SMALL MULTIFAMILY INVESTMENT OPPORTUNITY...SMALL MULTIFAMILY INVESTMENT OPPORTUNITY 4-Plex - W...

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SMALLMULTIFAMILYINVESTMENTOPPORTUNITY

4-Plex - W Village Ct 1022 West Village Court

PASADENA, TX 77506

PRICE: $339,900

KEVIN RILES, CCIMBroker(281) 403-3700kevin@kevinrilescommercial.com555188, Texas

TABLE OF CONTENTS

Property Summary 3Property Photos 4

Business Map 5Pro Forma Summary 6

Financial Indicators 7Investment Return Analysis 8

Professional Bio 9

PROPERTY SUMMARY4-Plex - W Village Ct 1022 West Village Court | Pasadena, TX 77506

KEVIN RILES, CCIM(281) 403-3700kevin@kevinrilescommercial.com

Property SummaryBuilding Size: 3,600Lot Size: 8,800.0 AcresPrice: $339,900Tenants/Units: 4Type: MultiFamily

Property OverviewGREAT INVESTMENT OPPORTUNITY! Kevin Riles Commercialis pleased to offer this 100% occupied 4-plex in the strongPasadena Submarket of South Houston, TX. These Units havebeen completely renovated with all new HVAC systems,granite countertops, tile throughout, and new paint. Thisproperty also has an 8k sq.ft lot with a carport. There arethree (3) two-bedroom 1 bath units (2/1s) and one three-bedroom 1 bath Units (3/1). There is also a coin-operatedwasher/dryer room at the back of the property that brings inapprox $350/mth in additional income. Current rents aresignificantly below the market. $650/mth for the 2 bedroomsand $895/mth for the 3 Bedrooms.

Location Overview

PROPERTY PHOTOS4-Plex - W Village Ct 1022 West Village Court | Pasadena, TX 77506

BUSINESS MAP4-Plex - W Village Ct 1022 West Village Court | Pasadena, TX 77506

PRO FORMA SUMMARY4-Plex - W Village Ct 1022 West Village Court | Pasadena, TX 77506

Unit Mix & Annual Scheduled Income Type Units Actual Total Market Total Two BedroomUnits 2 $8,280 $16,560 $10,200 $20,400

1 $8,520 $8,520 $11,700 $11,700 Three BedroomUnit 1 $10,740 $10,740 $12,000 $12,000

Totals 4 $35,820 $44,100

Annualized Income Description Actual Market Gross Potential Rent $35,820 $44,100 - Less: Vacancy $0 $0 + Misc. Income $4,200 $4,200 Effective Gross Income $40,020 $48,300 - Less: Expenses ($12,886) ($12,886) Net Operating Income $27,134 $35,414 - Debt Service ($16,533) ($16,533) Net Cash Flow after Debt Service $10,601 $18,881 + Principal Reduction $4,387 $4,387 Total Return $14,987 $23,267

Annualized Expenses Description Actual Market Building Insurance $4,800 $4,800 Taxes - Real Estate $4,486 $4,486 Utilities $3,600 $3,600 Total Expenses $12,886 $12,886 Expenses Per RSF $3.58 $3.58 Expenses Per Unit $3,222 $3,222

Investment SummaryPrice $339,900Year Built 1968Units 4Price/Unit $84,975RSF 3,600Price/RSF $94.42Lot Size 8,800.0 acresFloors 2APN 0991450000006Cap Rate 7.98%Market Cap Rate 10.42%GRM 8.49Market GRM 7.04

Financing SummaryLoan Amount $271,920Down Payment $67,980Loan Type FixedInterest Rate 4.5%Term 30 yearsMonthly Payment $1,378DCR 1.64

FINANCIAL INDICATORS4-Plex - W Village Ct 1022 West Village Court | Pasadena, TX 77506

Description Year 1 Year 2 Year 3 Year 4 Year 5 Gross Income per Sq. Ft. $11.12 $11.12 $11.12 $11.12 $11.12 Expenses per Sq. Ft. ($3.58) ($3.58) ($3.58) ($3.58) ($3.58)

Gross Rent Multiplier 8.49 8.49 8.49 8.49 8.49 Capitalization Rate 7.98% 7.98% 7.98% 7.98% 7.98%

Operating Expense Ratio 32.20% 32.20% 32.20% 32.20% 32.20% Net Income Multiplier 12.53 12.53 12.53 12.53 12.53

Loan To Value Ratio 78.71% 77.36% 75.95% 74.47% 72.93% Debt Coverage Ratio 1.64 1.64 1.64 1.64 1.64

Cash-On-Cash Return b/t 13.86% 13.86% 13.86% 13.86% 13.86% Cash-On-Cash Return a/t 13.86% 13.86% 13.86% 13.86% 13.86%

* b/t = before taxes; a/t = after taxes

INVESTMENT RETURN ANALYSIS4-Plex - W Village Ct 1022 West Village Court | Pasadena, TX 77506

Description Year 1 Year 2 Year 3 Year 4 Year 5 Cash Flow - To Date $10,601 $21,201 $31,802 $42,403 $53,003 Net Resale Proceeds $72,367 $76,955 $81,754 $86,773 $92,023 Invested Capital ($76,480) ($76,480) ($76,480) ($76,480) ($76,480) Net Return on Investment $6,487 $21,676 $37,076 $52,696 $68,547 Internal Rate of Return 8.48% 14.15% 15.83% 16.50% 16.77% Modified IRR 8.48% 13.29% 14.08% 14.00% 13.65% NPV (cash flow + reversion) $6,487 $21,676 $37,076 $52,696 $68,547 PV (NOI + reversion) $367,034 $394,168 $421,302 $448,436 $475,570

* a/t = after taxes; Modified IRR = Modified Internal Rate of Return; PV = Present Value; NPV = Net

PROFESSIONAL BIO4-Plex - W Village Ct 1022 West Village Court | Pasadena, TX 77506

Kevin Riles, CCIMBrokerKevin Riles Commercial | Sugar Land, TXP: (281) 403-3700

Kevin Riles, CCIM is an award winning Commercial Real Estate Broker based in Houston, TX. He hasgeneral commercial real estate brokerage expertise with the following specialties:

- Multifamily/Apartment Brokerage- Small to Medium Business Real Estate- Retail & Industrial Tenant Representation- Distressed Commercial Real Estate- Religious, Church & Non-Profit Real Estate

He also serves as a Assistant Professor of Real Estate at Prairie View A&M University (a Texas A&M SystemSchool). Kevin is the author of two books - Confessions of a Top Producer: 9 Tools for Sales Success &Abundance and 40 Acres & a Mule: The African American Guide to Building Wealth through Real Estate .He also serves as President and CEO of Kevin Riles Commercial

SMALL MULTIFAMILY INVESTMENT OPPORTUNITY...SMALL MULTIFAMILY INVESTMENT OPPORTUNITY 4-Plex - W...

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