Pentuckett Avenue

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1 For more information contact: Vice President BRE #: Mike Nunez Associate BRE #: Desirable North Park Zip Code Quiet Cul-De-Sac Location Recently Renovated Interior and Hardscape All 2 Bedroom Units New Roof Phone: (619) Fax: (866) Kenyon St #411 San Diego, CA

2 Real Estate Investment Details Analysis Analysis Date June 2017 Property Property Property Address Purchase Information Property Type MultiFamily Purchase Price $749,000 Fair Market Value $749,000 Units 2 Total Rentable Sq. Ft. 1,632 Resale Valuation 3.0% (annual appreciation) Financial Information Down Payment $320,000 Closing Costs $7,500 LT Capital Gain 15.00% Federal Tax Rate 35.0% State Tax Rate 10.0% Discount Rate 5.00% Loans Type Debt Term Amortization Rate Payment LO Costs Fixed $429, years 30 years 4.8% $2,251 $4,290 Income & Expenses Gross Operating Income $41,904 Monthly GOI $3,492 Total Annual Expenses ($12,225) Monthly Expenses ($1,019) Contact Information evans@scc1031.com BRE #: Mike Nunez nunez@scc1031.com BRE #: The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projections and analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax or other professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting, tax or other professional area before making any decisions. page 2 of 12

3 Executive Summary ACQUISITION COSTS Purchase Price, Points and Closing Costs $760,790 Investment - Cash $331,790 First Loan $429,000 INVESTMENT INFORMATION Purchase Price $749,000 Price per Unit $374,500 Price per Sq. Ft. $ Income per Unit $21,600 Expenses per Unit ($6,113) INCOME, EXPENSES & CASH FLOW Gross Scheduled Income $43,200 Total Vacancy and Credits ($1,296) Operating Expenses ($12,225) Net Operating Income $29,679 Debt Service ($27,010) Cash Flow Before Taxes $2,669 Total Interest (Debt Service) ($20,449) Depreciation and Amortization ($18,381) Taxable Income (Loss) ($9,151) Tax Savings (Costs) $4,118 Cash Flow After Taxes $6,787 FINANCIAL INDICATORS Cash on Cash Return Before Taxes 0.80% Optimal Internal Rate of Return (yr 7) 7.81% Debt Coverage Ratio 1.10 Capitalization Rate 3.96% Gross Rent Multiplier Gross Income / Square Feet $26.47 Gross Expenses / Square Feet ($7.49) Operating Expense Ratio 29.17% page 3 of 12

4 Property Description Property Description: Pentuckett is a two unit property located between the high-end communities of North Park and South Park. Both units have two bedrooms and one bathroom and sit on a 6,258 square foot lot. The property has been meticulously maintained and has undergone recent renovations. Including but not limited to tile floors in the kitchen and bathroom, stainless steel appliances, and new vanities and tile showers in the bathrooms. Unit 1757 has laundry hookups. Both apartments feature a private front yard. The units are spacious, each being approximately 800 square feet. For an investor looking for a well maintained and well located asset, look no further. Area Description: Pentuckett sits between the neighborhoods of North Park and South Park. South Park is known for its tree-lined streets, compact blocks, and walkable business district. South Park has been gaining repute for its small businesses since the 1990's, and has long been home to a group of residents diverse in income, age, sexual orientation, and race. Pedestrianism, like in other urban mesa neighborhoods north of Balboa Park, is high relative to the rest of San Diego. North Park has been named by Forbes Magazine as one of America's best hipster neighborhoods. An eclectic and diverse array of restaurants, as well as independent coffee shops, can be found along the main arteries of 30th Street and University Avenue. The area is also dotted with bars and nightclubs that cater to a wide variety of patrons. page 4 of 12

5 PROPERTY PHOTOS

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8 Location Map page 8 of 12

9 Aerial Map page 9 of 12

10 Unit Mix Report UNIT MIXES Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 2 2Br/1Ba 816 $1,800 $3,600 $1,950 $3, ,632 $3,600 $3,900 UNIT MIX UNIT MIX SQUARE FEET 2Br/1Ba 2Br/1Ba UNIT MIX INCOME UNIT MIX MARKET INCOME 2Br/1Ba 2Br/1Ba page 10 of 12

11 Pro Forma Summary UNIT MIX & MONTHLY SCHEDULED INCOME Type Units Actual Total Market Total 2Br/1Ba 2 $1,800 $3,600 $1,950 $3,900 TOTALS 2 $3,600 $3,900 INVESTMENT SUMMARY Price: $749,000 Units: 2 Price/Unit: $374,500 RSF: 1,632 Price/RSF: $ ANNUALIZED INCOME Actual Market Gross Potential Rent $43,200 $46,800 Less: Vacancy ($1,296) ($1,404) Effective Gross Income $41,904 $45,396 Less: Expenses ($12,225) ($12,225) Net Operating Income $29,679 $33,171 Debt Service ($27,010) ($27,010) Net Cash Flow after Debt Service $2,669 $6,161 Principal Reduction $6,561 $6,561 Total Return $9,230 $12,722 Lot Size: 6,258 sf Floors: 1 APN: Cap Rate: 3.96% Market Cap Rate: 4.43% GRM: Market GRM: 16.0 FINANCING SUMMARY Loan Amount: $429,000 Down Payment: $320,000 Loan Type: Fixed ANNUALIZED EXPENSES Actual Market Grounds Maintenance $330 $330 Handy Man $130 $130 Janitorial $1,680 $1,680 Maintenance $270 $270 Taxes - Real Estate $8,690 $8,690 Utilities- Water $1,125 $1,125 Total Expenses $12,225 $12,225 Expenses Per RSF $7.49 $7.49 Expenses Per Unit $6,113 $6,113 Interest Rate: 4.8% Term: 30 years Monthly Payment: $2,251 DCR: 1.1 page 11 of 12

12 Demographics Population Characteristic 1 Mile 3 Mile 5 Mile AGES 0-4 1,783 22,314 37,614 AGES 5-9 1,988 24,640 41,527 AGES ,640 20,808 34,875 AGES ,477 19,434 32,639 AGES ,545 21,055 36,801 AGES ,673 22,938 41,750 AGES ,815 24,560 45,231 AGES ,009 26,097 47,512 AGES ,167 26,793 47,784 AGES ,197 25,748 46,038 AGES ,043 22,557 41,148 AGES ,754 18,652 35,147 AGES ,379 14,194 28,124 AGES ,003 10,223 21,142 AGES ,081 15,344 AGES ,703 10,935 AGES ,009 7,471 AGES ,753 13,903 Race Characteristic 1 Mile 3 Mile 5 Mile Non Hispanic White 15, , ,846 Population Black 1,485 31,965 51,648 Population Am In/AK Nat ,250 Household Income 1 Mile 3 Mile 5 Mile Median Household Income $51,861 $40,431 $47,094 < $ ,762 15,756 $10000-$ ,760 15,745 $15000-$ ,381 13,436 $20000-$ ,506 13,108 $25000-$ ,362 11,888 $30000-$ ,737 11,502 $35000-$ ,100 11,450 $40000-$ ,148 10,758 $45000-$ ,448 9,565 $50000-$ ,267 17,683 $60000-$ ,092 10,227 19,915 $75000-$ ,437 11,349 24,722 $ $ ,019 14,615 $ $ ,130 7,690 $ $ ,782 7,087 > $ ,371 6,999 Characteristic Housing 1 Mile 3 Mile 5 Mile Housing Units 11, , ,128 Occupied Housing Units 10, , ,728 Owner Occupied Housing Units 4,566 33,317 79,501 Renter Occupied Housing Units 5,920 85, ,227 Vacant Housing Units 578 9,875 19,400 page 12 of 12