Property Report :

4025 Oakcrest Dr Pacific Cove 81 units

4025 Oakcrest Dr, San Diego, CA 92105

Real Estate Analysis

Created on: Apr 16, 2025

Author: Robert Oram

Company: MHR Properties Co.

4025 Oakcrest Dr, San Diego, CA 92105

Multifamily:

Year built: 1988, Size: 44000 SF

Investment strategy: Rental Property

A large 81 unit complex in San Diego near very good communities.

Purchase Price$ 20,000,000

Rent$ 137,000/mo

Monthly Cash Flow$ 114,178

Cash on Cash Return6.54 %

Financial Analysis

Cash on Cash Return	6.54 %
Internal Rate of Return (IRR)	7.49 %
Capitalization Rate	5.48 %
Gross Rent Multiplier (GRM)	15.21
Debt-coverage Ratio (DCR)	0.00
Operating Expense Ratio (OER)	17.15 %
After Repair Value	$ 25,000,000
Profit/Equity From Rehab	$ 4,040,000

Financial Breakdown

Purchase Price	$ 20,000,000
Purchase Costs	$ 160,000
Repair/Construction Costs	$ 800,000
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 20,960,000
Financing	$ 0
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 20,960,000
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.	$ 0
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.	$ 20,960,000

Operating Analysis

Rent	$ 137,000/mo
Gross Operating Income (GOI)	$ 1,653,840
Total Expenses	$ 283,700
Net Operating Income (NOI)	$ 1,370,140
Annual Debt Service	$ 0
Cash Flow Before Taxes (CFBT)	$ 1,370,140
Income Tax Liability	$ 197,081
Cash Flow After Taxes (CFAT)	$ 1,173,060

Although the broker doesn't list the price, assuming the NOI is accurate and we place a 5 CAP, it would make the value around $23,350,000. Depending on how long it has been on the market and what type of leases exist, we could offer a cash price of $20,000,000. As for rent bumps, there is a lot of extra income from raising rents. I'm looking at $204,000 in extra rent income per year. There is a laundry room but is a waste since the units have a W/D so I'm thinking of turning that space into a vending machine room to act as a super convenient grocery store for the residents. We can own the machines and I can buy the items wherever I find the best deals. This could generate an extra $5000/mth or $60,000yr in clear profits! R&M is extremely high at $146k and would need to be investigated. I can get several GC's to come out and inspect and give quotes on what's needed for renovations so that annual R/M can go down to about 8-10% of total rent/yr. I would have to look into specific costs like utilities, which we can shave off $90k per year and say $5k/yr is used up for operating the building maybe or a little more. Turnover costs would have to be mitigated and SWT can be switched to the tenants to pay for rather than the landlord. If we set aside 200-400k in renovation to include modernizing the units and creating a private park and a nice pool and BBQ areas and a children's playground, these amenities will raise the value of the property a lot. There is a property mgmt fee of $65,000 that you will save since I will handle the property at no charge. This will further increase the overall NOI. I can shave off $5,000 in insurance annually by shopping around. We can invite a few phone carriers to install antennas on the roof and this could generate an extra $5000/mth or $60k/yr in income. Why not! Let's make use of the entire property. We can also add a few billboard signs and do digital advertising services and that could easily generate $10,000/mth or $120k/yr! But first, I would have to look at if more floors can be built on top to have more units and do a cost/revenue analysis of each scenario to compare with. Another unusual but cool feature is possibly having a helipad on top for emergency services or business people who don't want to land at some airport to get closer to places. This can be a landing fee charge (TBD). I would have to look at the cost to land at various airports to compare. All these things can add further value. By the way, when it's time to sell the property, we can stipulate the antennae and billboards are not included in the sale!

Purchase Price	$ 20,000,000
Address	4025 Oakcrest Dr , San Diego, 92105, CA
Year Built	1988
Type	Multifamily
Number of Units	81
Size	44000 SF

4025 Oakcrest Dr San Diego, CA 92105

$ 137,000

Rent
Multifamily

Bldg type
44,000

SqFt

Your rent may be too high.

Average

$ 2,332

Median

$ 2,195

25th %

$ 2,002

75th %

$ 2,663

#	Property address	Similarity	Distance	Beds	Baths	Date Listed	Bldg type	Rent
1	4130 Altadena Dr, Apt 32	68%	0.2mi	2	1	1/15/2023	Apartment	$ 1,995
2	4130 Altadena Ave, Apt 32	68%	0.2mi	2	2	10/13/2022	Apartment	$ 1,995
3	4065 49th St	67%	0.3mi	2	1	9/8/2022	Apartment	$ 1,790

You can edit, sort, drag and reorder suggested comps below. Select the comps you want to include in the report. You can also add comps manually.

Property address	Similarity	Distance	Beds	Baths	Date Listed	Bldg type	Rent
4025 Oakcrest Dr	68%	0.0mi	0	1	12/29/2022	Apartment	$ 1,499
3867-73 50th St	68%	0.1mi	2	2	1/5/2023	Apartment	$ 1,700
4082-4088 51st St	68%	0.1mi	0	1	10/30/2022	Apartment	$ 1,365
5020 Wightman St	68%	0.2mi	1	1	1/15/2023	Apartment	$ 1,325
4130 Altadena Dr, Apt 32	68%	0.2mi	2	1	1/15/2023	Apartment	$ 1,995
5048 Wightman St	68%	0.2mi	1	1	11/29/2022	Apartment	$ 1,550
4130 Altadena Ave, Apt 32	68%	0.2mi	2	2	10/13/2022	Apartment	$ 1,995
4065 49th St	67%	0.3mi	2	1	9/8/2022	Apartment	$ 1,790
4162 51st St	67%	0.3mi	1	1	8/17/2022	Apartment	$ 1,595
3704 Altadena Ave	67%	0.4mi	1	1	1/3/2023	Apartment	$ 1,750

Comps selected: 3

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.	$ 1,644,000
Other Income	$ 72,000
EV Stations	$ 3,600
Total Gross Income	$ 1,719,600
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.	$ 65,760
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.	$ 1,653,840	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).
Insurance	$ 15,000	0.91 %
Repairs	$ 50,000	3.02 %
Property tax	$ 150,000	9.07 %
Payroll	$ 52,000	3.14 %
Marketing	$ 7,000	0.42 %
General Admin	$ 9,700	0.59 %
Total Expenses	$ 283,700	17.15 %
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.	$ 1,370,140	82.85 %

Cash Flow (Year 1)

Net Operating Income	$ 1,370,140	82.85 %
Annual Debt Service	$ 0	0.00 %
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.	$ 1,370,140	82.85 %
Income Tax Liability	$ 197,081	11.92 %
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.	$ 1,173,060	70.93 %

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).	17.15 %
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.	17.15 %

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.	$ 6,114,810
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.	7.49 %
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	1.29
Annual Depreciation	$ 581,818

Holding period of 15 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.	6.54 %
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.	9.40 %
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.	5.48 %
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.	8.22 %
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.	15.21

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	0	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15
Operational Analysis
Gross Scheduled Income	0	1,719,600	1,752,480	1,786,018	1,820,226	1,855,118	1,890,709	1,927,011	1,964,039	2,001,808	2,040,332	2,079,627	2,119,707	2,160,590	2,202,289	2,244,823
Vacancy Loss	0	65,760	67,075	68,417	69,785	71,181	72,604	74,056	75,538	77,048	78,589	80,161	81,764	83,400	85,068	86,769
Gross Operating Income	0	1,653,840	1,685,405	1,717,601	1,750,441	1,783,938	1,818,105	1,852,955	1,888,502	1,924,760	1,961,743	1,999,466	2,037,943	2,077,190	2,117,222	2,158,054
Expenses	0	283,700	289,374	295,161	301,065	307,086	313,228	319,492	325,882	332,400	339,048	345,829	352,745	359,800	366,996	374,336
Net Operating Income	0	1,370,140	1,396,031	1,422,439	1,449,376	1,476,852	1,504,877	1,533,462	1,562,620	1,592,360	1,622,695	1,653,637	1,685,198	1,717,390	1,750,226	1,783,718
Cash Flow
Repairs/Construction	800,000	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-20,960,000	1,370,140	1,396,031	1,422,439	1,449,376	1,476,852	1,504,877	1,533,462	1,562,620	1,592,360	1,622,695	1,653,637	1,685,198	1,717,390	1,750,226	1,783,718
Depreciation	0	581,818	581,818	581,818	581,818	581,818	581,818	581,818	581,818	581,818	581,818	581,818	581,818	581,818	581,818	581,818
Taxes	0	197,081	203,553	210,155	216,890	223,758	230,765	237,911	245,200	252,635	260,219	267,955	275,845	283,893	292,102	300,475
Cash Flow After Taxes	-20,960,000	1,173,060	1,192,478	1,212,284	1,232,487	1,253,093	1,274,112	1,295,551	1,317,419	1,339,724	1,362,476	1,385,682	1,409,353	1,433,497	1,458,124	1,483,243

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 15 years. Below is the resale price calculated using different methods.

Specific Resale Price	$ 30,000,000
Appreciation (3.00%)	$ 38,949,185
Cap Rate (5.48%) & NOI	$ 32,549,599
Gross Rent Multiplier	$ 34,143,759

Sale Proceeds

Projected Selling Price	$ 30,000,000
Costs of Sale (6.00%)	$ 1,800,000
Net Sale Proceeds Before Tax	$ 28,200,000

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	$ 28,200,000
Investor Cash Outlay	$ 20,960,000
Net Assets	$ 7,240,000
Average Yield
Annual Net Assets	$ 482,667
Average Cash Flow (After Taxes)	$ 1,222,623
Average Annual Gain (After Taxes)	$ 1,705,289
Average Annual Yield (After Taxes)	8.53 %

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: 4025 Oakcrest Dr Pacific Cove 81 units RENTAL PUBLISHED

Property Report :

4025 Oakcrest Dr Pacific Cove 81 units

4025 Oakcrest Dr, San Diego, CA 92105

Executive Summary

4025 Oakcrest Dr, San Diego, CA 92105

Financial Analysis

Financial Breakdown

Total Capital Needed

Total Capital Needed

Cash out of Pocket

Cash out of Pocket

Cash at Closing

Cash at Closing

Cash During Rehab

Cash During Rehab

Operating Analysis

Property Description

Comparative Rental Analysis

$ 137,000

Rent

Multifamily

Bldg type

44,000

SqFt

Rentometer®

Rentometer®

Operating Analysis

Annual Property Operating Data

Gross Scheduled Income (GSI)

Gross Scheduled Income (GSI)

Vacancy and Credit Loss

Vacancy and Credit Loss

Gross Operating Income (GOI)

Gross Operating Income (GOI)

Operating Expenses

Operating Expenses

Net Operating Income (NOI)

Net Operating Income (NOI)

Cash Flow (Year 1)

Cash Flow

Cash Flow

Cash Flow

Cash Flow

Operating Ratios

Operating Expense Ratio

Operating Expense Ratio

Break-Even Ratio (BER)

Break-Even Ratio (BER)

Financial Analysis

Financial Measures

Net Present Value (NPV)

Net Present Value (NPV)

Internal Rate of Return (IRR)

Internal Rate of Return (IRR)

Profitability Index

Profitability Index

Investment Return Ratios

Cash on Cash Return

Cash on Cash Return

Return on Investment

Return on Investment

Capitalization Rate

Capitalization Rate

Gross Rental Yield

Gross Rental Yield

Gross Rent Multiplier (GRM)

Gross Rent Multiplier (GRM)

Financing Overview

Long-term Cash Flow Forecast

Resale Analysis

Resale Price Evaluation Methods

Sale Proceeds

Net Assets and Yield

Photos

Rentometer^®

Rentometer^®