4016 Rubidoux Dr, Las Vegas, 89108

8/4/2019 4016 Rubidoux Dr, Las Vegas, 89108

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IdealHomeBrokers

PropertyOfferingReport 1of4

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(949)351-6913

4016RUBIDOUXDR,LASVEGAS,89108

3bedroom2Fbath1811SFhomebuiltin1980

84,900$ Askingprice

Notes:

1 975$ Rent(seepage2forcomparables)

2 284$ Expenses(seepage2fordetail)

3 692$ Monthlynetoperatingincome

8,298$ Yearlynetincome

84,900$ Askingprice(Investment)

4 9.8% CapitalizationRate=netincome/askingprice

5 148,611$ Resalevalueinyear10(netof8%liquidationcosts)

63,711$ Profitfromsaleinyear10

6 14.0% InternalRateofReturn

Notes: 30-yearfixed 15-yearfixed$84,900 Askingprice $84,900

7 $67,920 Maximumloan $67,920

8 $16,980 Downpayment $16,980

9 5.00% Investmentloaninterestrate 4.50%

1 975$ Rent 975$

2 284$ Expenses 284$

3 692$ Monthlynetincome 692$

10 365$ Payment 520$

11 327$ Monthlycashflow 172$12 82$ Principalamortizationinpayment 265$

13 409$ Cashflowplusamortization 437$

4,902$ Yearlycashflowplusamortization 5,242$

8 16,980$ Downpayment(Investment) 16,980$

14 28.9% Cash-On-CashReturn=cashflow/downpayment 30.9%

5 93,593$ CashatSaleinyear10(profitplusamortization) 120,845$

6 37.7% InternalRateofReturn 40.9%

Financedpurchase

All-cashpurchase



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Notes: Calculations Terms

1 975$ Rent

CashOperatingExpenses

15 75$ PropertyTax 1.0%

16 50$ HomeownersInsurance 0.65%

17 -$ HomeownersAssociationFees varies

18 59$ PropertyManagementFees(%ofGrossRent) 6.0%

-$ OtherExpenses

19 184$ MonthlyCashExpenses 18.8%

ReserveExpenses

20 55$ MaintenanceandReplacementReserves 5.6%

21 45$ VacancyandCollectionLoss 4.6%

100$ MonthlyReserveExpenses 10.3%

284$ TotalExpenses 29.1%

3 692$ NetOperatingIncome 70.9%

ComparableResales ResaleDate Amount

4125MONTEMESACR--2bed2bath1557SF--1980List:$74900 7/8/11 76,500$

6616ROYROGERSDR--4bed2bath1338SF--1984List:$63900 6/17/11 64,000$

6516OUIDAWY--3bed2bath1253SF--1983List:$84900 6/3/11 84,900$


4117RUBIDOUXDR--3bed2bath1468SF--1980List:$82900 3/14/11 92,000$


ComparableRentals LeaseDate Amount

6608NEVADACLASSICCR--4bed3bath1742SF--1994List:$1050 7/26/11 1,050$

4766BAYHAMABBEYCT--4bed4bath1686SF--2007List:$1095 6/10/11 1,095$

4521LEMONGEMSCT--4bed3bath1916SF--2008List:$1049 4/21/11 1,049$

4782PRIORYGARDENSST--4bed3bath1686SF--2007List:$1100 3/10/11 1,100$

4774MEREWORTHCT--3bed4bath1686SF--2006List:$1050 8/12/10 1,350$6600NEVADACLASSICCR--4bed3bath1742SF--1994List:$1100 6/14/10 1,050$

4777MEREWORTHCT--3bed4bath1686SF--2006List:$1150 7/22/10 1,150$

GeneralDisclaimer

NetOperatingIncomeDetail

ThisreportrepresentstheconsideredopinionofIdealHomeBrokers.Wemakenoguarantee,warrantyorrepresentation

aboutit.Anyprojections,opinions,assumptionsorestimatesmaynotrepresentthecurrentorfutureperformanceofthe

property.Youandyouradvisorsshouldconductacareful,independentinvestigationofthepropertytodeterminetoyour

satisfactionthesuitabilityofthepropertyforyourneeds.



IdealHomeBrokers


[email protected]

(949)351-6913

Projected10-yearappreciationtonearrentalparitywithliquidationresale

FinancingTermsandCash-On-CashReturns

0.0%

5.0%10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

C a s h - O n - C a s h R e t u r n

I nt er est Rat e

lowerinterestrates

generatehigherreturns

lowerinterestrates


lowerinterestrates


lowerinterestrates

generatehigherreturns lowerdownpayments


$166,729

$213,427

$84,900

$161,534

$-

$50,000

$100,000

$150,000

$200,000

$250,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

RentalParity ResaleValue

2.5%annualrentgrowth

3yeartroughtobreakeven

5yearsofdouble-digit

appreciaon

Undervaluaon

Resalenear

rentalparity

inyear10



IdealHomeBrokers


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(949)351-6913

Notes:

1

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21 VacancyandCollectionLossisanallowancefortenantturnover.

TheInternalRateofReturnevaluatesthetimingandtheamountofeachsourceofincomeandcalculatesaratewhichwould

balancethesevarioussourcesofincomewiththeinitialinvestment.IRRisthebestmethodforcalculatingthereturnson

investmentswithvariableincome.

Estimatedmaintenanceandreplacementreserves.Thesearehigherinsingle-familydetachedhomesandinolderproperties.

Homeownersassociationduesfrompropertyinvestigation.

Propertymanagementfeesvary,but8%-10%ofthemonthlyrentisacommonfee.

Summaryofexpensesfrompage2

TheCash-On-CashReturnissimilartoacapitalizationrateinthatitshowsareturnoninvestment,butitismeasuredby

comparingtheTotalProfitandLossafterExpenses,DebtandTaxesandcomparesthattothecashinvestment.Thisisthe

importantrateofreturnforinvestorswhoarenotpurchasingwithallcash.Aslongasdebtislessexpensivethanthecaprate,thecash-on-cashreturnscanbemagnifiedbyincreasingdebt.Thisisanappropriateuseofleveragetoincrease

investmentreturns.

Thisisthepropertytaxamountsetbythelocaljurisdiction.

Maximumloanbasedonlenderlimitationsoravailablecashflow.Generallysmallerfor15-yearamortization.

Thedownpaymentreflectstheminimumup-frontinvestmentrequiredbasedonfinancinglimitations.

Thisisthecalculatedprincipalamortizationinthefirstpayment.Thisamountincreasesinsubsequentpayments.

Theactualmonthlygainincludesbothleft-overcashflowandamortizationintheloan.

Monthlycashexpensesaretheactualoutlaysofcasheachmonthtosupporttheproperty.

Themonthlypaymentisthebasedonthelargestloanalenderoffersthatstillprovidesforpositivecashflow

Estimatedhomeownersinsurance.

Thecapitalization(cap)rateisthe(yearly)NetOperatingIncomedividedbythepurchaseprice.Itisthesimplestmeasureof

aninvestment'sfinancialperformance,anditprovidesaconvenientcomparisontocompetinginvestmentalternatives.Acap

rateislikeaninterestrateonacheckingaccount,amutualfundreturn,orabondyield.Thecaprateisinverselyrelatedto

price;inotherwords,highcapratesaresynonymouswithlowpricesandvisaversa.Thecaprateaninvestorwillaccept

variesfrompersontoperson.Thereisnosingleappropriateratetoapplytovalue.Instead,weshowarangeofvaluesat

differentcapratestoshowthecurrentinvestmentreturnsomeonecanexpectfromthisproperty.

GrossRentisestimatedfromcomparablerentalsortakenfromactualrentrolls.

NetOperatingIncomeistherentalincomeminusthecashexpenses.Thisfigureisindependentoftaxesorfinancingwhich

varyconsiderablyfromdealtodeal.Manyrentalpropertiesarepurchasedwithoutdebt,andtheNetOperatingIncomeis

necessarytocomputetheCapitalizationRate.

Mortgageinterestratesvarybasedonamortizationschedule.Thequickertheloanamortizes,thelowertheinterestrate.

Themonthlycashflowshowstheamountleftoverafterallpaymentsandreserveshavebeenmet.

Theresalevalueatinyear10assumespricesappreciatestronglyafterthesupplyproblemsareresolved.(seepage3).

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4016 Rubidoux Dr, Las Vegas, 89108