Redwood Avenue Steve Belluomini BHGRE Commerical · Each Better Homes and Gardens® Real Estate...

Property Report

Redwood Avenue193 Redwood Avenue

Redwood City, CA 94061

Presented by:

Steve BelluominiBHGRE Commerical1116 South El Camino Real

San Mateo, CA 94402Office: 650-578-0200Mobile: 650-207-5253

[email protected]

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OverviewRedwood Avenue193 Redwood AvenueRedwood City, CA 94061

Steve Belluomini650-578-0200

[email protected]

Purchase InfoSquare Feet (5 Units) 4,647Purchase Price $2,100,000Initial Cash Invested $672,000

Income Analysis Monthly AnnualNet Operating Income $4,725 $56,700Cash Flow -$2,083 -$24,994

Financial MetricsCap Rate (Purchase Price) 2.7%Cash on Cash Return (Year 1) -3.7%Internal Rate of Return (Year 10) 9.7%Sale Price (Year 10) $2,822,224


Purchase AnalysisRedwood Avenue193 Redwood AvenueRedwood City, CA 94061


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Purchase InfoPurchase Price $2,100,000- First Mortgage -$1,470,000- Second Mortgage -$0= Downpayment $630,000+ Buying Costs $42,000+ Initial Improvements $0= Initial Cash Invested $672,000Square Feet (5 Units) 4,647Cost per Square Foot $452Monthly Rent per Square Foot $1.76Cost per Unit $420,000Average Monthly Rent per Unit $1,640

Mortgages First SecondLoan-To-Cost Ratio 70% 0%Loan-To-Value Ratio 70% 0%Loan Amount $1,470,000 $0Loan Type AmortizingTerm 30 YearsInterest Rate 3.75%Payment $6,807.80 $0.00

Financial Metrics (Year 1)Annual Gross Rent Multiplier 21.3Operating Expense Ratio 42.4%Debt Coverage Ratio 0.69Cap Rate (Purchase Price) 2.7%Cash on Cash Return -3.7%

AssumptionsAppreciation Rate 3.0%Vacancy Rate 0.0%Income Inflation Rate 3.0%Expense Inflation Rate 3.0%LTV for Refinance 70.0%Selling Costs $147,000

Income Monthly AnnualGross Rent $8,200 $98,400Vacancy Loss -$0 -$0Operating Income $8,200 $98,400

Expenses (% of Income) Monthly AnnualCleaning & Maintenance (6%) -$500 -$6,000Insurance (11%) -$875 -$10,500Taxes (26%) -$2,100 -$25,200Operating Expenses (42%) -$3,475 -$41,700

Net Performance Monthly AnnualNet Operating Income $4,725 $56,700- Mortgage Payments -$6,808 -$81,694- Year 1 Improvements -$0 -$0= Cash Flow -$2,083 -$24,994


Buy and Hold ProjectionRedwood Avenue193 Redwood AvenueRedwood City, CA 94061


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Income Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Gross Rent $98,400 $135,600 $139,668 $148,174 $171,774 $230,850 $310,243Vacancy Loss -$0 -$0 -$0 -$0 -$0 -$0 -$0Operating Income $98,400 $135,600 $139,668 $148,174 $171,774 $230,850 $310,243

Expenses Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Cleaning & Maintenance -$6,000 -$6,180 -$6,365 -$6,753 -$7,829 -$10,521 -$14,139Insurance -$10,500 -$10,815 -$11,139 -$11,818 -$13,700 -$18,412 -$24,744Taxes -$25,200 -$25,956 -$26,735 -$28,363 -$32,880 -$44,188 -$59,385Operating Expenses -$41,700 -$42,951 -$44,240 -$46,934 -$54,409 -$73,121 -$98,269

Income Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Net Operating Income $56,700 $92,649 $95,428 $101,240 $117,365 $157,729 $211,974- Mortgage Payments -$81,694 -$81,694 -$81,694 -$81,694 -$81,694 -$81,694 -$81,693- Improvements -$0 -$0 -$0 -$0 -$0 -$0 -$0= Cash Flow -$24,994 $10,955 $13,735 $19,546 $35,671 $76,035 $130,281Cap Rate (Purchase Price) 2.7% 4.4% 4.5% 4.8% 5.6% 7.5% 10.1%Cap Rate (Market Value) 2.6% 4.2% 4.2% 4.2% 4.2% 4.2% 4.2%Cash on Cash Return -3.7% 1.6% 2.0% 2.9% 5.3% 11.3% 19.4%Return on Equity -3.5% 1.3% 1.5% 1.8% 2.1% 2.4% 2.6%

Loan Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Market Value $2,163,000 $2,227,890 $2,294,727 $2,434,476 $2,822,224 $3,792,834 $5,097,251- Loan Balance -$1,442,970 -$1,414,909 -$1,385,777 -$1,324,136 -$1,148,243 -$680,363 -$0= Equity $720,030 $812,981 $908,950 $1,110,339 $1,673,981 $3,112,471 $5,097,251Loan-to-Value Ratio 66.7% 63.5% 60.4% 54.4% 40.7% 17.9% 0.0%Potential Cash-Out Refi $71,130 $144,614 $220,532 $379,996 $827,314 $1,974,621 $3,568,076

Sale Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Equity $720,030 $812,981 $908,950 $1,110,339 $1,673,981 $3,112,471 $5,097,251- Selling Costs -$151,410 -$155,952 -$160,631 -$170,413 -$197,556 -$265,498 -$356,808= Proceeds After Sale $568,620 $657,029 $748,319 $939,926 $1,476,426 $2,846,972 $4,740,444+ Cumulative Cash Flow -$24,994 -$14,038 -$303 $35,841 $180,995 $749,881 $1,795,374- Initial Cash Invested -$672,000 -$672,000 -$672,000 -$672,000 -$672,000 -$672,000 -$672,000= Net Profit -$128,374 -$29,009 $76,016 $303,767 $985,421 $2,924,853 $5,863,818Internal Rate of Return -19.1% -2.1% 3.6% 7.7% 9.7% 9.7% 9.3%Return on Investment -19% -4% 11% 45% 147% 435% 873%


GraphsRedwood Avenue193 Redwood AvenueRedwood City, CA 94061


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155 3020100Year

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Rent RollRedwood Avenue193 Redwood AvenueRedwood City, CA 94061


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Unit Description Square Feet Units of This Type Rent (Per Unit)Unit 1 0 1 $1,700 Per Month

Unit 2 0 1 $1,700 Per Month




Totals for Year 1Total Number of Units 5Total Area (Single Value) 4,647 Square FeetTotal Rent (Sum of Units) $8,200 Per Month, $98,400 Per Year

The total property area may be greater than the sum of the unit areas due to common areas.


PhotosRedwood Avenue193 Redwood AvenueRedwood City, CA 94061


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Date post:	27-Jul-2020
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Redwood Avenue Steve Belluomini BHGRE Commerical · Each Better Homes and Gardens® Real Estate...

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