191
Debt Service (429,674) (429,674) (429,674) (429,674)
Cash Flow after Financing 220,326 239,826 259,911 67,517

Loan Payof (7,367,922) (7,230,463) (7,087,404) (6,938,517)


Property Value 10,300,000 10,609,000 7,649,089 9,566,825
Cap Rate 6.5% 6.5% 6.5% 6.5%

Unlevered CF (10,000,000) 650,000 669,500 689,585 497,191


IRR 9.2%
Equity Multiple 2.06x

Levered CF (2,500,000) 220,326 239,826 259,911 67,517


IRR 18.4%
Equity Multiple 2.06x
5 6 7 8 9 10 11

621,844 753,528 776,134 799,418 823,401 848,103 873,546


(429,674) (429,674) (429,674) (429,674) (429,674) (429,674)
192,170 323,854 346,460 369,744 393,727 418,429

(6,783,563) (6,622,297) (6,454,460) (6,279,786) (6,097,995) (5,908,797)


11,592,741 11,940,523 12,298,739 12,667,701 13,047,732 13,439,164
6.5% 6.5% 6.5% 6.5% 6.5% 6.5%

621,844 753,528 776,134 799,418 823,401 14,287,266

192,170 323,854 346,460 369,744 393,727 7,948,796


Year 0 Year 1 Year 2 Year 3 Year 4
Acquisition Cost ($10,000,000) $0 $0 $0 $0
Loan Funding $7,500,000
Net Operating Income $650,000 $650,000 $689,585 $497,191
Debt Service ($429,674) ($429,674) ($429,674) ($429,674)
Cash Flow after Financing $220,326 $220,326 $259,911 $67,517

Loan Payof ($7,367,922) ($7,230,463) ($7,087,404) ($6,938,517)


Property Value $10,000,000 $10,609,000 $7,649,089 $9,566,825
Cap Rate 6.50% 6.50% 6.50% 6.50% 6.50%

Unlevered Cash Flow ($10,000,000) $650,000 $650,000 $689,585 $497,191


IRR 9.2%
Equity Multiple 2.05X

Levered Cash Flow ($2,500,000) $220,326 $220,326 $259,911 $67,517


IRR 18.3%
Equity Multiple 2.05X

IRR Matrix
Unlevered IRR 0 1 2 3 4
1
2
3
4
5
6
7
8
9
10

IRR Matrix
Levered IRR 0 1 2 3 4
1
2
3
4
5
6
7
8
9
10
Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
$0 $0 $0 $0 $0 $0

$621,844 $753,528 $776,134 $799,418 $823,401 $848,103 $873,546


($429,674) ($429,674) ($429,674) ($429,674) ($429,674) ($429,674)
$192,170 $323,854 $346,460 $369,744 $393,727 $418,429

($6,783,563) ($6,622,297) ($6,454,460) ($6,279,786) ($6,097,995) ($5,908,797)


$11,592,741 $11,940,523 $12,298,739 $12,667,701 $13,047,732 $13,439,164
6.50% 6.50% 6.50% 6.50% 6.50% 6.50%

$621,844 $753,528 $776,134 $799,418 $823,401 $14,287,266

$192,170 $323,854 $346,460 $369,744 $393,727 $7,948,796

5 6 7 8 9 10

5 6 7 8 9 10

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