2012201320142015201620172018201920202021
The numbers below are from the current analysis. Ratios do not take into account all of the cash flows, and are not a discounted cash flow measure like NPV, hence do not reflect the true yield for the analysis. Cash flows with the * symbol are partial years where the partial number has been divided by the number of months and multipled by 12.
Less: Loan Repayment\$1,233,107\$1,225,492\$1,217,080\$1,207,787\$1,197,521\$1,186,180\$1,173,652\$1,159,811\$1,144,522\$1,127,631
/ Sale Value\$1,349,110\$1,421,186\$1,496,909\$1,576,461\$1,660,030\$1,747,813\$1,840,018\$1,936,862\$2,038,573\$2,145,390
= Loan Balance/Property Value91.4%86.2%81.3%76.6%72.1%67.9%63.8%59.9%56.1%52.6%

Loan Balance/Property Value is the Loan Repayment amount divided by the Sale Value (both measured at the beginning of the year)

Considers:
• Sale Value and Loan Balance
Ignores:
• Sale Proceeds, All Financing (Loans), Other Years NOI, All Taxes

... and a lot of other things
Why is Breakeven Occupancy useful?

This ratio measures the margin of safety for the lender's principal. This can also be an important number if you are planning to refinance.

What is the Breakeven Occupancy Sensitive to:

Sale Value and Loan Balance