2131 Bluehaven Ct, San Diego CA 92154

2131 Bluehaven Ct, San Diego, CA 92154

Condominium: 3 bedrooms , 2.5 bathrooms

Year built: 1985, Size: 1495 SF

Investment strategy: Rental Property

Purchase Price$ 459,900

Rent$ 2,300/mo

Monthly Cash Flow$ -238

Cash on Cash Return-5.50 %

Financial Analysis

Cash on Cash Return	-5.50 %
Internal Rate of Return (IRR)	17.47 %
Capitalization Rate	3.93 %
Gross Rent Multiplier (GRM)	16.66
Debt-coverage Ratio (DCR)	0.86
Operating Expense Ratio (OER)	31.04 %

Financial Breakdown

Purchase Price	$ 459,900
Purchase Costs	$ 6,000
Repair/Construction Costs	$ 0
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 465,900
Financing	$ 413,910
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 51,990
Cash at Closing Cash at Closing This number includes down payment and loan points. Cash at Closing This number includes down payment and loan points.	$ 45,990
Cash During Rehab Cash During Rehab Shows the cash amount remaining to fund the purchase and rehab/construction. Cash During Rehab Shows the cash amount remaining to fund the purchase and rehab/construction.	$ 6,000

Operating Analysis

Rent	$ 2,300/mo
Gross Operating Income (GOI)	$ 26,220
Total Expenses	$ 8,138
Net Operating Income (NOI)	$ 18,082
Annual Debt Service	$ 20,941
Cash Flow Before Taxes (CFBT)	$ -2,859
Income Tax Liability	$ -1,899
Cash Flow After Taxes (CFAT)	$ -960

Rare Gem, stunning upgrades & Open floor plan. FEATURES INCLUDE: new paint, wood floor laminate, decorative wood, and wooden sliding doors, upgraded appliances, new windows, new automated lights, new kitchen, marble counters, lighted glass cabinet doors, decorative marble floors, posh decorative fireplace, multi-use center island and many more details you must see.

Purchase Price	$ 459,900
Address	2131 Bluehaven Ct , San Diego, 92154, CA
MLS^® #	PTP2105603
Listing Agent	Nick Franco
Listing Broker	Big Block Realty, Inc
Year Built	1985
Type	Condominium
Size	1495 SF
Bedrooms	3
Bathrooms	2.5

Property History

Date	Price	Change	Event
9/20/2012
3/1/2002
2/13/1986

Annual Property Operating Data

Incomes		% of GOI
Gross Scheduled Income Gross Scheduled Income (GSI) Represents the total of monthly rents for the particular property, including the potential rents from vacant units and uncollectable rents. Gross Scheduled Income (GSI) Represents the total of monthly rents for the particular property, including the potential rents from vacant units and uncollectable rents.	$ 27,600
Total Gross Income	$ 27,600
Vacancy loss Vacancy and Credit Loss Part of the potential rental income that is lost because of unoccupied units or uncollectable rent from tenants. Vacancy and Credit Loss Part of the potential rental income that is lost because of unoccupied units or uncollectable rent from tenants.	$ 1,380
Gross Operating Income Gross Operating Income (GOI) An actual income which is expected to be collected in the property. Gross Operating Income (GOI) An actual income which is expected to be collected in the property.	$ 26,220	100.00 %
Expenses Operating Expenses Expenses necessary for maintaining the property and ensuring its continued ability to produce income (doesn't include mortgage payments or depreciation). Operating Expenses Expenses necessary for maintaining the property and ensuring its continued ability to produce income (doesn't include mortgage payments or depreciation).
Property manager	$ 1,800	6.86 %
Repairs	$ 1,200	4.58 %
Association fees	$ 1,620	6.18 %
Property tax	$ 2,138	8.15 %
Insurance	$ 1,380	5.26 %
Total Expenses	$ 8,138	31.04 %
Net Operating Income Net Operating Income (NOI) Important measurement calculated as gross operating income minus operating expenses. Net Operating Income (NOI) Important measurement calculated as gross operating income minus operating expenses.	$ 18,082	68.96 %

Cash Flow (Year 1)

Net Operating Income	$ 18,082	68.96 %
Annual Debt Service	$ 20,941	79.87 %
Cash Flow Before Taxes (CFBT) Cash Flow All the inflows and outflows of cash for a certain property (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property. Cash Flow All the inflows and outflows of cash for a certain property (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property.	$ -2,859	-10.90 %
Income Tax Liability	$ -1,899	-7.24 %
Cash Flow After Taxes (CFAT) Cash Flow All the inflows and outflows of cash (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property. Cash Flow All the inflows and outflows of cash (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property.	$ -960	-3.66 %

Operating Ratios

Operating Expense Ratio Operating Expense Ratio Ratio of the operating expenses to the gross operating income (GOI). Operating Expense Ratio Ratio of the operating expenses to the gross operating income (GOI).	31.04 %
Break-Even Ratio Break-Even Ratio (BER) Another benchmark used by mortgage lenders, estimating how vulnerable is a certain property to defaulting on its mortgage if part of the rental income is declined. Most of the lenders are looking for BER of 85% or less. Break-Even Ratio (BER) Another benchmark used by mortgage lenders, estimating how vulnerable is a certain property to defaulting on its mortgage if part of the rental income is declined. Most of the lenders are looking for BER of 85% or less.	110.90 %

Financial Measures

Net Present Value Net Present Value (NPV) Probably the best measure of any investment thanks to its complexity; taking into account all future cash flows including the selling price, and it converts all these amounts to their present values using discount rate required by the investor. More information and an example on the blog. Net Present Value (NPV) Probably the best measure of any investment thanks to its complexity; taking into account all future cash flows including the selling price, and it converts all these amounts to their present values using discount rate required by the investor. More information and an example on the blog.	$ 110,890
Internal Rate of Return Internal Rate of Return (IRR) Rate which an investment will return over the estimated period of ownership. It is in fact the discount rate that produces NPV of zero. Internal Rate of Return (IRR) Rate which an investment will return over the estimated period of ownership. It is in fact the discount rate that produces NPV of zero.	17.47 %
Profitability Index Profitability Index Similar to NPV, also calculates with the present values of future cash flows and discount rate. It shows whether the present value of the cash flows is worth the initial investment. Good investment should be above 1.0 Profitability Index Similar to NPV, also calculates with the present values of future cash flows and discount rate. It shows whether the present value of the cash flows is worth the initial investment. Good investment should be above 1.0	3.13
Annual Depreciation	$ 13,379

Holding period of 10 years and discount rate of 5.00% 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 Cash on Cash Return Ratio between annual cash flow before taxes and the total initial investment, expressed as a percentage. It does not take in account the future value of money. Cash on Cash Return Ratio between annual cash flow before taxes and the total initial investment, expressed as a percentage. It does not take in account the future value of money.	-5.50 %
Return on Investment Return on Investment Very similar to Cash on Cash Return, but also takes in account appreciation of the property in the first year. Return on Investment Very similar to Cash on Cash Return, but also takes in account appreciation of the property in the first year.	21.04 %
Capitalization Rate Capitalization Rate Calculated as ratio of the net operating income and the value of the property. Capitalization Rate Calculated as ratio of the net operating income and the value of the property.	3.93 %
Gross Rental Yield Gross Rental Yield Used for a particular property or also as a market indicator when using median values of rent and house prices - counted from gross scheduled rent and initial investment. Gross Rental Yield Used for a particular property or also as a market indicator when using median values of rent and house prices - counted from gross scheduled rent and initial investment.	6.00 %
Gross Rent Multiplier Gross Rent Multiplier (GRM) Counted as a ratio of market value of the property and gross scheduled income. Gross Rent Multiplier (GRM) Counted as a ratio of market value of the property and gross scheduled income.	16.66

Financing
Down Payment		$ 45,990
Loan		$ 413,910
Loan to Value Ratio Loan to Value Ratio Shows sum of all purchase and rehab loans divided by purchase price. Loan to Value Ratio Shows sum of all purchase and rehab loans divided by purchase price.		90.00 %
Loan to Cost Ratio Loan to Cost Ratio Shows sum of all purchase and rehab loans to construction cost (purchase price + repairs). Loan to Cost Ratio Shows sum of all purchase and rehab loans to construction cost (purchase price + repairs).		90.00 %
Debt Coverage Ratio		0.86

Loan Financing of: Purchase price ($ 459,900)
Type	Amortized
Loan Amount	$ 413,910
Down payment (10%)	$ 45,990
Amortization	30 years
Interest Rate	3.00 %
Monthly Payment	$ 1,745.06

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	0	1	2	3	4	5	6	7	8	9	10
Operational Analysis
Gross Scheduled Income	0	27,600	28,152	28,715	29,289	29,875	30,473	31,082	31,704	32,338	32,985
Vacancy Loss	0	1,380	1,408	1,436	1,464	1,494	1,524	1,554	1,585	1,617	1,649
Gross Operating Income	0	26,220	26,744	27,279	27,825	28,381	28,949	29,528	30,119	30,721	31,335
Expenses	0	8,138	8,301	8,467	8,636	8,809	8,985	9,165	9,348	9,535	9,726
Net Operating Income	0	18,082	18,444	18,813	19,189	19,573	19,964	20,363	20,771	21,186	21,610
Loan Payment	0	20,941	20,941	20,941	20,941	20,941	20,941	20,941	20,941	20,941	20,941
Payment Interest Part	0	12,299	12,036	11,765	11,486	11,199	10,902	10,597	10,283	9,958	9,624
Payment Principal Part	0	8,642	8,904	9,175	9,454	9,742	10,038	10,344	10,658	10,982	11,316
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-51,990	-2,859	-2,497	-2,128	-1,752	-1,368	-977	-577	-170	245	669
Depreciation	0	13,379	13,379	13,379	13,379	13,379	13,379	13,379	13,379	13,379	13,379
Taxes	0	-1,899	-1,743	-1,583	-1,419	-1,251	-1,079	-903	-723	-538	-348
Cash Flow After Taxes	-51,990	-960	-754	-545	-333	-117	103	326	553	783	1,017

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%)	$ 618,067
Cap Rate (3.93%) & NOI	$ 549,864
Gross Rent Multiplier	$ 549,523

Sale Proceeds

Projected Selling Price	$ 618,067
Costs of Sale (6.00%)	$ 37,084
1. Loan Balance Payoff	$ 314,654
Net Sale Proceeds Before Tax	$ 266,329

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	$ 266,329
Investor Cash Outlay	$ 51,990
Net Assets	$ 214,339
Average Yield
Annual Net Assets	$ 21,434
Average Cash Flow (After Taxes)	$ -94
Average Annual Gain (After Taxes)	$ 21,339
Average Annual Yield (After Taxes)	4.64 %

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.

Property Report: 2131 Bluehaven Ct, San Diego RENTAL

Property Report :

2131 Bluehaven Ct, San Diego, CA 92154

Executive Summary