4016 rubidoux dr, las vegas, 89108
TRANSCRIPT
8/4/2019 4016 Rubidoux Dr, Las Vegas, 89108
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IdealHomeBrokers
PropertyOfferingReport 1of4
(949)351-6913
4016RUBIDOUXDR,LASVEGAS,89108
3bedroom2Fbath1811SFhomebuiltin1980
84,900$ Askingprice
Notes:
1 975$ Rent(seepage2forcomparables)
2 284$ Expenses(seepage2fordetail)
3 692$ Monthlynetoperatingincome
8,298$ Yearlynetincome
84,900$ Askingprice(Investment)
4 9.8% CapitalizationRate=netincome/askingprice
5 148,611$ Resalevalueinyear10(netof8%liquidationcosts)
63,711$ Profitfromsaleinyear10
6 14.0% InternalRateofReturn
Notes: 30-yearfixed 15-yearfixed$84,900 Askingprice $84,900
7 $67,920 Maximumloan $67,920
8 $16,980 Downpayment $16,980
9 5.00% Investmentloaninterestrate 4.50%
1 975$ Rent 975$
2 284$ Expenses 284$
3 692$ Monthlynetincome 692$
10 365$ Payment 520$
11 327$ Monthlycashflow 172$12 82$ Principalamortizationinpayment 265$
13 409$ Cashflowplusamortization 437$
4,902$ Yearlycashflowplusamortization 5,242$
8 16,980$ Downpayment(Investment) 16,980$
14 28.9% Cash-On-CashReturn=cashflow/downpayment 30.9%
5 93,593$ CashatSaleinyear10(profitplusamortization) 120,845$
6 37.7% InternalRateofReturn 40.9%
Financedpurchase
All-cashpurchase
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Notes: Calculations Terms
1 975$ Rent
CashOperatingExpenses
15 75$ PropertyTax 1.0%
16 50$ HomeownersInsurance 0.65%
17 -$ HomeownersAssociationFees varies
18 59$ PropertyManagementFees(%ofGrossRent) 6.0%
-$ OtherExpenses
19 184$ MonthlyCashExpenses 18.8%
ReserveExpenses
20 55$ MaintenanceandReplacementReserves 5.6%
21 45$ VacancyandCollectionLoss 4.6%
100$ MonthlyReserveExpenses 10.3%
284$ TotalExpenses 29.1%
3 692$ NetOperatingIncome 70.9%
ComparableResales ResaleDate Amount
4125MONTEMESACR--2bed2bath1557SF--1980List:$74900 7/8/11 76,500$
6616ROYROGERSDR--4bed2bath1338SF--1984List:$63900 6/17/11 64,000$
6516OUIDAWY--3bed2bath1253SF--1983List:$84900 6/3/11 84,900$
6413OUIDAWY--3bed2bath1294SF--1979List:$79900 3/18/11 79,900$
4117RUBIDOUXDR--3bed2bath1468SF--1980List:$82900 3/14/11 92,000$
6525OUIDAWY--3bed2bath1198SF--1983List:$74500 3/9/11 76,000$
ComparableRentals LeaseDate Amount
6608NEVADACLASSICCR--4bed3bath1742SF--1994List:$1050 7/26/11 1,050$
4766BAYHAMABBEYCT--4bed4bath1686SF--2007List:$1095 6/10/11 1,095$
4521LEMONGEMSCT--4bed3bath1916SF--2008List:$1049 4/21/11 1,049$
4782PRIORYGARDENSST--4bed3bath1686SF--2007List:$1100 3/10/11 1,100$
4774MEREWORTHCT--3bed4bath1686SF--2006List:$1050 8/12/10 1,350$6600NEVADACLASSICCR--4bed3bath1742SF--1994List:$1100 6/14/10 1,050$
4777MEREWORTHCT--3bed4bath1686SF--2006List:$1150 7/22/10 1,150$
GeneralDisclaimer
NetOperatingIncomeDetail
ThisreportrepresentstheconsideredopinionofIdealHomeBrokers.Wemakenoguarantee,warrantyorrepresentation
aboutit.Anyprojections,opinions,assumptionsorestimatesmaynotrepresentthecurrentorfutureperformanceofthe
property.Youandyouradvisorsshouldconductacareful,independentinvestigationofthepropertytodeterminetoyour
satisfactionthesuitabilityofthepropertyforyourneeds.
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IdealHomeBrokers
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Projected10-yearappreciationtonearrentalparitywithliquidationresale
FinancingTermsandCash-On-CashReturns
0.0%
5.0%10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
C a s h - O n - C a s h R e t u r n
I nt er est Rat e
lowerinterestrates
generatehigherreturns
lowerinterestrates
generatehigherreturns
lowerinterestrates
generatehigherreturns
lowerinterestrates
generatehigherreturns lowerdownpayments
generatehigherreturns
$166,729
$213,427
$84,900
$161,534
$-
$50,000
$100,000
$150,000
$200,000
$250,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
RentalParity ResaleValue
2.5%annualrentgrowth
3yeartroughtobreakeven
5yearsofdouble-digit
appreciaon
Undervaluaon
Resalenear
rentalparity
inyear10
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21 VacancyandCollectionLossisanallowancefortenantturnover.
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.
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.
GrossRentisestimatedfromcomparablerentalsortakenfromactualrentrolls.
NetOperatingIncomeistherentalincomeminusthecashexpenses.Thisfigureisindependentoftaxesorfinancingwhich
varyconsiderablyfromdealtodeal.Manyrentalpropertiesarepurchasedwithoutdebt,andtheNetOperatingIncomeis
necessarytocomputetheCapitalizationRate.
Mortgageinterestratesvarybasedonamortizationschedule.Thequickertheloanamortizes,thelowertheinterestrate.
Themonthlycashflowshowstheamountleftoverafterallpaymentsandreserveshavebeenmet.
Theresalevalueatinyear10assumespricesappreciatestronglyafterthesupplyproblemsareresolved.(seepage3).