$890800 NDIS Bookfield: Lot 321 Sumac St. , Brookfield 3338, AU

Lot 321 Sumac St. Everton Estate, Brookfield, 3338

Commercial (Special-Purpose): 3 rooms: 3 bedrooms , 3 bathrooms

Year built: 2023, Size: 207 SM

Investment strategy: Rental Property

The information presented in this presentation regarding the rental potential of National Disability Insurance Scheme (NDIS) Specialist Disability Accommodation (SDA) is intended for informational purposes only and should not be construed as financial, legal, or investment advice. Investment in NDIS SDA properties carries inherent risks, and individual circumstances can greatly impact rental potential. We strongly advise consulting with qualified professionals, including financial advisors, legal experts, and real estate professionals, to assess the suitability of NDIS SDA investments for your specific situation. We disclaim any responsibility for decisions made based on the information provided in this presentation.

Purchase Price$ 890,800

Rent$ 16,268/mo

Monthly Cash Flow$ 7,651

Cash on Cash Return64.92 %

Financial Analysis

Cash on Cash Return	64.92 %
Internal Rate of Return (IRR)	67.50 %
Capitalization Rate	18.60 %
Gross Rent Multiplier (GRM)	4.56
Debt-coverage Ratio (DCR)	2.24
Operating Expense Ratio (OER)	10.66 %

Financial Breakdown

Purchase Price	$ 890,800
Purchase Costs	$ 52,349
Repair/Construction Costs	$ 0
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 943,149
Financing	$ 801,720
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 141,429
Cash at Closing Cash at Closing This number includes down payment and loan points. Cash at Closing This number includes down payment and loan points.	$ 89,080
Cash During Rehab Cash During Rehab Shows the cash amount remaining to fund the purchase and rehab/construction. Cash During Rehab Shows the cash amount remaining to fund the purchase and rehab/construction.	$ 52,349

Operating Analysis

Rent	$ 16,268/mo
Gross Operating Income (GOI)	$ 185,455
Total Expenses	$ 19,768
Net Operating Income (NOI)	$ 165,687
Annual Debt Service	$ 73,872
Cash Flow Before Taxes (CFBT)	$ 91,815
Income Tax Liability	$ 0
Cash Flow After Taxes (CFAT)	$ 91,815

Suitable for 2 SDA Participants with Overnight Carer Accommodation

Purchase Price	$ 890,800
Address	Lot 321 Sumac St. Everton Estate, Brookfield, 3338, AU
Year Built	2023
Type	Commercial
Category	Special-Purpose
Size	207 SM
Bedrooms	3
Bathrooms	3
Rooms Total	3

Annual Property Operating Data

Incomes		% of GOI
Gross Scheduled Income Gross Scheduled Income (GSI) Represents the total of monthly rents for the particular property, including the potential rents from vacant units and uncollectable rents. Gross Scheduled Income (GSI) Represents the total of monthly rents for the particular property, including the potential rents from vacant units and uncollectable rents.	$ 195,216
Total Gross Income	$ 195,216
Vacancy loss Vacancy and Credit Loss Part of the potential rental income that is lost because of unoccupied units or uncollectable rent from tenants. Vacancy and Credit Loss Part of the potential rental income that is lost because of unoccupied units or uncollectable rent from tenants.	$ 9,761
Gross Operating Income Gross Operating Income (GOI) An actual income which is expected to be collected in the property. Gross Operating Income (GOI) An actual income which is expected to be collected in the property.	$ 185,455	100.00 %
Expenses Operating Expenses Expenses necessary for maintaining the property and ensuring its continued ability to produce income (doesn't include mortgage payments or depreciation). Operating Expenses Expenses necessary for maintaining the property and ensuring its continued ability to produce income (doesn't include mortgage payments or depreciation).
SDA Provider	$ 6,600	3.56 %
Council Rates	$ 2,500	1.35 %
Insurance (comm)	$ 2,500	1.35 %
Water supply	$ 750	0.40 %
Misc maintenance	$ 7,418	4.00 %
Total Expenses	$ 19,768	10.66 %
Net Operating Income Net Operating Income (NOI) Important measurement calculated as gross operating income minus operating expenses. Net Operating Income (NOI) Important measurement calculated as gross operating income minus operating expenses.	$ 165,687	89.34 %

Cash Flow (Year 1)

Net Operating Income	$ 165,687	89.34 %
Annual Debt Service	$ 73,872	39.83 %
Cash Flow Before Taxes (CFBT) Cash Flow All the inflows and outflows of cash for a certain property (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property. Cash Flow All the inflows and outflows of cash for a certain property (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property.	$ 91,815	49.51 %
Income Tax Liability	$ 0	0.00 %
Cash Flow After Taxes (CFAT) Cash Flow All the inflows and outflows of cash (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property. Cash Flow All the inflows and outflows of cash (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property.	$ 91,815	49.51 %

Operating Ratios

Operating Expense Ratio Operating Expense Ratio Ratio of the operating expenses to the gross operating income (GOI). Operating Expense Ratio Ratio of the operating expenses to the gross operating income (GOI).	10.66 %
Break-Even Ratio Break-Even Ratio (BER) Another benchmark used by mortgage lenders, estimating how vulnerable is a certain property to defaulting on its mortgage if part of the rental income is declined. Most of the lenders are looking for BER of 85% or less. Break-Even Ratio (BER) Another benchmark used by mortgage lenders, estimating how vulnerable is a certain property to defaulting on its mortgage if part of the rental income is declined. Most of the lenders are looking for BER of 85% or less.	50.49 %

Financial Measures

Net Present Value Net Present Value (NPV) Probably the best measure of any investment thanks to its complexity; taking into account all future cash flows including the selling price, and it converts all these amounts to their present values using discount rate required by the investor. More information and an example on the blog. Net Present Value (NPV) Probably the best measure of any investment thanks to its complexity; taking into account all future cash flows including the selling price, and it converts all these amounts to their present values using discount rate required by the investor. More information and an example on the blog.	$ 2,013,681
Internal Rate of Return Internal Rate of Return (IRR) Rate which an investment will return over the estimated period of ownership. It is in fact the discount rate that produces NPV of zero. Internal Rate of Return (IRR) Rate which an investment will return over the estimated period of ownership. It is in fact the discount rate that produces NPV of zero.	67.50 %
Profitability Index Profitability Index Similar to NPV, also calculates with the present values of future cash flows and discount rate. It shows whether the present value of the cash flows is worth the initial investment. Good investment should be above 1.0 Profitability Index Similar to NPV, also calculates with the present values of future cash flows and discount rate. It shows whether the present value of the cash flows is worth the initial investment. Good investment should be above 1.0	15.24
Annual Depreciation	$ 15,989

Holding period of 20 years and discount rate of 5.00% were used for calculation of NPV and IRR. The rest of the financial measures are for the 1st year only and therefore don't provide such an exact information.

Investment Return Ratios

Cash on Cash Return Cash on Cash Return Ratio between annual cash flow before taxes and the total initial investment, expressed as a percentage. It does not take in account the future value of money. Cash on Cash Return Ratio between annual cash flow before taxes and the total initial investment, expressed as a percentage. It does not take in account the future value of money.	64.92 %
Return on Investment Return on Investment Very similar to Cash on Cash Return, but also takes in account appreciation of the property in the first year. Return on Investment Very similar to Cash on Cash Return, but also takes in account appreciation of the property in the first year.	96.41 %
Capitalization Rate Capitalization Rate Calculated as ratio of the net operating income and the value of the property. Capitalization Rate Calculated as ratio of the net operating income and the value of the property.	18.60 %
Gross Rental Yield Gross Rental Yield Used for a particular property or also as a market indicator when using median values of rent and house prices - counted from gross scheduled rent and initial investment. Gross Rental Yield Used for a particular property or also as a market indicator when using median values of rent and house prices - counted from gross scheduled rent and initial investment.	21.91 %
Gross Rent Multiplier Gross Rent Multiplier (GRM) Counted as a ratio of market value of the property and gross scheduled income. Gross Rent Multiplier (GRM) Counted as a ratio of market value of the property and gross scheduled income.	4.56

Financing
Down Payment		$ 89,080
NDIS		$ 801,720
Loan to Value Ratio Loan to Value Ratio Shows sum of all purchase and rehab loans divided by purchase price. Loan to Value Ratio Shows sum of all purchase and rehab loans divided by purchase price.		90.00 %
Loan to Cost Ratio Loan to Cost Ratio Shows sum of all purchase and rehab loans to construction cost (purchase price + repairs). Loan to Cost Ratio Shows sum of all purchase and rehab loans to construction cost (purchase price + repairs).		90.00 %
Debt Coverage Ratio		2.24

NDIS Financing of: Purchase price ($ 890,800)
Type	Amortized
Loan Amount	$ 801,720
Down payment (10%)	$ 89,080
Amortization	25 years
Interest Rate	7.94 %
Monthly Payment	$ 6,155.97

This chart shows the process of accumulation of investor's equity. There is some equity created right at the beginning with the rehab/construction and later investor's equity is rising by paying off the principal of the loan and also by appreciation over the years. All the green parts is the cummulative equity belonging to the investor and the red part belongs to the lender.

Year	0	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20
Operational Analysis
Gross Scheduled Income	0	195,216	198,144	201,116	204,133	207,195	210,303	213,458	216,659	219,909	223,208	226,556	229,954	233,404	236,905	240,458	244,065	247,726	251,442	255,214	259,042
Vacancy Loss	0	9,761	9,907	10,056	10,207	10,360	10,515	10,673	10,833	10,995	11,160	11,328	11,498	11,670	11,845	12,023	12,203	12,386	12,572	12,761	12,952
Gross Operating Income	0	185,455	188,237	191,061	193,926	196,835	199,788	202,785	205,827	208,914	212,048	215,228	218,457	221,734	225,060	228,436	231,862	235,340	238,870	242,453	246,090
Expenses	0	19,768	20,164	20,567	20,978	21,398	21,826	22,262	22,707	23,162	23,625	24,097	24,579	25,071	25,572	26,084	26,605	27,138	27,680	28,234	28,799
Net Operating Income	0	165,687	168,073	170,494	172,948	175,438	177,962	180,523	183,119	185,752	188,423	191,131	193,877	196,663	199,487	202,352	205,257	208,202	211,190	214,219	217,291
Loan Payment	0	73,872	73,872	73,872	73,872	73,872	73,872	73,872	73,872	73,872	73,872	73,872	73,872	73,872	73,872	73,872	73,872	73,872	73,872	73,872	73,872
Payment Interest Part	0	63,277	62,404	61,460	60,437	59,331	58,133	56,837	55,435	53,916	52,273	50,494	48,569	46,485	44,229	41,788	39,146	36,286	33,191	29,841	26,215
Payment Principal Part	0	10,595	11,468	12,412	13,434	14,541	15,738	17,034	18,437	19,956	21,599	23,378	25,303	27,387	29,642	32,083	34,726	37,585	40,681	44,031	47,657
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-141,429	91,815	94,202	96,622	99,077	101,566	104,091	106,651	109,247	111,881	114,551	117,259	120,006	122,791	125,616	128,480	131,385	134,331	137,318	140,348	143,420
Depreciation	0	15,989	15,989	15,989	15,989	15,989	15,989	15,989	15,989	15,989	15,989	15,989	15,989	15,989	15,989	15,989	15,989	15,989	15,989	15,989	15,989
Taxes	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Cash Flow After Taxes	-141,429	91,815	94,202	96,622	99,077	101,566	104,091	106,651	109,247	111,881	114,551	117,259	120,006	122,791	125,616	128,480	131,385	134,331	137,318	140,348	143,420

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 20 years. Below is the resale price calculated using different methods.

Appreciation (5.00%)	$ 2,363,558
Cap Rate (18.60%) & NOI	$ 1,168,233
Gross Rent Multiplier	$ 1,181,232

Sale Proceeds

Projected Selling Price	$ 2,363,558
Costs of Sale (2.20%)	$ 51,998
1. Loan Balance Payoff	$ 304,033
Net Sale Proceeds Before Tax	$ 2,007,526

In the resale analysis we do not include any calculation for taxes that might be owed on sale of the property. The tax laws for the resale are rather complex and subjected to frequent changes.

Net Assets and Yield

Net Assets
Sale Proceeds Before Tax	$ 2,007,526
Investor Cash Outlay	$ 141,429
Net Assets	$ 1,866,097
Average Yield
Annual Net Assets	$ 93,305
Average Cash Flow (After Taxes)	$ 109,362
Average Annual Gain (After Taxes)	$ 202,667
Average Annual Yield (After Taxes)	22.75 %

This charts shows Net Present Value (NPV) when property is sold in various years, i.e. when sold in 5th year, the NPV is calculated from 5 years of Cash Flow (including the selling price) and this NPV is displayed in year 5. Optimal holding period can be estimated, using this method - when NPV is the highest. Please note that appreciation growth can change these numbers greatly. It sometimes makes sense to sell the property even before the end of the mortgage term.

Property Report: $890800 NDIS Bookfield RENTAL

Property Report :

$890800 NDIS Bookfield

Lot 321 Sumac St. Everton Estate, Brookfield, 3338

Executive Summary

Lot 321 Sumac St. Everton Estate, Brookfield, 3338

Financial Analysis

Financial Breakdown

Total Capital Needed

Total Capital Needed

Cash out of Pocket

Cash out of Pocket

Cash at Closing

Cash at Closing

Cash During Rehab

Cash During Rehab

Operating Analysis

Property Description

Operating Analysis

Annual Property Operating Data

Gross Scheduled Income (GSI)

Gross Scheduled Income (GSI)

Vacancy and Credit Loss

Vacancy and Credit Loss

Gross Operating Income (GOI)

Gross Operating Income (GOI)

Operating Expenses

Operating Expenses

Net Operating Income (NOI)

Net Operating Income (NOI)

Cash Flow (Year 1)

Cash Flow

Cash Flow

Cash Flow

Cash Flow

Operating Ratios

Operating Expense Ratio

Operating Expense Ratio

Break-Even Ratio (BER)

Break-Even Ratio (BER)

Financial Analysis

Financial Measures

Net Present Value (NPV)

Net Present Value (NPV)

Internal Rate of Return (IRR)

Internal Rate of Return (IRR)

Profitability Index

Profitability Index

Investment Return Ratios

Cash on Cash Return

Cash on Cash Return

Return on Investment

Return on Investment

Capitalization Rate

Capitalization Rate

Gross Rental Yield

Gross Rental Yield

Gross Rent Multiplier (GRM)

Gross Rent Multiplier (GRM)

Financing Overview

Loan to Value Ratio

Loan to Value Ratio

Loan to Cost Ratio

Loan to Cost Ratio

Long-term Cash Flow Forecast

Resale Analysis

Resale Price Evaluation Methods

Sale Proceeds

Net Assets and Yield

Photos