Comfortably Living Investment Case Study: Barrack at Rock Prairie

Case Study:
Barracks @ Rock Prairie
3327 Cullen Trail
College Station, Texas

$189,900
4 bedroom/4 bath town house

Quickly gaining recognition as one of the BEST investment opportunities in College Station, these luxurious townhomes feature: Granite, stained concrete floors, vinyl windows, black appliances, HUGE bedrooms, & much more! Located only ~2.5 miles from Texas A&M! The Barracks is exclusively offering the much anticipated resort style amenities center featuring CABLE WAKEBOARDING PARK, Sandy Beach, Clubhouse with Arcade, Bar & Grill, & lagoon-style pool! The HOA even provides digital cable & Internet, full lawn care of the fenced grass backyard, and all exterior maintenance. These units will sell out fast!

More information at: http://www.barrackstownhomes.com/ Site Acquisition Analysis

Adjacent/Alternative Land Uses Residential, Retail, Office Distance to Texas A&M 3.4 miles Economic Obsolescence None Open Spacing Yes Price Per Sq. Foot $108.83 Year Built 2013 Access to Quality Retail Yes, Wal-Mart 3.5 miles, >1 to stripe mall Financial Analysis Offer Price $184,203 Equity Needed (10%) $18,420 Year 5 Reversion Gross Potential Income $21,600 $26,254 $231,331 Operating Expenses (9%) ($1,944) ($2,744) $13,878 Vacancy Loss (10%) ($2,160) ($2,625) $0 Debt Service ($9,013) ($9,013) $148,562 Capital Expenditure ($1,000) ($1,000) $0 Before Tax Cash Flow $7,483 $10,871 $68,890 Preferred Return 8% $1,474 $0 $0 Priority Payback 60% $3,605 $0 $0 Share of Remaining CF 50% $1202 $5,435.75

$34,445

Offer Price: Property is valued at 97% of the asking price Equity Needed: This is 10% of the offer price and serves as a down payment (earnest money) Gross Potential Income: This is the most income the asset can generate in any given year Operating Expenses: These include taxes and insurance as well as brokerage expenses at reversion (sale) Vacancy Loss: This is to account for months when the property is not leased and is not generating income Debt Service: This is the annual mortgage payment made to the mortgage lien holder (i.e. bank). The remaining mortgage balance is subtracted from sale price at reversion to get BFTC from sale. Capital Expenditure: This cash is placed in a reserve account and is used for such expenses as new carpeting or repairs needed during the holding period Before Tax Cash Flow (BTCF): This is the operating cash remaining after deducting all expenses from the gross potential income Preferred Return: This is the annual return each investor earns on the money they invest in the deal. There is no preferred return after all equity is paid back. Priority Payback: After subtracting the preferred return from the BTCF the investor is entitled to 60% of the remaining cash flow as priority payback of equity they invested until all equity is returned Share of Remaining Cash Flow: Whatever cash is remaining after preferred return and priority payback is split 50/50 between Comfortably Living and Investors. Profits at reversion are considered remaining cash flow.