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Can you please help me calculate a potential single-tenant property investment using the DCF model in Excel.
Please show calculations for 10 year holding period. STEP BY STEP
Data:
Initial Property value: $350,000
Operating income
Current monthly annual rent: $20,160 ($420 per week) ($1680 monthly rent)
Projected Annual rent Growth: 5%
Vacancy rate: 2.9%
Operating Expenses (Annual):
Property taxes: $1,800 per annum
Insurance costs: $1,200 per annum
Property Management fees: 6% of rental income
Maintenance and repair $1,500 per annum
Utilities: $2,200per annum
Capital Expenditures (Annual): Estimated CapEx: $2,000 (for regular upkeep and replacements)
Financing:
Loan Amount: $200,000
Interest Rate: 6.9%
Loan Term: 30 years
Closing Costs: $2,000
Market Assumptions:
Discount Rate: 8%
Terminal Cap Rate: 6%
Holding Period: 10 years
Property Sale Costs: 6% of the selling price
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