2214 akamine ave, north las vegas, 89031 2

8/4/2019 2214 Akamine Ave, North Las Vegas, 89031 2

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IdealHomeBrokers

PropertyOfferingReport 1of4

[email protected]

(949)351-6913

2214AKAMINEAVE,NORTHLASVEGAS,890314bedroom2Fbath2230SFhomebuiltin1996

149,900$ Askingprice

Notes: 30-yearfixed 15-yearfixed

$149,900 Askingprice $149,900

7 $119,920 Maximumloan $115,295

8 $29,980 Downpayment $34,605

22 $7,101 ClosingcostsandfeesfromestimatedHUDclosingstatement $7,101

$37,081 TotalInvestment $41,706

9 5.00% Investmentloaninterestrate 4.50%

1 1,300$ Rent 1,300$

2 418$ Expenses 418$

3 882$ Monthlynetincome 882$

10 644$ Payment 917$11 238$ Monthlycashflow (35)$

12 144$ Principalamortizationinpayment 450$

13 382$ Cashflowplusamortization 414$

4,588$ Yearlycashflowplusamortization 4,971$

8 37,081$ TotalInvestment(downpaymentplusclosingcosts) 41,706$

14 12.4% Cash-On-CashReturn=cashflow/totalinvestment 11.9%

5 165,248$ CashatSaleinyear10(profitplusamortization) 215,255$

6 24.0% InternalRateofReturn 29.5%

Thispropertywaspurchasedattrusteesale,fullyrenovated,

inspected,andrentedtoaqualifiedtenant.Thisisadesireable

single-storyhousewithhigh-endfinishesandvaultedceilings.

Futureowneroccupantdemandwillbehigh.Resalevaluewill

comebacksooneronpropertieslikethisone.

Financedpurchase


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IdealHomeBrokers


[email protected]

(949)351-6913

Notes:

1 1,300$ Rentfromtenantlease(seepage2forcomparables)

2 418$ Expenses(seepage2fordetail)

3 882$ Monthlynetoperatingincome

10,584$ Yearlynetincome

149,900$ Askingprice(Investment)

4 7.1% CapitalizationRate=netincome/askingprice

5 262,389$ Resalevalueinyear10(netof8%liquidationcosts)

112,489$ Profitfromsaleinyear10

6 11.5% InternalRateofReturn

Notes: Calculations Terms

1 1,300$ Rent

CashOperatingExpenses

15 125$ PropertyTax 1.0%

16 85$ HomeownersInsurance 0.65%

17 -$ HomeownersAssociationFees varies

18 78$ PropertyManagementFees(%ofGrossRent) 6.0%

-$ OtherExpenses

19 288$ MonthlyCashExpenses 22.2%

ReserveExpenses

20 75$ MaintenanceandReplacementReserves 5.8%

21 55$ VacancyandCollectionLoss 4.2%

130$ MonthlyReserveExpenses 10.0%

418$ TotalExpenses 32.2%

3 882$ NetOperatingIncome 67.8%

ComparableResales ResaleDate Amount

2214SEXTONAV--3bed2bath1874SF--1997List:$137500 10/26/11 137,500$

2207LAPALCOAV--3bed2bath1874SF--1996List:$104900 9/30/11 135,000$

6041MARVINST--3bed2bath1702SF--1997List:$125000 9/30/11 122,000$

6140SATRECT--3bed2bath1874SF--1997List:$149900 9/16/11 165,100$


2203LAPALCOAV--4bed2bath2230SF--1996List:$152000 6/28/11 152,000$

ComparableRentals LeaseDate Amount

6039THEATRICALRD--3bed2bath1874SF--1996List:$1200 10/9/10 1,200$


3605LACASCADAAV--4bed3bath2283SF--2004List:$1350 6/9/11 1,350$

3524PANTEGOAV--4bed2bath2212SF--2005List:$1500 1/14/11 1,400$


3584CANTURACRESTCT--4bed3bath2283SF--2005List:$1395 10/13/10 1,395$


All-cashpurchase

NetOperatingIncomeDetail


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IdealHomeBrokers


[email protected]

(949)351-6913

Projected10-yearappreciationtonearrentalparitywithliquidationresale

FinancingTermsandCash-On-CashReturns

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Cash-On-CashReturn

InterestRate

lowerinterestrates

generatehigherreturns

lowerinterestrates


lowerinterestrates


lowerinterestrates

generatehigherreturns lowerdownpayments


$216,829

$277,560

$149,900

$285,205

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

RentalParity ResaleValue

2.5%annualrentgrowth

3yeartroughtobreakeven

5yearsof

double-digitappreciaon

Undervaluaon

Resalenear

rentalparity

inyear10


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IdealHomeBrokers


[email protected]

(949)351-6913

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GeneralDisclaimer

VacancyandCollectionLossisanallowancefortenantturnover.

ThisreportrepresentstheconsideredopinionofIdealHomeBrokers.Wemakenoguarantee,warrantyorrepresentation

aboutit.Anyprojections,opinions,assumptionsorestimatesmaynotrepresentthecurrentorfutureperformanceofthe

property.Youandyouradvisorsshouldconductacareful,independentinvestigationofthepropertytodeterminetoyour

satisfactionthesuitabilityofthepropertyforyourneeds.

Themonthlypaymentisthebasedonthelargestloanalenderoffersthatstillprovidesforpositivecashflow

Estimatedhomeownersinsurance.

Thecapitalization(cap)rateisthe(yearly)NetOperatingIncomedividedbythepurchaseprice.Itisthesimplestmeasureof

aninvestment'sfinancialperformance,anditprovidesaconvenientcomparisontocompetinginvestmentalternatives.Acap

rateislikeaninterestrateonacheckingaccount,amutualfundreturn,orabondyield.Thecaprateisinverselyrelatedto

price;inotherwords,highcapratesaresynonymouswithlowpricesandvisaversa.Thecaprateaninvestorwillaccept

variesfrompersontoperson.Thereisnosingleappropriateratetoapplytovalue.Instead,weshowarangeofvaluesat

differentcapratestoshowthecurrentinvestmentreturnsomeonecanexpectfromthisproperty.

Mortgageinterestratesvarybasedonamortizationschedule.Thequickertheloanamortizes,thelowertheinterestrate.

Themonthlycashflowshowstheamountleftoverafterallpaymentsandreserveshavebeenmet.

Theresalevalueatinyear10assumespricesappreciatestronglyafterthesupplyproblemsareresolved.(seepage3).

Closingcostsareestimatedfromourexperiencewithdozensoftransactions.Thisincludesbankloanfees,escrowfees,title

insurance,transfertaxes,andothercostsassociatedwithatypicalrealestatetransaction.

TheInternalRateofReturnevaluatesthetimingandtheamountofeachsourceofincomeandcalculatesaratewhichwould

balancethesevarioussourcesofincomewiththeinitialinvestment.IRRisthebestmethodforcalculatingthereturnson

investmentswithvariableincome.

Estimatedmaintenanceandreplacementreserves.Thesearehigherinsingle-familydetachedhomesandinolderproperties.

Homeownersassociationduesfrompropertyinvestigation.

Propertymanagementfeesvary,but8%-10%ofthemonthlyrentisacommonfee.

Summaryofexpensesfrompage2

TheCash-On-CashReturnissimilartoacapitalizationrateinthatitshowsareturnoninvestment,butitismeasuredby

comparingtheTotalProfitandLossafterExpenses,DebtandTaxesandcomparesthattothecashinvestment.Thisisthe

importantrateofreturnforinvestorswhoarenotpurchasingwithallcash.Aslongasdebtislessexpensivethanthecaprate,thecash-on-cashreturnscanbemagnifiedbyincreasingdebt.Thisisanappropriateuseofleveragetoincrease

investmentreturns.

Thisisthepropertytaxamountsetbythelocaljurisdiction.

Maximumloanbasedonlenderlimitationsoravailablecashflow.Generallysmallerfor15-yearamortization.

Thedownpaymentreflectstheminimumup-frontinvestmentrequiredbasedonfinancinglimitations.

Thisisthecalculatedprincipalamortizationinthefirstpayment.Thisamountincreasesinsubsequentpayments.

Theactualmonthlygainincludesbothleft-overcashflowandamortizationintheloan.

Monthlycashexpensesaretheactualoutlaysofcasheachmonthtosupporttheproperty.

GrossRentisestimatedfromcomparablerentalsortakenfromactualrentrolls.

NetOperatingIncomeistherentalincomeminusthecashexpenses.Thisfigureisindependentoftaxesorfinancingwhich

varyconsiderablyfromdealtodeal.Manyrentalpropertiesarepurchasedwithoutdebt,andtheNetOperatingIncomeis

necessarytocomputetheCapitalizationRate.


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Apple Blossom Arbitrage, LLC

AppleBlossomArbitrage,LLC cell:(949)351-6913

53MidnightSky email:[email protected]

Irvine,CA92620

EstimatedHUD

TheestimatedHUDstatementisanestimateofclosing

costsprovidedbyalocalescrowagent.Theactualclosing

costsmayvaryfromtheamountsshown.


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Irvine,CA92620

SignedLease

Thesignedleaseshowingtheactualrentalamount

obtainedeachmonthfromtheproperty.


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Irvine,CA92620

ManagementContract

Thepropertyiscurrentlyunderthird-partymanagement.

Thissectionshowsthesignedmanagementcontract

demonstratingfees.


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Irvine,CA92620

InspectionReport

Thepropertyinspectionreportshowsallthepertinent

physicaldetailsoftheproperty.Thepropertywas

inspectedaftertheinitialrenovationwork,andanyitems

whichwererevealedinthereportweretakencareofprior

totenantoccupancy.


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Irvine,CA92620

DraftPurchaseandSaleagreement

Adraftofthepurchaseandsaleagreementisincludedfor

reviewpriortosigning.


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2214 akamine ave, north las vegas, 89031 2

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