   
Giant 3 bed 1 bath, Corner shot, Front from
park of duplex and 4 bed 2 ba., Park across street.
PRE-ANALYZED INVESTMENT OPPORTUNITY
THE DEAL:
Sorry-IN ESCROW! 610 E. 24th street in L.A. Gigantic 4 units on 9,000+ SqFt lot composed of 2 separate
houses and a duplex.
Two units are vacant
& ready to rent. Across from park. Currently this
transaction is under contract for
Steve Nauert and or nominees. Sensational
leverage because 4 units requires only 10% down.
Cap rate is 9 and our borrowing
cost is under 8%. Gross income over $54,000, down payment under $50,000-
a money
making formula. All operating numbers below include professional management
at 6% of gross income,
so you only have drive by once to buy, then you will
receive monthly report and check for life of investment.
|
PRICE AND FINANCING AT 7.2 X GROSS RENTAL INCOME |
|
PURCHASE PRICE |
431,000 |
100% |
7.8 X Annual Rental Income |
|
Down Payment |
43,100 |
10% |
cash required $59,000. |
|
Loan: 80% 1st T.D @7.5%
10% 2nd T.D. @9.5% |
387,900 |
90% |
1st. T.D. = $344,800
2nd T. D. = $43,100 |
|
FIRST YEAR OPERATING STATEMENT |
|
Annual Gross Rental Income |
54,960 |
100% |
|
|
Less: expenses including 6% mgt. & 5% vacancy, 5% repair &
maintenance |
17,680 |
32% |
Building has separate gas and electric meters. |
|
NET OPERATING INCOME |
37,280 |
68% |
9% CAP RATE |
|
Less: Loan Payments |
33,024 |
|
|
NET CASH FLOW |
4,256 |
7%
on cash |
|
|
FIRST YEAR INVESTMENT RECAP |
|
NET CASH FLOW |
4,256 |
|
|
Plus: 1st. yr. principal reduction |
3,178 |
|
|
Plus: tax savings - depreciation |
1,702-
represents 40% shelter on $4,250 positive cash flow |
Assume you have 40% Fed & State tax rate |
|
1st. yr. After Tax Yield on Equity |
$9,136 |
15% on cash |
|
5 years later....Income compounds @4% per year,
expenses compound @4% per year
FIVE YEAR
PROJECTION - INCOME RISES AS PER ABOVE EXPLANATION |
|
CURRENT VALUE @ 7.8GRM |
$521,562 |
100% |
|
Loan balance |
$369,340 |
71% |
|
Equity: |
$152,222 |
29% |
|
FIFTH YEAR OPERATING STATEMENT |
|
Annual Gross Rental Income |
$66,867 |
100% |
$66,867 X 7.8
GRM = $521,562 value. |
|
Less: expenses including mgt. |
$21,510 |
32% |
expenses
compounded 4% per year |
|
NET OPERATING INCOME |
$45,351 |
68% |
|
|
Less: Loan Payments |
$33,024 |
Payment remains constant |
|
NET CASH FLOW |
$12,327 |
21% on cash |
|
|
FIFTH YEAR INVESTMENT RECAP |
|
NET CASH FLOW |
$12,327 |
|
|
Plus: principal reduction |
$4,286 |
|
|
Plus: tax savings/ depreciation |
$3,761 |
$9,403 depreciation on positive cash flow of $12,327 assuming 40% fed &
state rate= $3,761 |
|
Fifth year After Tax Yield |
$20,374 |
35% on $59,000 cash invested |
Please call Edward 310-560-4234 or Steve 310-493-1999 if this investment opportunity appeals to you.
Staff@SafariRealtors.com
Safari Realty 5155 W. Rosecrans Ave. #1188
L.A., CA 90250
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