Palm Desert San Rafael Ave Palm Desert, CA Prime Palm Desert Location. Huge upside potential in rents.

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1 Palm Desert San Rafael Ave Palm Desert, CA For more information contact: Alan Wachman Sales Associate CA LIC # Prime Palm Desert Location. Short walk to upscale dining and shopping at El Paseo. Huge upside potential in rents. Substantial capital improvements recently completed. 4 units totally remodeled to condo quality standards Motor Avenue Los Angeles, CA (p) (f)

2 REAL ESTATE INVESTMENT DETAILS Analysis Analysis Date July 2017 Property Property Property Address Year Built 1988 Palm Desert San Rafael Ave Palm Desert, CA Purchase Information Property Type MultiFamily Purchase Price $3,195,000 Units 16 Total Rentable Sq. Ft. 12,336 Financial Information Down Payment $1,995,000 Loans Type Debt Term Amortization Rate Payment LO Costs Fixed $1,200, years 30 years 3.5% $5,389 Income & Expenses Gross Operating Income $207,775 Monthly GOI $17,315 Total Annual Expenses ($88,353) Monthly Expenses ($7,363) Contact Information Alan Wachman CA LIC # page - 2

3 EXECUTIVE SUMMARY ACQUISITION COSTS Purchase Price, Points and Closing Costs $3,195,000 Investment - Cash $1,995,000 First Loan $1,200,000 INVESTMENT INFORMATION Purchase Price $3,195,000 Price per Unit $199,688 Price per Sq. Ft. $ Income per Unit $13,388 Expenses per Unit ($5,522) INCOME, EXPENSES & CASH FLOW Gross Scheduled Income $214,201 Total Vacancy and Credits ($6,426) Operating Expenses ($88,353) Net Operating Income $119,422 Debt Service ($64,662) Cash Flow Before Taxes $54,759 FINANCIAL INDICATORS Cash on Cash Return Before Taxes 2.74% Debt Coverage Ratio 1.85 Capitalization Rate 3.74% Gross Rent Multiplier Gross Income / Square Feet $17.36 Gross Expenses / Square Feet ($7.16) Operating Expense Ratio 42.52% page - 3

4 PRO FORMA SUMMARY UNIT MIX & MONTHLY SCHEDULED INCOME Type Units Actual Total Market Total $1,116 $17,850 $1,395 $22,320 TOTALS 16 $17,850 $22,320 INVESTMENT SUMMARY Price: $3,195,000 Year Built: 1988 Units: 16 Price/Unit: $199,688 RSF: 12,336 ANNUALIZED INCOME Actual Market Gross Potential Rent $214,201 $267,840 Less: Vacancy ($6,426) ($8,035) Effective Gross Income $207,775 $259,805 Less: Expenses ($88,353) ($90,473) Net Operating Income $119,422 $169,332 Debt Service ($64,662) ($64,662) Net Cash Flow after Debt Service $54,759 $104,669 Principal Reduction $23,030 $23,030 Total Return $77,789 $127,699 Price/RSF: $ Lot Size: 40,758 sf Floors: 2 Parking Spaces: 32 APN: Cap Rate: 3.74% Market Cap Rate: 5.3% GRM: Market GRM: FINANCING SUMMARY Loan Amount: $1,200,000 Down Payment: $1,995,000 Loan Type: Fixed Interest Rate: 3.5% Term: 30 years ANNUALIZED EXPENSES Actual Market Grounds Maintenance $4,000 $4,000 Insurance $4,701 $4,701 Maintenance $5,500 $5,500 Management Fees (off site) $8,560 $10,680 Management Fees (on site) $10,000 $10,000 Repairs $2,732 $2,732 Pool $2,400 $2,400 Taxes - Real Estate $40,000 $40,000 Trash Removal $3,360 $3,360 Utility - Electricity $3,400 $3,400 Utility - Water/Sanitation $3,700 $3,700 Total Expenses $88,353 $90,473 Expenses Per RSF $7.16 $7.33 Expenses Per Unit $5,522 $5,655 Monthly Payment: $5,389 DCR: 1.85 EXISTING LOAN OF FIXED - 4 YEARS REMAINING page - 4

5 UNIT RENT ROLL Unit Description Approx. Sq. Ft. Current Rent Pro Forma Rent Comments $1,395 $1,395 Manager $962 $1, $1,017 $1, $1,395 $1, $984 $1, $1,017 $1, $990 $1, $1,395 $1,395 projected $1,045 $1, $962 $1, $962 $1, $984 $1, $1,395 $1,395 projected $1,395 $1,395 projected $990 $1, $962 $1,395 page - 5

6 PROPERTY DESCRIPTION Prime Palm Desert Location - 4 blocks to upscale dining and shopping at El Paseo. The San Rafael property sits on a 40,758 sq.ft. lot with new gated control access entry to the covered parking lot. Both buildings have been freshly painted including the recently remodeled pool and common area. The property features 16-2 bedroom 2 bath apartments. All units have central air heat, private balconies or patio's, individual hot water heaters, washer and dryers. Four of the units have been meticulously remodeled to condo quality standards featuring "real" hardwood floors, recessed lighting,all new kitchens with polished stone counter tops and tiled baths.all new appliances,fixtures and hardware including new washers and dryers,micro waves,dish washers,stoves and refrigerators, frosted glass interior doors.buyer to assume existing loan at a below market, favorable fixed rate with 4 years remaining. page - 6

7 PROPERTY PHOTOS Pool Area bathroom bathroom bedroom living room Kitchen page - 7

8 LOCATION MAP page - 8

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