Net operating income
$341,931/yr
Cap rate
15.3%
Exterior of 3930 Long Beach Road, Island Park NY — white two-story former funeral home with porte-cochère

Island Park, NY · Private development model

3930 Long Beach Road

Current condition: former funeral home, pre-renovation. Below, every assumption is adjustable and the numbers update as you move.

Total building
10,000 SF
Floors
2 × 5,000 SF
Suites planned
35
Parking
50 spaces
At a glance

What this project returns

Four numbers that tell you whether the plan works. Everything else on this page feeds into them.

Total investment
$2,235,000
$1M purchase + $1.2M build-out + $35K leasing
Net operating income
$341,931
$28,494/month
Cap rate
15.3%
NOI ÷ total investment
Payback
6.5 yrs
Years of NOI to recoup cost
Scenarios

Jump to a preset set of assumptions.

The model

Adjust the assumptions

Move any slider on the left and the charts on the right recalculate instantly.

Total Investment

What you paid for the building plus the second-floor build-out.

Purchase price (already paid)$1,000,000
Build-out cost per SF$240/SF
Build-out area5,000 SF
Soft costs (permits, design, fees)$0
Total project cost$2,235,000

Second Floor Build-Out — Income

35 private practice suites, all-in rent = base rent + flat utility fee.

Concept rendering of the second-floor suite corridor with frosted-glass doors

Concept rendering — second floor

Number of suites35 suites

Building fits 35 suites at most

Base rent per suite$975/mo
Utility fee per suite$150/mo

All-in rent: $1,125/month per suite

Vacancy & credit loss5%
Lease-up to stabilized occupancy6 months
Count the dental practice space as income
Ground floor is owner-occupied. Off = excluded from returns; on = imputed rent (opportunity cost) included.

Operating Expenses

Mortgage payment$7,500 / month

$90,000 per year — set to $0 for an all-cash purchase

Use one simple expense ratio
Off = itemized taxes, insurance, utilities, management, repairs.
Insurance (annual)$14,000
Common-area utilities (annual)$24,000
Management fee5%
Repairs & reserves per suite$300/yr
Total annual expenses$226,944

Rooftop Space

Undeveloped roof leased out for a fixed monthly rent.

Concept rendering of a green rooftop space with planters, lounge seating and privacy screening

Concept rendering — rooftop

Include rooftop rental income
Rooftop rent$8,000 / month
Without roof
$250,731
Cap rate 11.2%
With roof
$341,931
Roof adds $91,200

Parking Income

Lease out spare parking spots by the month.

Include parking rental income
Total parking spots40 spots
Spots leased out20 spots
Rent per spot$100 / month
Parking income per year$24,000

Adds about $22,800 to yearly profit after its share of costs.

Brokerage & Leasing Fees

Commissions paid to brokers to fill the suites — a bigger one-time cost to lease up the building, then a smaller yearly cost as tenants turn over.

Include brokerage fees
Initial lease-up commission (one-time)$35,000

Counted as part of your total investment, not a yearly expense.

Turnover commissions (per year, after year 1)$10,000/yr

Ongoing operating expense as suites re-lease.

One-time lease-up cost$35,000
Yearly turnover cost$10,000

Income → Expenses → NOI

Gross monthly
$49,375
Effective gross (yr)
$568,875
Year-1 NOI (lease-up)
$184,543

Cap Rate

15.3%
$341,931 NOI ÷ $2.24M invested

Where the money goes

  • Mortgage payments$90,000
  • Property tax$50,000
  • Insurance$14,000
  • Common-area utilities$24,000
  • Management fee$28,444
  • Repairs & reserves$10,500
  • Leasing commissions$10,000

Occupancy ramp & break-even

Break-even is the occupancy where cash flow hits zero.

Break-even occupancy
19%
Cushion at stabilized
76%
Optional

Financing & debt service

If you borrow instead of paying cash, this is what the bank looks at and what you keep.