3931 33rd St, San Diego CA 92104

3931 33rd St, San Diego, CA 92104

Multifamily: 12 bedrooms , 8 bathrooms

Year built: 1990, Size: 3828 SF

Investment strategy: Rental Property

Purchase Price$ 2,100,000

Rent$ 12,600/mo

Monthly Cash Flow$ 1,199

Cash on Cash Return1.51 %

Financial Analysis

Cash on Cash Return	1.51 %
Internal Rate of Return (IRR)	8.03 %
Capitalization Rate	5.47 %
Gross Rent Multiplier (GRM)	13.89
Debt-coverage Ratio (DCR)	1.14
Operating Expense Ratio (OER)	20.02 %

Financial Breakdown

Purchase Price	$ 2,100,000
Purchase Costs	$ 6,000
Repair/Construction Costs	$ 3,000
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 2,109,000
Financing	$ 1,155,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 954,000
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.	$ 945,000
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.	$ 9,000

Operating Analysis

Rent	$ 12,600/mo
Gross Operating Income (GOI)	$ 143,640
Total Expenses	$ 28,760
Net Operating Income (NOI)	$ 114,880
Annual Debt Service	$ 100,495
Cash Flow Before Taxes (CFBT)	$ 14,385
Income Tax Liability	$ -9,204
Cash Flow After Taxes (CFAT)	$ 23,589

REDUCED $100K (10/25)! RARE FIND FOURPLEX offering four 3bed/2bath units fully rented with long-term leases! Located in the heart of San Diego with ample access to freeways, transportation, jobs, entertainment, and North Park nightlife blocks away. All units in great shape with two offering new kitchens installed within the last year. The property was completely rebuilt in 1990 (no cast-iron!). Property location qualifies the subject for add-value considerations under the Complete Communities zone (subject tier 3 FAR 6.5), Transit Priority Area zone, and the Opportunity Zone, which may qualify for substantial tax benefits. Tesla Solar installed passes on thousands of dollars in savings each year towards tenant electric bills Dont miss your chance to own a fantastic long-term rental with strong rents and leases in place!

Purchase Price	$ 2,100,000
Address	3931 33rd St , San Diego, 92104, CA
MLS^® #	230019372
Listing Agent	Nick Emerson
Year Built	1990
Type	Multifamily
Number of Units
Size	3828 SF
Bedrooms	12
Bathrooms	8

Property History

Date	Price	Event
11/5/2023	2168800	Price Changed
10/24/2023	2068800	Price Changed
10/1/2023	2168800	Listed
5/26/2023		Listing removed
5/18/2023	1900000	Sold
4/13/2023	1895000	Listed
5/1/2018	86000	Sold
3/14/2017	1295000	Sold
1/20/2017	1295000	Relisted
12/26/2016	1300000	Listing removed
12/22/2016	1300000	Price Changed
12/13/2016	1350000	Relisted
12/11/2016	1350000	Listing removed
11/21/2016	1350000	Price Changed
10/23/2016	1395000	Listed
5/31/2001	485000	Sold
1/2/2000	346000	Sold
11/28/1989	395000	Sold
12/22/1988	130000	Sold
10/23/1986	77500	Sold

Unit	Rent
1	$ 3,000/mo
2	$ 3,300/mo
3	$ 3,000/mo
4	$ 3,300/mo

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.	$ 151,200
Total Gross Income	$ 151,200
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.	$ 7,560
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.	$ 143,640	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	$ 11,491	8.00 %
Property tax	$ 17,269	12.02 %
Total Expenses	$ 28,760	20.02 %
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.	$ 114,880	79.98 %

Cash Flow (Year 1)

Net Operating Income	$ 114,880	79.98 %
Annual Debt Service	$ 100,495	69.96 %
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.	$ 14,385	10.01 %
Income Tax Liability	$ -9,204	-6.41 %
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.	$ 23,589	16.42 %

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).	20.02 %
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.	89.99 %

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.	$ 579,385
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.	8.03 %
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	1.61
Annual Depreciation	$ 61,091

Holding period of 20 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.	1.51 %
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.	8.11 %
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.	5.47 %
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.	7.20 %
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.	13.89

Financing
Down Payment		$ 945,000
1		$ 1,155,000
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.		55.00 %
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).		54.92 %
Debt Coverage Ratio		1.14

1 Financing of: Purchase price ($ 2,100,000)
Type	Amortized
Loan Amount	$ 1,155,000
Down payment (45%)	$ 945,000
Amortization	30 years
Interest Rate	7.88 %
Monthly Payment	$ 8,374.55

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	11	12	13	14	15	16	17	18	19	20
Operational Analysis
Gross Scheduled Income	0	151,200	154,224	157,308	160,455	163,664	166,937	170,276	173,681	177,155	180,698	184,312	187,998	191,758	195,593	199,505	203,495	207,565	211,717	215,951	220,270
Vacancy Loss	0	7,560	7,711	7,865	8,023	8,183	8,347	8,514	8,684	8,858	9,035	9,216	9,400	9,588	9,780	9,975	10,175	10,378	10,586	10,798	11,014
Gross Operating Income	0	143,640	146,513	149,443	152,432	155,481	158,590	161,762	164,997	168,297	171,663	175,096	178,598	182,170	185,814	189,530	193,321	197,187	201,131	205,153	209,256
Expenses	0	28,760	29,335	29,922	30,521	31,131	31,754	32,389	33,036	33,697	34,371	35,059	35,760	36,475	37,204	37,948	38,707	39,482	40,271	41,077	41,898
Net Operating Income	0	114,880	117,177	119,521	121,911	124,350	126,837	129,373	131,961	134,600	137,292	140,038	142,839	145,695	148,609	151,581	154,613	157,705	160,859	164,077	167,358
Loan Payment	0	100,495	100,495	100,495	100,495	100,495	100,495	100,495	100,495	100,495	100,495	100,495	100,495	100,495	100,495	100,495	100,495	100,495	100,495	100,495	100,495
Payment Interest Part	0	90,604	89,797	88,923	87,978	86,956	85,851	84,655	83,362	81,963	80,449	78,813	77,042	75,127	73,056	70,815	68,392	65,770	62,935	59,868	56,551
Payment Principal Part	0	9,890	10,698	11,571	12,516	13,538	14,644	15,840	17,133	18,532	20,045	21,682	23,452	25,367	27,439	29,679	32,103	34,724	37,560	40,627	43,944
Cash Flow
Repairs/Construction	3,000	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-954,000	14,385	16,683	19,026	21,417	23,855	26,342	28,879	31,466	34,105	36,797	39,543	42,344	45,201	48,115	51,087	54,118	57,211	60,365	63,582	66,864
Depreciation	0	61,091	61,091	61,091	61,091	61,091	61,091	61,091	61,091	61,091	61,091	61,091	61,091	61,091	61,091	61,091	61,091	61,091	61,091	61,091	61,091
Taxes	0	-9,204	-8,428	-7,623	-6,789	-5,924	-5,026	-4,093	-3,123	-2,113	-1,062	34	1,176	2,369	3,616	4,919	6,283	7,711	9,208	10,779	12,429
Cash Flow After Taxes	-954,000	23,589	25,110	26,650	28,206	29,779	31,368	32,972	34,589	36,219	37,860	39,510	41,168	42,831	44,499	46,168	47,836	49,500	51,156	52,803	54,434

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 20 years. Below is the resale price calculated using different methods.

Appreciation (3.00%)	$ 3,792,834
Cap Rate (5.47%) & NOI	$ 3,059,565
Gross Rent Multiplier	$ 3,059,548

Sale Proceeds

Projected Selling Price	$ 3,792,834
Costs of Sale (6.00%)	$ 227,570
1. Loan Balance Payoff	$ 694,015
Net Sale Proceeds Before Tax	$ 2,871,249

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	$ 2,871,249
Investor Cash Outlay	$ 954,000
Net Assets	$ 1,917,249
Average Yield
Annual Net Assets	$ 95,862
Average Cash Flow (After Taxes)	$ 36,091
Average Annual Gain (After Taxes)	$ 131,953
Average Annual Yield (After Taxes)	6.28 %

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: 3931 33rd St, San Diego RENTAL

Property Report :

3931 33rd St, San Diego, CA 92104

Executive Summary