CASH FLOW INVESTMENT OPPORTUNITY (Concord, CA)

CASH FLOW INVESTMENT OPPORTUNITY

INVESTMENT PROPERTY 694 Old Charlotte Hwy Concord NC 28027 Size 1 488 sq. ft. Yr. Built 1945 Lot size .65 acre Baths 1 Beds 3 Central A C heat Tax asses. 66 130 Annual tax 463 Condition move-in ready Vacant 2 yrs. Selling due to death 1.6% property appreciation predicted next year ARV 76 500 Asking price 53 550 COMPS 839 Old Charlotte Hwy. SW Concord NC 28027 3 beds 2 baths 1 272 sq ft. Tax s 540 Tax asses. 77 140 Built 1930 Central A C heat Lot size 9 800 sqft Sold 8 27 14 78 000 531 Amhurst St. SW Concord NC 28025 3 beds 2 baths 1 255 sq ft. Tax s 607 Tax asses. 86 740 Built 2002 Central A C heat Lot size 4 791 sq ft Sold 1 3 14 72 000 230 Buffalo Ave NW Concord NC 28025 2 bed 2 bath 1 250 sq ft Tax s 622 Tax asses. 83 610 2 bed 2 bath 1 250 sq ft Tax s 622 Tax asses. 83 610 Sold 10 1 14 79 500 CASH FLOW ANNALYSIS LEASED AS IS Avg Rent for Concord 838 mo Neighbor property current rent 700 mo Assume rent (at) 700 mo Gross rent 8 400 tax s 463 Maintenance 500 5% vacancy 420 Insurance 400_ Net operating income (NOI) 6 617 Gross Cap Rate NOI price of property 12.4% 80% loan (LTV)20yr (at) 4.5% 42 840 20% down (ETV) 10 710 Annual debt service 3 252.36 Loan constant debt service loan amount .0759187 Cash on cash return desired 20% Net Cap Rate (weighted average) (loan constant x LTV% of debt) (cash on cash x ETV% cash down) 10.1% Net value of investment (NOI weighted average cap rate) 65 514.85 Net annual cash realized 3 364.64 LEASED WITH UPGRADES 800 mo rent Add 5 000 upgrades Gross rent 9 600 Tax s 463 Maintenance 500 5% vacancy 480 Insurance 400_ NOI 7 757 Gross Cap Rate NOI price of property 14.4% 80% loan (LTV)20yr (at) 4.5% 46 840 20% down (ETV) 11 710 Annual debt service 3 555.96 Loan constant debt service loan amount .0759171 Cash on cash return desired 20% Net Cap Rate (weighted average) (loan constant x LTV% of debt) (cash on cash x ETV% cash down) 12.1% Net value of investment (NOI weighted average cap rate) 64 107.44 Net annual cash realized 4 201.04 SUGESTED UPGRADES Change floor plan to create master bed room to living room and bed room to living room reface kitchen cabinets Install new laminate kitchen counter top Install new kitchen flooring Upgrade bath vanity toilet and tub surround Miscellaneous interior painting Net Cap Rate reflects costs of financing and cash on cash returns to achieve a true net value