Property Report: 1201 W Vernon Ave, Los Angeles RENTAL

Property Report :

1201 W Vernon Ave, Los Angeles, CA 90037

Created on: Apr 15, 2025

Author: steve richardson

1201 W Vernon Ave, Los Angeles, CA 90037

Condominium: 120 rooms: 60 bedrooms , 60 bathrooms

Year built: 2019, Size: 35000 SF

Investment strategy: Rental Property

Purchase Price$ 2,000,000
Rent$ 81,800/mo
Monthly Cash Flow$ 31,146
Cash on Cash Return27.48 %

Financial Analysis

Cash on Cash Return 27.48 %
Internal Rate of Return (IRR) 37.06 %
Capitalization Rate 5.45 %
Gross Rent Multiplier (GRM) 14.93
Debt-coverage Ratio (DCR) 1.88
Operating Expense Ratio (OER) 14.40 %
After Repair Value $ 14,651,000
Profit/Equity From Rehab $ 7,061,000

Financial Breakdown

Purchase Price $ 2,000,000
Purchase Costs $ 90,000
Repair/Construction Costs $ 5,500,000
Total Capital Needed
$ 7,590,000
Financing $ 6,230,000
Total Cash Needed
$ 1,360,000
Cash at Closing
$ 0
Cash During Rehab
$ 1,360,000

Operating Analysis

Rent $ 81,800/mo
Gross Operating Income (GOI) $ 932,520
Total Expenses $ 134,284
Net Operating Income (NOI) $ 798,236
Annual Debt Service $ 424,479
Cash Flow Before Taxes (CFBT) $ 373,757
Income Tax Liability $ 99,875
Cash Flow After Taxes (CFAT) $ 273,882
Purchase Price $ 2,000,000
Address 1201 W Vernon Ave , Los Angeles, 90037, CA
Year Built 2019
Type Condominium
Size 35000 SF
Bedrooms 60
Bathrooms 60
Rooms Total 120
1201 W Vernon Ave Los Angeles, CA 90037
  • $ 14,651,000

    Property ARV
  • Condominium

    Bldg type
  • 35,000

    SqFt
  • $ 419

    per SqFt
  • 60

    Beds
  • 60

    Baths

It wasn't possible to load comps automatically for this address. You can add them manually below. Click here to see automatically selected comps on Redfin®

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Property address Distance Beds Baths SqFt Bldg type Date sold Sale price $/SqFt Notes Edit
Average: $ 0 $ 0 /SqFt
Estimated ARV:
$ 0

Comps selected: 0

Annual Property Operating Data

Incomes % of GOI
Gross Scheduled Income
$ 981,600    
Total Gross Income $ 981,600  
Vacancy loss
$ 49,080  
Gross Operating Income
$ 932,520 100.00 %
Expenses
Property manager $ 83,927 9.00 %
Utilities $ 27,976 3.00 %
Insurance $ 3,730 0.40 %
Repairs $ 18,650 2.00 %
Property tax $ 1 0.00 %
Total Expenses $ 134,284 14.40 %
Net Operating Income
$ 798,236 85.60 %

Cash Flow (Year 1)

Net Operating Income $ 798,236 85.60 %
Annual Debt Service $ 424,479 45.52 %
Cash Flow Before Taxes (CFBT)
$ 373,757 40.08 %
Income Tax Liability $ 99,875 10.71 %
Cash Flow After Taxes (CFAT)
$ 273,882 29.37 %

Operating Ratios

Operating Expense Ratio
14.40 %
Break-Even Ratio
59.92 %

Financial Measures

Net Present Value
$ 5,884,547
Internal Rate of Return
37.06 %
Profitability Index
5.33
Annual Depreciation $ 58,182

Holding period of 10 years and discount rate of 10.00% were used for calculation of NPV and IRR. The rest of the financial measures are for the 1st year only and therefore don't provide such an exact information.

Investment Return Ratios

Cash on Cash Return
27.48 %
Return on Investment
31.89 %
Capitalization Rate
5.45 %
Gross Rental Yield
49.08 %
Gross Rent Multiplier
14.93
Financing % of ARV
Down Payment $ 0 0.00 %
Loan $ 6,230,000 42.52 %
Loan to Value Ratio
311.50 %
Loan to Cost Ratio
83.07 %
Debt Coverage Ratio 1.88
Loan

Financing of: Specific amount ($ 6,230,000)

Type Amortized
Loan Amount $ 6,230,000
Down payment (0%) $ 0
Amortization 30 years
Interest Rate 5.50 %
Monthly Payment $ 35,373.25

This chart shows the process of accumulation of investor's equity. There is some equity created right at the beginning with the rehab/construction and later investor's equity is rising by paying off the principal of the loan and also by appreciation over the years. All the green parts is the cummulative equity belonging to the investor and the red part belongs to the lender.

Year
Operational Analysis
Gross Scheduled Income
Vacancy Loss
Gross Operating Income
Expenses
Net Operating Income
Loan Payment
Payment Interest Part
Payment Principal Part
Cash Flow
Repairs/Construction
Cash Flow Before Taxes
Depreciation 0
Taxes
Cash Flow After Taxes

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 10 years. Below is the resale price calculated using different methods.

Appreciation (3.00%) $ 19,689,719
Cap Rate (5.45%) & NOI $ 17,503,960
Gross Rent Multiplier $ 17,514,426

Sale Proceeds

Projected Selling Price $ 19,689,719
Costs of Sale (4.00%) $ 787,589
Net Sale Proceeds Before Tax $ 13,759,826

In the resale analysis we do not include any calculation for taxes that might be owed on sale of the property. The tax laws for the resale are rather complex and subjected to frequent changes.

Net Assets and Yield

Net Assets
Sale Proceeds Before Tax $ 13,759,826
Investor Cash Outlay $ 1,360,000
Net Assets $ 12,399,826
Average Yield
Annual Net Assets $ 1,239,983
Average Cash Flow (After Taxes) $ 0
Average Annual Gain (After Taxes) $ 0
Average Annual Yield (After Taxes) 0.00 %

This charts shows Net Present Value (NPV) when property is sold in various years, i.e. when sold in 5th year, the NPV is calculated from 5 years of Cash Flow (including the selling price) and this NPV is displayed in year 5. Optimal holding period can be estimated, using this method - when NPV is the highest. Please note that appreciation growth can change these numbers greatly. It sometimes makes sense to sell the property even before the end of the mortgage term.

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