Executive Underwriting Briefing · Prince Edward County

Cold Creek 8-Unit Block Comparison · CMHC MLI Select

Head-to-Head Underwriting: 3-Storey Back-to-Back Block vs. The Poplar Freehold Block (95% LTV · 50-Year Amortization)

PORT PICTON HOMES · 2026

Underwriting Category & Metric	Option 1: 3-Storey Back-to-Back Block Hybrid 50 Energy + 50 Afford (1 Unit · 12.5% @ $1,500/mo)	Option 2: The Poplar Freehold Block Hybrid 50 Energy + 50 Afford (+5% CMHC Spec · 1 Unit @ $1,500/mo)
1. Architecture & CMHC MLI Select Qualification
Architectural Design & Format	3-Storey Back-to-Back (4× 2B + 4× 3B)	2-Storey + Basement + Attached Garage (8× 3B)
CMHC Scoring Pillar Breakdown	50 Energy + 50 Afford = 100 Pts (Tier 3)	50 Energy + 50 Afford = 100 Pts (Tier 3)
CMHC Energy Upgrade Required	Deep Passive Envelope + ccASHP Spec	Deep Passive Envelope + ccASHP Spec (+5% Upgrade)
Affordable Units Committed (20 Yrs)	1 Unit (12.5% @ $1,500/mo)	1 Unit (12.5% @ $1,500/mo)
Monthly Rent Schedule (per Unit)	4× 3-Bed @ $2,400 3× 2-Bed @ $2,200 1× 2-Bed Afford @ $1,500	7× 3-Bed @ $2,450 1× 3-Bed Afford @ $1,500
2. Acquisition Basis & Capital Stack (95% LTV · 50-Yr Amortization @ 3.45%)
Gross Acquisition Price	$3,440,000 ($430K avg)	$3,591,000 ($448.9K avg)
5.0% Equity Down Payment	$172,000	$179,550
Total Funded Debt (w/ 4% CMHC Premium)	$3,398,720	$3,547,908
Total Cash Required to Close (All-In)	$274,907	$286,707
100% Net HST Rebated (PBRH + NRRPR)	$447,200 ($0 Net HST)	$466,830 ($0 Net HST)
3. Operating Pro-Forma & Debt Service
Underwritten Gross Revenue (GPI)	$212,400 / yr ($17,700/mo)	$223,800 / yr ($18,650/mo)
Effective Gross Income (7.5% Vacancy)	$196,470 / yr	$207,015 / yr
Operating Expenses (Insurance, Repairs, Reserve, 3.5% Mgmt)	−$26,876 / yr	−$27,246 / yr
10-Year Municipal TIEG Tax Grant	$8,000 / yr (100% Municipal Tax Offset)	$8,000 / yr (100% Municipal Tax Offset)
Net Operating Income (NOI w/ TIEG)	$169,594 / yr (4.93% Cap Rate)	$179,769 / yr (5.01% Cap Rate)
Annual Debt Service (50-Yr @ 3.45%)	−$142,754 / yr ($11,896/mo)	−$149,048 / yr ($12,421/mo)
Year 1 Net Operating Cash Flow	+$26,840 / yr (+$2,237/mo)	+$30,721 / yr (+$2,560/mo)
Debt Service Coverage Ratio (DSCR)	1.188x DSCR (CMHC Compliant)	1.206x DSCR (Strong Safety Buffer)
4. 5-Year Wealth Creation & Investment Returns
5-Year Cumulative Net Cash Flow	+$164,056	+$198,600
5-Year Mortgage Principal Paydown	+$138,929	+$145,028
5-Year Asset Appreciation (3% compound / yr)	+$547,903	+$571,957
5-Year Net Wealth Created (Gain over Cash In)	+$850,888	+$915,585
5-Year Levered Hold IRR (Equity Multiple)	29.8% Hold IRR (3.10x EM)	31.0% Hold IRR (3.32x EM)

Option 1: Cold Creek 3-Storey Back-to-Back Block

The Accessible Multi-Family High Yield Play. At competitive market rents ($2,400 / $2,200), delivers steady monthly net cash distributions (+$2,237/month) with a solid 1.188x DSCR, achieving a strong 29.8% Hold IRR (3.10x Equity Multiple) and +$850,888 in 5-year net wealth created.

+$2,237/mo Cash Flow · 29.8% IRR · 1.188x DSCR

Option 2: The Poplar Freehold 8-Unit Block

Single-Family Appeal & Attached Garages. Features 8 private attached garages + 8 basements with a +5% CMHC passive envelope spec. Generating +$2,560/month net cash flow with an institutional 1.206x DSCR, delivering 31.0% Hold IRR (3.32x Equity Multiple) and +$915,585 in 5-year wealth creation.

+$2,560/mo Cash Flow · 31.0% IRR · 1.206x DSCR