Property Report: Avalon RENTAL

Property Report :

Avalon

123 Main, Los Angeles, CA 90036

Created on: Apr 15, 2025

Author: David Levine

123 Main, Los Angeles, CA 90036

Multifamily: 82 bedrooms , 82 bathrooms + 82 kitchens

Year built: 1980, Size: 50000 SF

Investment strategy: Rental Property

Purchase Price$ 24,000,000
Rent$ 1,200/mo
Monthly Cash Flow$ -9,618
Cash on Cash Return-0.45 %

Financial Analysis

Cash on Cash Return -0.45 %
Internal Rate of Return (IRR) 0.82 %
Capitalization Rate -0.45 %
Gross Rent Multiplier (GRM) 1,777.78
Debt-coverage Ratio (DCR) 0.00
Operating Expense Ratio (OER) 913.72 %
After Repair Value $ 25,600,000

Financial Breakdown

Purchase Price $ 24,000,000
Purchase Costs $ 240,000
Repair/Construction Costs $ 1,600,000
Total Capital Needed
$ 25,840,000
Financing $ 0
Total Cash Needed
$ 25,840,000
Cash at Closing
$ 0
Cash During Rehab
$ 25,840,000

Operating Analysis

Rent $ 1,200/mo
Gross Operating Income (GOI) $ 14,184
Total Expenses $ 129,601
Net Operating Income (NOI) $ -115,417
Annual Debt Service $ 0
Cash Flow Before Taxes (CFBT) $ -115,417
Income Tax Liability $ -244,080
Cash Flow After Taxes (CFAT) $ 128,662

Apartments

Purchase Price $ 24,000,000
Address 123 Main , Los Angeles, 90036, CA
Year Built 1980
Type Multifamily
Number of Units 82
Size 50000 SF
Bedrooms 82
Bathrooms 82
Kitchens 82
123 Main Los Angeles, CA 90036
  • $ 25,600,000

    Property ARV
  • Multifamily

    Bldg type
  • 50,000

    SqFt
  • $ 512

    per SqFt
  • 82

    Beds
  • 82

    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®

Filter properties
 
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
$ 14,400    
App_fees $ 360
200 $ 144
Total Gross Income $ 14,904  
Vacancy loss
$ 720  
Gross Operating Income
$ 14,184 100.00 %
Expenses
Repairs $ 6,000 42.30 %
Utilities $ 15,600 109.98 %
Manager $ 24,000 169.21 %
Prop_taxes $ 78,000 549.92 %
Prop_insurance $ 6,000 42.30 %
Total Expenses $ 129,601 913.72 %
Net Operating Income
$ -115,417 -813.72 %

Cash Flow (Year 1)

Net Operating Income $ -115,417 -813.72 %
Annual Debt Service $ 0 0.00 %
Cash Flow Before Taxes (CFBT)
$ -115,417 -813.72 %
Income Tax Liability $ -244,080 -1,720.81 %
Cash Flow After Taxes (CFAT)
$ 128,662 907.10 %

Operating Ratios

Operating Expense Ratio
913.72 %
Break-Even Ratio
913.72 %

Financial Measures

Net Present Value
$ -9,047,945
Internal Rate of Return
0.82 %
Profitability Index
0.65
Annual Depreciation $ 698,182

Holding period of 5 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
-0.45 %
Return on Investment
1.41 %
Capitalization Rate
-0.45 %
Gross Rental Yield
0.06 %
Gross Rent Multiplier
1,777.78

There is no financing selected in this deal.

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
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 5 years. Below is the resale price calculated using different methods.

Appreciation (2.00%) $ 28,264,469
Cap Rate (-0.48%) & NOI $ 28,881,464
Gross Rent Multiplier $ 29,709,068

Sale Proceeds

Projected Selling Price $ 28,264,469
Costs of Sale (7.00%) $ 1,978,513
Net Sale Proceeds Before Tax $ 26,285,956

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 $ 26,285,956
Investor Cash Outlay $ 25,840,000
Net Assets $ 445,956
Average Yield
Annual Net Assets $ 89,191
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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