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LOCATION OVERVIEW

$ 237,000

5477 Riverstone Dr. Memphis TN 38125

Construction Type: New
Year Built: Not Yet Completed
Monthly Rent: $ 1,650
10 Yr Avg. CoC: 5.8%
10 Year IRR: 7.6%
First Year CF: $ 12,143
Cap Rate: 5.1%
2127 sf 4 3
Homes located in this zip code are located within close proximity to Windyke Country Club, multiple churches and Mike Rose Soccer Complex; a 136 acre facility with 16 fields and a stadium, with a lake and picnic area. They are also near Fedex World Headquarters which employees over 3,000 Memphians at their 1.1 million square foot campus.

RETURN CALCULATOR

Perform your own sensitivity analysis by adjusting the parameters below to see how they can affect your return

Vacancy Rate (% GSI)
Maintenance Rate (% GOI)
Property Mgmt Rate (% GOI)
Property Appreciation Rate (%)
Rent Appreciation Rate (%)
Expense Inflation Rate (%)
Sales Cost Rate (% of Price)
Interest Rate (%)
PROPERTY INPUTS
Down Payment % Down Payment $ Est. Closing Costs Est. Total Investment Est. Monthly Rent Gross Annual Rent PM Fee Property Taxes Est. Property Insurance HOA Fees Maintenance Allowance Debt Service
20% $ 47,400 $ 4,717 $ 52,117 $ 1,650 $ 19,800 ($ 1,861) ($ 2,404) ($ 750) ($ 387) ($ 1,188) $ 11,528
Economic Modeling Assumptions

Interest Rate: 4.5%

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Vacancy Rate (% GSI) 6% 6% 6% 6% 6% 6% 6% 6% 6% 6%
Maintenance Rate (% GOI) 6% 6% 6% 6% 6% 6% 6% 6% 6% 6%
Property Mgmt Rate (% GOI) 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
Property Appreciation Rate 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5%
Rent Appreciation Rate 3% 3% 3% 3% 3% 3% 3% 3% 3% 3%
Expense Inflation Rate 3% 3% 3% 3% 3% 3% 3% 3% 3% 3%
Sales Cost Rate (% of Price) N/AN/AN/AN/AN/AN/AN/AN/AN/A 9%
Cash Flow and Property Value Projections

Average Days Vacant Per Year/Per Home : 22

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Gross Annual Rent $ 19,800 $ 20,394 $ 21,006 $ 21,636 $ 22,285 $ 22,954 $ 23,642 $ 24,352 $ 25,082 $ 25,835
Vacancy Allowance ($ 1,188) ($ 1,224) ($ 1,260) ($ 1,298) ($ 1,337) ($ 1,377) ($ 1,419) ($ 1,461) ($ 1,505) ($ 1,550)
Property Management ($ 1,861) ($ 1,917) ($ 1,975) ($ 2,034) ($ 2,095) ($ 2,158) ($ 2,222) ($ 2,289) ($ 2,358) ($ 2,428)
Property Taxes ($ 2,404) ($ 2,476) ($ 2,550) ($ 2,627) ($ 2,706) ($ 2,787) ($ 2,871) ($ 2,957) ($ 3,045) ($ 3,137)
Est. Property Insurance ($ 750) ($ 772) ($ 796) ($ 820) ($ 844) ($ 869) ($ 896) ($ 922) ($ 950) ($ 979)
HOA Fees ($ 387) ($ 399) ($ 411) ($ 423) ($ 436) ($ 449) ($ 462) ($ 476) ($ 490) ($ 505)
Maintenance Allowance ($ 1,117) ($ 1,150) ($ 1,185) ($ 1,220) ($ 1,257) ($ 1,295) ($ 1,333) ($ 1,373) ($ 1,415) ($ 1,457)
Debt Service ($ 11,528) ($ 11,528) ($ 11,528) ($ 11,528) ($ 11,528) ($ 11,528) ($ 11,528) ($ 11,528) ($ 11,528) ($ 11,528)
Before Tax Cash Flow $ 565 $ 928 $ 1,301 $ 1,686 $ 2,083 $ 2,491 $ 2,912 $ 3,345 $ 3,791 $ 4,251
Ending Property Value $ 245,295 $ 253,880 $ 262,766 $ 271,963 $ 281,482 $ 291,334 $ 301,530 $ 312,084 $ 323,007 $ 334,312
10- Year Cash Flows

Average Maint Expense Per Year/Per Home : ($ 649)

Initial Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Down Payment ($ 47,400)
Closing Costs ($ 4,717)
Annual Cash Flow $ 565 $ 928 $ 1,301 $ 1,686 $ 2,083 $ 2,491 $ 2,912 $ 3,345 $ 3,791 $ 4,251
Appreciation $ 97,312
Debt Paydown $ 37,750
Return of Down Payment $ 47,400
Sales Costs $ 30,088
Net Cash Flows ($ 52,117) $ 565 $ 928 $ 1,301 $ 1,686 $ 2,083 $ 2,491 $ 2,912 $ 3,345 $ 3,791 $ 156,625
TOTAL CF :

$ 23,353

AVG CF/YR :

$ 2,335

PROPERTY INPUTS
Down Payment % Down Payment $ Est. Closing Costs Est. Total Investment Est. Monthly Rent Gross Annual Rent PM Fee Property Taxes Est. Property Insurance HOA Fees Maintenance Allowance Debt Service
100% $ 237,000 $ 2,607 $ 239,607 $ 1,650 $ 19,800 ($ 1,861) ($ 2,404) ($ 750) ($ 387) ($ 1,188) $ 0
Economic Modeling Assumptions

Interest Rate:4.5 %

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Vacancy Rate (% GSI) 6% 6% 6% 6% 6% 6% 6% 6% 6% 6%
Maintenance Rate (% GOI) 6% 6% 6% 6% 6% 6% 6% 6% 6% 6%
Property Mgmt Rate (% GOI) 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
Property Appreciation Rate 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5%
Rent Appreciation Rate 3% 3% 3% 3% 3% 3% 3% 3% 3% 3%
Expense Inflation Rate 3% 3% 3% 3% 3% 3% 3% 3% 3% 3%
Sales Cost Rate (% of Price) N/AN/AN/AN/AN/AN/AN/AN/AN/A 9%
Cash Flow and Property Value Projections

Average Days Vacant Per Year/Per Home : 22

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Gross Annual Rent $ 19,800 $ 20,394 $ 21,006 $ 21,636 $ 22,285 $ 22,954 $ 23,642 $ 24,352 $ 25,082 $ 25,835
Vacancy Allowance ($ 1,188) ($ 1,224) ($ 1,260) ($ 1,298) ($ 1,337) ($ 1,377) ($ 1,419) ($ 1,461) ($ 1,505) ($ 1,550)
Property Management ($ 1,861) ($ 1,917) ($ 1,975) ($ 2,034) ($ 2,095) ($ 2,158) ($ 2,222) ($ 2,289) ($ 2,358) ($ 2,428)
Property Taxes ($ 2,404) ($ 2,476) ($ 2,550) ($ 2,627) ($ 2,706) ($ 2,787) ($ 2,871) ($ 2,957) ($ 3,045) ($ 3,137)
Est. Property Insurance ($ 750) ($ 772) ($ 796) ($ 820) ($ 844) ($ 869) ($ 896) ($ 922) ($ 950) ($ 979)
HOA Fees ($ 387) ($ 399) ($ 411) ($ 423) ($ 436) ($ 449) ($ 462) ($ 476) ($ 490) ($ 505)
Maintenance Allowance ($ 1,117) ($ 1,150) ($ 1,185) ($ 1,220) ($ 1,257) ($ 1,295) ($ 1,333) ($ 1,373) ($ 1,415) ($ 1,457)
Debt Service $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Before Tax Cash Flow $ 12,093 $ 12,456 $ 12,830 $ 13,214 $ 13,611 $ 14,019 $ 14,440 $ 14,873 $ 15,319 $ 15,779
Ending Property Value $ 245,295 $ 253,880 $ 262,766 $ 271,963 $ 281,482 $ 291,334 $ 301,530 $ 312,084 $ 323,007 $ 334,312
10- Year Cash Flows

Average Maint Expense Per Year/Per Home : ($ 649)

Initial Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Down Payment ($ 237,000)
Closing Costs ($ 2,607)
Annual Cash Flow $ 12,093 $ 12,456 $ 12,830 $ 13,214 $ 13,611 $ 14,019 $ 14,440 $ 14,873 $ 15,319 $ 15,779
Appreciation $ 97,312
Debt Paydown $ 0
Return of Down Payment $ 237,000
Sales Costs $ 30,088
Net Cash Flows ($ 239,607) $ 12,093 $ 12,456 $ 12,830 $ 13,214 $ 13,611 $ 14,019 $ 14,440 $ 14,873 $ 15,319 $ 320,003
TOTAL CF :

$ 138,634

AVG CF/YR :

$ 13,863

DISCLAIMER: The calculations and data presented herein are deemed to be accurate, but accuracy is not guaranteed. The projected pro forma returns on investment are intended for the purpose of illustrative projections to facilitate analysis and are not guaranteed by Meridian Pacific Properties, Inc. or its affiliates and subsidiaries. The information provided herein is not intended to replace or serve as a substitute for any legal, real estate, tax, or other professional advice, consultation or service. The prospective buyer should consult with a professional in the respective legal, tax, accounting, real estate, or other professional area before making any decisions or entering into any contracts pertaining to the property or properties described herein.