Turn Key Investment Opportunity 1875 Julian Avenue San Diego, … · 2016-06-23 · Turn Key Investment Opportunity 1875 Julian Avenue San Diego, CA 92113 Joe Ramos 619-226-6011 x105

Turn Key Investment Opportunity

1875 Julian AvenueSan Diego, CA 92113

Joe Ramos

619-226-6011 x105

[email protected]

David Cameron

619-226-6011 x106

[email protected]

❖ Strong Tenant Base

❖ Rehabbed Units

❖ Gated Parking

❖ Quiet Street

Phone: 858-779-1000 ● Fax: 866-861-7803 ● 3405 Kenyon St #411 ● San Diego, CA 92110 ● www.scc1031.com

DetailsTurn Key Investment Opportunity1875 Julian AvenueSan Diego, CA 92113

Real Estate Investment Details

ANALYSIS

Analysis Date: November 2010

PROPERTY

Property: Turn Key Investment Opportunity

Property Address: 1875 Julian AvenueSan Diego, CA 92113

Year Built: 1958

FINANCIAL INFORMATION

Down Payment: $174,750

Discount Rate: 8.00%

PURCHASE INFORMATION

Property Type: Multi-Family

Purchase Price: $699,000

Fair Market Value: $699,000

Units: 8

Total Rentable Sq. Ft.: 4,023

Resale Valuation 0% (annual appreciation)

LOANS

Debt Term Rate Payment LO Costs

Fixed $524,250 30 yrs 5.25% $2,895

INCOME & EXPENSES

Gross Operating Income: $75,289

Monthly GOI: $6,274

Total Annual Expenses: ($27,003)

Monthly Expenses: ($2,250)

CONTACT INFORMATION

Joe Ramos

619-226-6011 x105

[email protected]

01496498

David Cameron

619-226-6011 x106

[email protected]

01269169

The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projectionsand analysis.

page 3 of 17

Property OverviewTurn Key Investment Opportunity1875 Julian AvenueSan Diego, CA 92113

Property DescriptionTurn Key Investment Opportunity


Joe Ramos619-226-6011 x105

This recently renovated 8 unit complex is aquality investment property. The exterior of theproperty is beautifully decorated in ivy, there arestamped concrete floors throughout the units,with Spanish in lay tiles. Units all possess newerappliances with bathrooms and kitchens updatedand all major systems are in great condition i.e;roofing, electrical and plumbing. Located in thequieter part of Logan Heights, this diamond inthe rough has appeal to both families anddowntown commuters and is easily accessiblewith a large gated lot for parking. All Units Include or come with:•1 Bedroom, 1 Bathroom, Living Room•Newer appliances•Custom Paint•Secured parking•Common area for barbecue and recreation

Logan Heights is a neighborhood in central San Diego that is the cultural center for the popularlocal Mexican-American community. It is immediately surrounded by the I-5, I-15, and ImperialAvenue, and only minutes from the ever expanding and booming downtown area. Only blocks froma Boys and Girls club with a skate park, newly refurbished public library, Petco Park, Family HealthCenter, and Farmers Market, this area is a potential home for families. Also located near by is ahighly populated shipyard, a local post office, and valid public transportation by train or bus, that isgreat for any business person. Located in the heart of one of America’s most beautiful cities, LoganHeights is a location that has it all.

page 5 of 17

Property PhotosTurn Key Investment Opportunity


Joe Ramos619-226-6011 x105

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Investment OutlookTurn Key Investment Opportunity1875 Julian AvenueSan Diego, CA 92113

Executive SummaryTurn Key Investment Opportunity


Joe Ramos619-226-6011 x105

ACQUISITION COSTS

Purchase Price, Points and Closing Costs $699,000

Investment - Cash $174,750

First Loan $524,250

INVESTMENT INFORMATION

Purchase Price $699,000

Price per Unit $87,375

Price per Sq. Ft. $173.75

Income per Unit $9,698

Expenses per Unit ($3,375)

INCOME, EXPENSES & CASH FLOW

Gross Scheduled Income $77,580

Total Vacancy and Credits ($2,291)

Operating Expenses ($27,003)

Net Operating Income $48,286

Debt Service ($34,739)

Cash Flow Before Taxes $13,546

FINANCIAL INDICATORS

Cash on Cash Return Before Taxes 7.75%

Optimal Internal Rate of Return (yr 5) 9.67%

Debt Coverage Ratio 1.39

Capitalization Rate 6.91%

Gross Rent Multiplier 9.01

Gross Income / Square Feet $19.28

Gross Expenses / Square Feet ($6.71)

Operating Expense Ratio 35.87%

page 8 of 17

Pro Forma SummaryTurn Key Investment Opportunity


Joe Ramos619-226-6011 x105

UNIT MIX & ANNUAL SCHEDULED INCOME

Type Units Actual Total Market Total

1 Bd / 1 Ba 1 $10,260 $10,260 $10,800 $10,800

1 Bd / 1 Ba 1 $9,420 $9,420 $10,800 $10,800

1 Bd / 1 Ba 1 $9,420 $9,420 $10,800 $10,800

1 Bd / 1 Ba 1 $9,420 $9,420 $10,800 $10,800

1 Bd / 1 Ba 1 $9,600 $9,600 $10,800 $10,800

1 Bd / 1 Ba 1 $9,420 $9,420 $10,800 $10,800

1 Bd / 1 Ba 1 $9,420 $9,420 $10,800 $10,800

1 Bd / 1 Ba 1 $9,420 $9,420 $10,800 $10,800

TOTALS 8 $76,380 $86,400

ANNUALIZED INCOME

Actual MarketGross Potential Rent $76,380 $86,400

Less: Vacancy ($2,291) ($4,320)

Misc. Income $1,200 $1,200

Effective Gross Income $75,289 $83,280

Less: Expenses ($27,003) ($27,003)

Net Operating Income $48,286 $56,277

Debt Service ($34,739) ($34,739)

Net Cash Flow after Debt Service $13,546 $21,538

Principal Reduction $7,392 $7,392

Total Return $20,939 $28,930

ANNUALIZED EXPENSES

Description Actual MarketGas and Electric $1,641 $1,641

Water and Sewer $4,459 $4,459

Landscaping $1,440 $1,440

Trash Removal $1,924 $1,924

Pest Control $540 $540

Maintanence $2,170 $2,170

Management $3,876 $3,876

License and Fees $150 $150

Insurance $2,000 $2,000

Taxes $8,803 $8,803

Total Expenses $27,003 $27,003

Expenses Per RSF $6.71 $6.71

Expenses Per Unit $3,375 $3,375

INVESTMENT SUMMARY

Price: $699,000

Year Built: 1958

Units: 8

Price/Unit: $87,375

RSF: 4,023

Price/RSF: $173.75

Cap Rate: 6.91%

Market Cap Rate: 8.05%

GRM: 9.0

Market GRM: 8.0

FINANCING SUMMARY

Loan Amount: $524,250

Down Payment: $174,750

Loan Type: Fixed

Interest Rate: 5.250%

Term: 30 years

Monthly Payment: $2,895

page 9 of 17

Unit Mix ReportTurn Key Investment Opportunity


Joe Ramos619-226-6011 x105

UNIT MIXES

# Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly1 1 Bd / 1 Ba 0 $855 $855 $900 $9001 1 Bd / 1 Ba 0 $785 $785 $900 $9001 1 Bd / 1 Ba 0 $785 $785 $900 $9001 1 Bd / 1 Ba 0 $785 $785 $900 $9001 1 Bd / 1 Ba 0 $800 $800 $900 $9001 1 Bd / 1 Ba 0 $785 $785 $900 $9001 1 Bd / 1 Ba 0 $785 $785 $900 $9001 1 Bd / 1 Ba 0 $785 $785 $900 $9008 0 $6,365 $7,200

UNIT MIX UNIT MIX SQUARE FEET

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

UNIT MIX INCOME UNIT MIX MARKET INCOME

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

● 1 Bd / 1 Ba

page 10 of 17

Investment DetailsTurn Key Investment Opportunity1875 Julian AvenueSan Diego, CA 92113

Cash Flow AnalysisTurn Key Investment Opportunity


Joe Ramos619-226-6011 x105

Description Year 1 Year 2 Year 3 Year 4 Year 5

GROSS SCHEDULED INCOME $77,580 $78,726 $79,889 $81,069 $82,267

Turnover Vacancy ($2,291) ($2,326) ($2,361) ($2,396) ($2,432)

Total Operating Expenses ($27,003) ($27,185) ($27,369) ($27,554) ($27,742)

NET OPERATING INCOME $48,286 $49,215 $50,159 $51,118 $52,093

Loan Payment ($34,739) ($34,739) ($34,739) ($34,739) ($34,739)

NET CASH FLOW (b/t) $13,546 $14,476 $15,420 $16,379 $17,354

Cash On Cash Return b/t 7.75% 8.28% 8.82% 9.37% 9.93%

Footnotes: b/t = before taxes;a/t = after taxes

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Annual Property Operating DataTurn Key Investment Opportunity


Joe Ramos619-226-6011 x105


Rental Income $76,380 $77,526 $78,689 $79,869 $81,067

Miscellaneous Income $1,200 $1,200 $1,200 $1,200 $1,200

GROSS SCHEDULED INCOME $77,580 $78,726 $79,889 $81,069 $82,267

Turnover Vacancy ($2,291) ($2,326) ($2,361) ($2,396) ($2,432)

GROSS OPERATING INCOME $75,289 $76,400 $77,528 $78,673 $79,835

Expenses

Gas and Electric ($1,641) ($1,657) ($1,674) ($1,691) ($1,708)

Water and Sewer ($4,459) ($4,504) ($4,549) ($4,594) ($4,640)

Landscaping ($1,440) ($1,454) ($1,469) ($1,484) ($1,498)

Trash Removal ($1,924) ($1,943) ($1,963) ($1,982) ($2,002)

Pest Control ($540) ($545) ($551) ($556) ($562)

Maintanence ($2,170) ($2,192) ($2,214) ($2,236) ($2,258)

Management ($3,876) ($3,915) ($3,954) ($3,993) ($4,033)

License and Fees ($150) ($152) ($153) ($155) ($156)

Insurance ($2,000) ($2,020) ($2,040) ($2,061) ($2,081)

Taxes ($8,803) ($8,803) ($8,803) ($8,803) ($8,803)

TOTAL OPERATING EXPENSES ($27,003) ($27,185) ($27,369) ($27,554) ($27,742)

NET OPERATING INCOME $48,286 $49,215 $50,159 $51,118 $52,093

page 13 of 17

Investment ReturnsTurn Key Investment Opportunity1875 Julian AvenueSan Diego, CA 92113

Financial IndicatorsTurn Key Investment Opportunity


Joe Ramos619-226-6011 x105


Gross Rent Multiplier 9.01 8.88 8.75 8.62 8.50

Capitalization Rate 6.91% 7.04% 7.18% 7.31% 7.45%

Cash On Cash Return b/t 7.75% 8.28% 8.82% 9.37% 9.93%

Cash On Cash Return a/t 7.75% 8.28% 8.82% 9.37% 9.93%

Debt Coverage Ratio 1.39 1.42 1.44 1.47 1.50

Gross Income per Sq. Ft. $19.28 $19.57 $19.86 $20.15 $20.45

Expenses per Sq. Ft. ($6.71) ($6.76) ($6.80) ($6.85) ($6.90)

Net Income Multiplier 14.48 14.20 13.94 13.67 13.42

Operating Expense Ratio 35.87% 35.58% 35.30% 35.02% 34.75%

Loan To Value Ratio 73.94% 72.83% 71.65% 70.42% 69.11%

Footnotes: b/t = before taxes; a/t = after taxes

page 15 of 17

Additional InformationTurn Key Investment Opportunity1875 Julian AvenueSan Diego, CA 92113

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Turn Key Investment Opportunity 1875 Julian Avenue San Diego, … · 2016-06-23 · Turn Key Investment Opportunity 1875 Julian Avenue San Diego, CA 92113 Joe Ramos 619-226-6011 x105