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6/2/2016 Spring 2016
By,
Keith Arky
Hannah Nguyen
Tyler Norgord
Cynthia Jaramillo
We Are:
Committed to offering a variety of programs and services in order to
successfully cater to each and every client
Growing exceptionally fast as one of the newest real estate
investment firms in the Greater Los Angeles Area
A recent Fortune 500 company entrant
Focused on producing win-win outcomes for all parties involved in
order for continued future success
2424 Beverly Blvd. Suite 111
Monterey Park, CA 91755
Office: (626) 371-4890
Fax: (626) 371-4896
9am-6pm Monday-Sunday
Open 365 daysEmpireInvestments.com
Bio Sketch
QUALIFICATIONS:
• Real Estate Broker License
• Bachelor’s Degree in Architecture
• Southern California Institute of Architecture 2007
• Bachelor’s Degree in Business Administration & Real Estate
• California State University, Los Angeles 2011
• Over 5 years of hands-on experience
• Able to communicate using both the languages of
architecture and business
• Well-rounded approach sets him apart from other
business/design-minded individuals
As of today, Keith serves as a major asset in our company within the field of real estate
development, asset management and architectural design consultation.
K E I T H A R K Y
PARTNER
Phone: (805) 794-5555
Email: Keitharky@Empire.com
Bio Sketch
QUALIFICATIONS:
• Bachelor’s Degree in Business Administration & Finance
• Minor in Real Estate
• California State University, Los Angeles 2011
• Over 4 years experience as a Financial Advisor and Real
Estate Investment.
• CFO of Associated Students Incorporated
Hannah serves as a major asset in our company within the field of financial advisory and investment
consultation.
H A N N A H N G U Y E N
PARTNER
Phone: (626) 588-5555
Email: Hannahnguyen@Empire.com
Bio Sketch
QUALIFICATIONS:
• Bachelors of Science in Finance & Real Estate
• California State University, Los Angeles 2011
• Real Estate License
• Over 5 years of hands-on experience
• Able to communicate using both the languages of
finance and real estate
• Currently working towards completion of the CFA in
order to improve all aspects of our company
Tyler utilizes his leading expertise and ability to improve the functionality of the company and to
expand on our ability to communicate with our clients
T Y L E R N O R G O R D
PARTNER
Phone: (626) 716-5555
Email: Tylernorgord@Empire.com
Bio Sketch
QUALIFICATIONS:
• Bachelor’s Degree in Business Administration & Finance
• Minor in Real Estate
• California State University, Los Angeles 2010
• Over 5 years experience with the company
• Currently resides in La Habra Heights, CA with her dog,
Caramel
As of today, Cynthia serves as a major asset in our company within the field of finance and real
estate consultation.
C Y N T H I A J A R A M I L L O
PARTNER
Phone: (626) 588-5555
Email: CynthiaJaramillo@Empire.com
Why ?
We specialize in single-family residential homes
We have many offices throughout the Greater Los Angeles area
• Allows for geographic location specialization
We provide excellent quality service
We find the most qualified properties
Most importantly… We work for YOU!
Los Angeles County Overview
• THE MOST POPULOUS COUNTY IN THE UNITED STATES
• 25% of California Population
• Popular Destinations:
• Museums:
• Museum of Contemporary Art
• The J. Paul Getty Center
• Entertainment:
• Dodger Stadium
• STAPLES Center
• Music Venues:
• The Wiltern
• Hollywood Bowl
Key Statistics
Source: http://www.sports-logos-
screensavers.com/LosAngelesDodgers.html
Source: https://en.wikipedia.org/wiki/Los_Angeles_County,_California
Source: https://en.wikipedia.org/wiki/San_Bernardino_County,_California
• The Largest county in the contiguous U.S
• 20,000+ square miles
• 24 cities
• Population: 2,076,275
Key Statistics
Source: http://www.tngrealestate.com/san-bernardino-county/
Orange County Overview
• 3rd most densely populated county in California, and
6th in the State
• County’s 4 major Cities :
• Anaheim
• Santa Ana
• Irvine
• Huntington Beach
• Popular Destination:
• Disneyland
• Knott's Berry Farm
• Angels Stadium
• Multiple beaches along its 40 mile coastline
Key Statistics
Source:
https://en.wikipedia.org/wiki/Orange_County,_California#/
media/File:Seal_of_Orange_County,_California.svg
Source: https://en.wikipedia.org/wiki/Orange_County,_California`` Source: https://en.wikipedia.org/wiki/Orange_County,_California``
La Habra Heights City Overview
➢In Los Angeles County and founded in 1978
➢Located just 25 miles southeast of downtown Los Angeles.
➢Far distance from highway Systems.
➢Connected with Highway 5, 605, 60 and 57 by other city neighborhoods.
Regional Map Local Map
Source:
https://en.wikipedia.org/wiki/California_State_Route_57
https://en.wikipedia.org/wiki/California_State_Route_60
https://en.wikipedia.org/wiki/Interstate_605
https://en.wikipedia.org/wiki/Interstate_5
https://www.google.com/maps/place/La+Habra+Heights,+CA/@33.9343966,-117.9370111,11.21z/data=!4m5!3m4!1s0x80c2d511136a13c7:0x70351d4f4153f00!8m2!3d33.9608461!4d-117.9506186!6m1!1e1
↓
↓
↓
Montclair City Overview
Source: http://www.zillow.com/san-bernardino-ca/home-values/
Southwestern San Bernardino
Yorba Linda City Overview
➢ Yorba Linda = “Beautiful Yorba”
➢ Early residents (1910-1920) came to Yorba Linda with the
intent of operating small farms
➢ Constructed numerous ranch houses, and planted citrus
groves: hard-working citizens
➢ Pacific Electric Railroad line between Yorba Linda and Los
Angeles was an important transportation link
➢ Yorba Linda growers could now easily get their produce to
a major produce market
➢ 1960's that Yorba Linda began experiencing the
tremendous population growth which the rest of Orange
County had been experiencing for the previous two
decades
Source: http://ci.yorba-linda.ca.us/index.php/information/city-facts?id=127:history-of-yorba-linda&catid=1
Source:
https://en.wikipedia.org/wiki/Yorba_
Linda,_California
• Comparing the county population trend with the California’s can show population growth over the period.
• San Bernardino is the county that represents the most significant increase of population from 1990 to 2015
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
County Population Trend (%) 1990 - 2015
Los Angeles
San Bernardino
Orange
California
County Population Trend
http://www.city-data.com
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
City Population Trend (%) 2000 - 2015
La Habra Heights
Montclair
Yorba Linda
California
City Population Trend
http://www.citypopulation.de/php/usa-census-admin.php?adm1id=CA
• Yorba Linda has the most increased population and is the most in line with the increase of California
• This is reflective of the economic growth of Orange County
County Household Size Trend
http://www.citypopulation.de/php/usa-census-admin.php?adm1id=CA
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
2000 2009 2010 2012 2014
County Household Size (%)
2000 - 2014
Los Angeles
San Bernardino
Orange
California
• These trends show that the Household Size of these three counties have been increasing since 2000
2.80
2.90
3.00
3.10
3.20
3.30
3.40
2000 2009 2010 2012 2014
County Household Size
2000 - 2014
Los Angeles
San Bernardino
Orange
California
City Household Size Trend
http://www.citypopulation.de/php/usa-census-admin.php?adm1id=CA
2.70
2.90
3.10
3.30
3.50
3.70
3.90
4.10
2000 2009 2010 2012 2014
City Household Size
2000 - 2014
La Habra Heights
Montclair
Yorba Linda
California
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
2000 2009 2010 2012 2014
City Household Size Trend
(%) 2000 - 2014
La Habra Heights
Montclair
Yorba Linda
California
• The City Household Size trend shows a different story from the county trend
• Montclair and La Habra Heights are decreasing
• California and Yorba Linda have an upward trend
County Median Household Income Trend
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
2000 2009 2010 2012 2014
County Median Household Income Trend
(%) 2000 - 2014
Los Angeles
San Bernardino
Orange
California
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
2000 2009 2010 2012 2014
County Median Household Income
($) 2000 - 2014
Los Angeles
San Bernardino
Orange
California
• Over all, the County Median Household Income movements keep constant during the 4 year period.
• Orange County Median Household Income is highest (~$78,000/year) compared with the others counties.
City Median Household Income Trend
Trulia.com
Usa.com
Excel Worksheet
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
2000 2009 2010 2012 2014 2015
City Median Household Income
($) 2000 - 2015
La Habra Heights
Montclair
Yorba Linda
California
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
2000 2009 2010 2012 2014
City Median Household Income Trend
(%) 2000 - 2015
La Habra Heights
Montclair
Yorba Linda
California
• City Median Household Income ($) slightly decreased over the past 15 years.
• However, the trend shows that Yorba Linda and California are the only ones holding constant.
19 Year City Median Housing Price Trend
Zillow.com
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
Housing Prices ($) 1996 - 2015
La Habra Heights
Montclair
Yorba Linda
California
-50.00%
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
300.00%
Housing Price Trend (%) 1996 - 2015
La Habra Heights
Montclair
Yorba Linda
California
• Housing Price is volatile, but has been increasing since 2012.
• Yorba Linda Housing Price is the 2nd highest after La Habra Heights
• Yorba Linda’s Housing Price Trend is slightly increasing while La Habra Heights has started to decrease.
5 Year City Median Housing Price Trend
Zillow.com
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
Housing Price Trend (%) 2010 - 2015
La Habra Heights
Montclair
Yorba Linda
California
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
Housing Prices ($) 2010 - 2015
La Habra Heights
Montclair
Yorba Linda
California
• Median Price of Yorba Linda about $600,000 to $800,000 but slightly increasing compares with housing
price of La Habra Heights is lower but in the future its housing price will drop.
Unemployment Ratehttp://www.city-data.com/county/Los_Angeles_County-CA.html
http://www.city-data.com/city/San-Bernardino-California.html
http://www.city-data.com/county/Orange_County-CA.html
http://data.bls.gov/pdq/SurveyOutputServlet
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
COUNTY Unemployment
(%) 2000 - 2015
Los Angeles
San Bernardino
Orange
California
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
CITY Unemployment
(%) 2000 - 2015
La Habra Heights
Montclair
Yorba Linda
California
• Los Angeles and San Bernardino county have unemployment rates at about 6% (= California)
• However, Orange County has the lowest unemployment rate at about 4%
• Yorba Linda also has an unemployment rate of under 4%
La Habra Heights Crimehttp://www.city-data.com/city/La-Habra-Heights-California.html
0
20
40
60
80
100
120
140
La Habra Heights Total Crimes
(# of incidents) 2002 - 2014
Violent
Property
-100.0%
-50.0%
0.0%
50.0%
100.0%
150.0%
200.0%
La Habra Heights Crime Trend
(%) 2002 - 2014
Violent
Property
• Property violence is the major crime of the city.
• However, based on the data, the trend of violent crime will increase and property crime will drop off.
Montclair Crimehttp://www.city-data.com/city/Montclair-California.html
0
500
1000
1500
2000
2500
3000
Montclair Total Crimes
(# of incidents) 2002 - 2014
Violent
Property
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
Montclair Crime Trend
(%) 2002 - 2014
Violent
Property
• There were about 1500 property crimes and 210 violent crime in 2014.
• The city violent crime trend is increasing and the property crime trend is declining.
Yorba Linda Crimehttp://www.city-data.com/city/YorbaLinda-California.html
0
200
400
600
800
1000
1200
Yorba Linda Total Crimes
(# of incidents) 2002 - 2014
Violent
Property
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Yorba Linda Crime Trend
(%) 2002 - 2014
Violent
Property
• In 2014, there were 749 total crimes in Yorba Linda
• Property crime was about 28% lower than in 2002 and violent crime was only 5% higher than in 2002
City Crime Comparison
0
500
1000
1500
2000
2500
3000
Total Crime
(# of incidents) 2002 - 2014
La Habra Heights
Violent
La Habra Heights
Property
Montclair Violent
Montclair Property
Yorba Linda Violent
Yorba Linda Property
-100.0%
-50.0%
0.0%
50.0%
100.0%
150.0%
200.0%
Crime Trend
(%) 2002 - 2014
La Habra Heights Violent
La Habra Heights
Property
Montclair Violent
Montclair Property
Yorba Linda Violent
Yorba Linda Property
• Montclair has the highest property crime (about 1500 crimes in 2014).
• La Habra Heights property crime is trending upward while other cities are slightly decreasing
La Habra Heights Demographics
Male
Female
Total
0.00
50000.00
100000.00
La Habra Heights Population By Race and Gender 2015
Male
Female
Total
https://suburbanstats.org/population/california/how-many-people-live-in-la-
habra
Male
Total
Female
0.00
20000.00
40000.00
60000.00
80000.00
Montclair Population By Race and Gender
2015
Male
Female
Total
Male
Female
Total
https://suburbanstats.org/population/california/how-many-people-live-in-
montclair
Montclair Demographics
Male
Female
Total
0.00
20000.00
40000.00
60000.00
80000.00
Total
Population
white
Hispanic
Other Race
Asian
American
Indian Three or
more Races African
American
Yorba Linda Population by Gender and Race 2015
Male Female Total
https://suburbanstats.org/population/california/how-many-people-live-in-
yorba-linda
Yorba Linda Demographics
Yorba Linda Population Demographics
Age
Gender Marital Status
➢ Est. Population:
➢67,973
➢ Population Growth
(since 2000):
➢15.7%
GROWING!!
Source: CMA Report
Yorba Linda Racial Make-up
➢ White: 75.2%
➢ Black: 1.04%
➢ Hispanic: 16.96%
➢ Asian:
17%
➢ Native: 0.36%
➢ One Race, Other: 1.53%
➢ Two or More Races: 4.83%
➢ The city is mostly White people with
an equal mix of Hispanic and Asian
people in 2nd
Source: http://www.usa.com/yorba-linda-ca-population-and-races.htm
La Habra Heights City School System
Placentia-Yorba Linda Unified School District
• One of the most prestigious school systems in the state
• There are 16 schools in this city
• Assigned schools for 17281 Meadowview Dr. ALL ranked 9/10:
• Elementary School: Rose Drive
• Middle School: Yorba Linda
• High School: El Dorado
Source: http://www.trulia.com/real_estate/Yorba_Linda-California/
Scores out of 10
(10 = highest ranking)
La Habra Heights City School Rankings
Source:
Yorba Linda City School System
Placentia-Yorba Linda Unified School District
• One of the most prestigious school systems in the state
• There are 16 schools in this city
• Assigned schools for 17281 Meadowview Dr. ALL ranked 9/10:
• Elementary School: Rose Drive
• Middle School: Yorba Linda
• High School: El Dorado
Source: http://www.trulia.com/real_estate/Yorba_Linda-California/
Scores out of 10
(10 = highest ranking)
El Dorado High School
Source: http://www.zillow.com/yorba-linda-ca/schools/el-dorado-high-school-24822/
Neighborhood School Map
Source: http://www.trulia.com/property/3234839780-17281-Meadowview-Dr-Yorba-Linda-CA-92886#nearby/schools
PARK
PARK
Richard M. Nixon
Presidential Library
Main Street
Yorba Linda
Middle School
El Dorado
High School
Rose Drive
Elementary School
Yorba Linda City Convenience
➢ 43 min from Downtown LA
➢ 17 min from Downtown Fullerton
➢ 30 min from Huntington Beach
➢ 22 min from John Wayne Airport
➢ 4 Major Highways: 90, 91, 57, 55
➢ Median Travel Time to Work : 31.4 min
➢ 98% commute by Car
➢ 1% by Public Transportation
https://en.wikipedia.org/wiki/California_State_Route_90#/media/File:California_90.svg
https://en.wikipedia.org/wiki/California_State_Route_57#/media/File:California_57.svg
https://en.wikipedia.org/wiki/California_State_Route_55#/media/File:California_55.svg
https://en.wikipedia.org/wiki/California_State_Route_91#/media/File:California_91.svg
https://www.google.com/maps/
John Wayne
Airport
http://www.trulia.com/real_estate/Yorba_Linda-California/
Regional
Sources:
Yorba Linda City Statistics
➢The median sale price as of May 18 2016 :
➢$750,000 ↑
➢Price Per Square feet :
➢$355↑
➢Median Rent :
➢$3,150 ↑
Source: http://www.trulia.com/real_estate/Yorba_Linda-California/
• The most basic factors affect investment decisions because buyers
follow money for resident or investment.
Yorba Linda La Habra Heights Montclair
Household Size Increasing Decline Decline
Household Income Highest Between Lowest
Housing Price Slightly Increasing Decreasing Constant
Unemployment Rate Lowest High Highest
Population Increasing Constant Slightly Increasing
Which city is the best for investment?
The Property
17821 Meadowview Dr. Yorba Linda, CA
 Security System
 Sprinkler System
 Vaulted Ceiling
 Wired
 SOLAR PANELS
ENERGY
SAVINGS!!!
Facts:
 Original List price: $675,000
 Price per Sqft: $333
 County: Orange County
 Type: Single-Family Residence
 Bedrooms: 6
 Bathrooms: 3
 Area: 2,026 Sqft
 Lot Size: 7,224 Sqft
 Year Built: 1964
Features:
 Barbecue
 Cable Ready
 Ceiling Fan
 Double Pane/Storm
Windows
 Fenced Yard
 Fireplace
 Garden
 Lawn
 Parking: Garage - Attached,
2 spaces, 483 sqft garage
 Patio
 RV Parking
17821 Meadowview Dr. Yorba Linda,
CA
Source: http://www.zillow.com/homedetails/17281-Meadowview-Dr-Yorba-Linda-CA-92886/25373722_zpid/
KitchenEntry
17821 Meadowview Dr. Yorba Linda,
CA
Source: http://www.zillow.com/homedetails/17281-Meadowview-Dr-Yorba-Linda-CA-92886/25373722_zpid/
2nd BathroomMaster Bathroom
17821 Meadowview Dr. Yorba Linda,
CA
Source: http://www.zillow.com/homedetails/17281-Meadowview-Dr-Yorba-Linda-CA-92886/25373722_zpid/
Other BedroomMaster Bedroom
17821 Meadowview Dr. Yorba Linda,
CA
Source: http://www.zillow.com/homedetails/17281-Meadowview-Dr-Yorba-Linda-CA-92886/25373722_zpid/
Neighborhood
Source: http://www.trulia.com/property/3234839780-17281-Meadowview-Dr-Yorba-Linda-CA-92886#nearby/amenities
PARK
PARK
Richard M. Nixon
Presidential Library
Main Street
Restaurants
Neighborhood Overview
 On the West side of Yorba Linda
 Residential/Single-Family Zone
 House price range: $604,500 - $811,000”
 92886 Median Sale Price: $750,000
 92886 Zip Code WILL RISE 3.3% NEXT YEAR
 2.9% increase for Yorba Linda as a whole
 Among 92886 homes, this home is 4% lower than the midpoint (median) home,
and is priced 11.4% lower per square foot.
Surrounding properties have lot sizes of approximately 7,250sqft.
Source: http://www.zillow.com/homedetails/17281-Meadowview-Dr-Yorba-Linda-CA-92886/25373722_zpid/
$675,000
SHOULD LIST HIGHER!!!
$702,000
POTENTIAL!!!
Neighborhood Overview
Eating/Drinking:
Ambros Meat Co
Vons
Starbucks
Sprouts Farmers Market
Graziano's Italian Restaurant
Taco's San Pedro
7-Eleven
Lamppost Pizza
Kfc
R Manassero Farms
Distance (mi.)
• 0.14
• 0.26
• 0.37
• 0.37
• 0.42
• 0.42
• 0.42
• 0.43
• 0.44
• 0.46
Description
• Meat - Retail
• Grocers - Retail
• Coffee Shops
• Grocers - Retail
• Pizza
• Restaurants - Mexican
• Convenience Stores
• Pizza
• Restaurants - Chicken
• Fruits And Vegetables And Produce
- Retail
All
<10min
WALKING
DISTANCE
Source: CMA Report
Neighborhood Overview
Shopping:
• Md-7 US Inc
• Vons
• Vons Pharmacy
• Quaker Kitchens
• Grant Seeker Pro Inc
• Hands On Bicycle Inc
• Nallatech Inc
• Arrow Hardware
• Big Lots
• Sherwin-Williams
Distance (mi.)
• 0.15
• 0.26
• 0.26
• 0.3
• 0.37
• 0.42
• 0.47
• 0.48
• 0.53
• 0.56
Description
• Cosmetics And Perfumes - Retail
• Liquors - Retail
• Pharmacies
• Cabinets
• Computer Software
• Bicycles - Dealers
• Computer Software
• Hardware - Retail
• Variety Stores
• Paint - Retail
All
<10min
WALKING
DISTANCE
Source: CMA Report
Comparable Property Map
Subject:
17281 Meadowview Dr., Yorba Linda 92886-3215, Orange County
Source: CMA Report
Comparable Market Analysis
Search Criteria
Number of Comparables: 11 Search Period:
06/28/2015 -
05/28/2016
Sort Method: Distance From Subject (Closest)
Living/Building
Area: 1,722 - 2,330 Sq Ft
Pool: No Preference Land Use: Same As Subject
Distance from Subject: .5 miles
Summary Statistics
Subject Property High Low Median Average
Sale Price $1,138,500 $550,000 $670,000 $696,545
Building Sq Ft 2,026 3,191 1,763 1,889 2,045
Price Per Sq Ft $409.75 $276.44 $356.78 $341.39
Lot Sq Ft 7,242 18,302 7,205 8,800 9,870.4545
Bedrooms 6 5 3 4 4
Total Baths 3 4 2 2 2
Stories 1 2 1 1 1
Year Built 1964 1981 1961 1963 1967
Distance (miles) 0.48 0.07 0.37 0.32
Value Projected by Sq Ft $691,660
RealAVM™(1) $620,998 $1,242,238 $594,187 $666,767 $715,484
Source: CMA Report
Financing Options
Kitchen
Sink/Tile/Granite/Plumbing $ 8,000
Cabinets $ 7,000
Electrical $ 800
Appliances $ 3,500
Total $ 19,300
Master Bedroom
Closet $ 2,000
Electrical $ 1,000
Total $ 3,000
Master Bathroom
Sink/Shower/Tub/Tile/Plumbing $ 8,000
Electrical $ 800
Flooring $ 2,500
Total $ 11,300
2nd Bathroom
Sink/Shower/Tub/Tile/Plumbing $ 4,000
Electrical $ 800
Flooring $ 2,000
Total $ 6,800
Entrance/Living Room
Half Wall Removal $ 800
Enlarge Opening $ 1,000
(Between Living Room and Kitchen)
Chimney with Stone $ 2,500
Total $ 4,300
Family Room
Wall Removal $ 1,200
(Between Family Room and Adjacent
BR)
Total $ 1,200
Flooring
Whole House $ 10,000
Total $ 10,000
TOTAL COST $55,900
Purchase Price $ 647,468
Total Investment $ 703,368
Remodeling Costs
Discounted Cash Flow Model
• Able to save on buying costs through commissions and relationships with attorneys.
Financing
• Have fantastic standing with creditors which allows our company to obtain a 95% LTV ratio.
• Plan to pay off mortgage through rent payments and eventual sale of the property.
Operating Income and Variables
• Through research of recent trends and comparables of the property, we believe that a monthly rent of
$3,800 is attainable.
• Vacancy rates remain low within the area and housing prices have appreciated well above inflation.
Operating Expenses
• Property tax is based on 1.25% of the purchase price assuming we can obtain it for $647,468.
• CapEx assumes a 6% expense of the rental income for things such as roof repairs and driveway guts.
• Other expenses are formulated through recent comparables.
Operating Expense Growth Rates
• Property tax assumes a cap of 2% each year.
• Other growth rates are based off of the Federal Reserves target inflation rate.
Operating Expense Summary
• A product of the previous operating expense growth rates
Before Tax Cash Flow
Ratio Analysis
Rental Operating Tax
After Tax Cash Flow and Resale
• Our investment team believes this project will be possible only if you plan on holding and reselling
Amortization Table
Resale Assumptions
(Initial Equity)
MAX (CEILING) PRICE TO PAY
FOR THIS PROPERTY:
$647,468
Ceiling Price
Lets Invest
TOGETHER!

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493 Presentation

  • 1. 6/2/2016 Spring 2016 By, Keith Arky Hannah Nguyen Tyler Norgord Cynthia Jaramillo
  • 2. We Are: Committed to offering a variety of programs and services in order to successfully cater to each and every client Growing exceptionally fast as one of the newest real estate investment firms in the Greater Los Angeles Area A recent Fortune 500 company entrant Focused on producing win-win outcomes for all parties involved in order for continued future success 2424 Beverly Blvd. Suite 111 Monterey Park, CA 91755 Office: (626) 371-4890 Fax: (626) 371-4896 9am-6pm Monday-Sunday Open 365 daysEmpireInvestments.com
  • 3. Bio Sketch QUALIFICATIONS: • Real Estate Broker License • Bachelor’s Degree in Architecture • Southern California Institute of Architecture 2007 • Bachelor’s Degree in Business Administration & Real Estate • California State University, Los Angeles 2011 • Over 5 years of hands-on experience • Able to communicate using both the languages of architecture and business • Well-rounded approach sets him apart from other business/design-minded individuals As of today, Keith serves as a major asset in our company within the field of real estate development, asset management and architectural design consultation. K E I T H A R K Y PARTNER Phone: (805) 794-5555 Email: Keitharky@Empire.com
  • 4. Bio Sketch QUALIFICATIONS: • Bachelor’s Degree in Business Administration & Finance • Minor in Real Estate • California State University, Los Angeles 2011 • Over 4 years experience as a Financial Advisor and Real Estate Investment. • CFO of Associated Students Incorporated Hannah serves as a major asset in our company within the field of financial advisory and investment consultation. H A N N A H N G U Y E N PARTNER Phone: (626) 588-5555 Email: Hannahnguyen@Empire.com
  • 5. Bio Sketch QUALIFICATIONS: • Bachelors of Science in Finance & Real Estate • California State University, Los Angeles 2011 • Real Estate License • Over 5 years of hands-on experience • Able to communicate using both the languages of finance and real estate • Currently working towards completion of the CFA in order to improve all aspects of our company Tyler utilizes his leading expertise and ability to improve the functionality of the company and to expand on our ability to communicate with our clients T Y L E R N O R G O R D PARTNER Phone: (626) 716-5555 Email: Tylernorgord@Empire.com
  • 6. Bio Sketch QUALIFICATIONS: • Bachelor’s Degree in Business Administration & Finance • Minor in Real Estate • California State University, Los Angeles 2010 • Over 5 years experience with the company • Currently resides in La Habra Heights, CA with her dog, Caramel As of today, Cynthia serves as a major asset in our company within the field of finance and real estate consultation. C Y N T H I A J A R A M I L L O PARTNER Phone: (626) 588-5555 Email: CynthiaJaramillo@Empire.com
  • 7. Why ? We specialize in single-family residential homes We have many offices throughout the Greater Los Angeles area • Allows for geographic location specialization We provide excellent quality service We find the most qualified properties Most importantly… We work for YOU!
  • 8. Los Angeles County Overview • THE MOST POPULOUS COUNTY IN THE UNITED STATES • 25% of California Population • Popular Destinations: • Museums: • Museum of Contemporary Art • The J. Paul Getty Center • Entertainment: • Dodger Stadium • STAPLES Center • Music Venues: • The Wiltern • Hollywood Bowl Key Statistics Source: http://www.sports-logos- screensavers.com/LosAngelesDodgers.html Source: https://en.wikipedia.org/wiki/Los_Angeles_County,_California
  • 9. Source: https://en.wikipedia.org/wiki/San_Bernardino_County,_California • The Largest county in the contiguous U.S • 20,000+ square miles • 24 cities • Population: 2,076,275 Key Statistics Source: http://www.tngrealestate.com/san-bernardino-county/
  • 10. Orange County Overview • 3rd most densely populated county in California, and 6th in the State • County’s 4 major Cities : • Anaheim • Santa Ana • Irvine • Huntington Beach • Popular Destination: • Disneyland • Knott's Berry Farm • Angels Stadium • Multiple beaches along its 40 mile coastline Key Statistics Source: https://en.wikipedia.org/wiki/Orange_County,_California#/ media/File:Seal_of_Orange_County,_California.svg Source: https://en.wikipedia.org/wiki/Orange_County,_California`` Source: https://en.wikipedia.org/wiki/Orange_County,_California``
  • 11. La Habra Heights City Overview ➢In Los Angeles County and founded in 1978 ➢Located just 25 miles southeast of downtown Los Angeles. ➢Far distance from highway Systems. ➢Connected with Highway 5, 605, 60 and 57 by other city neighborhoods. Regional Map Local Map Source: https://en.wikipedia.org/wiki/California_State_Route_57 https://en.wikipedia.org/wiki/California_State_Route_60 https://en.wikipedia.org/wiki/Interstate_605 https://en.wikipedia.org/wiki/Interstate_5 https://www.google.com/maps/place/La+Habra+Heights,+CA/@33.9343966,-117.9370111,11.21z/data=!4m5!3m4!1s0x80c2d511136a13c7:0x70351d4f4153f00!8m2!3d33.9608461!4d-117.9506186!6m1!1e1 ↓ ↓ ↓
  • 12. Montclair City Overview Source: http://www.zillow.com/san-bernardino-ca/home-values/ Southwestern San Bernardino
  • 13. Yorba Linda City Overview ➢ Yorba Linda = “Beautiful Yorba” ➢ Early residents (1910-1920) came to Yorba Linda with the intent of operating small farms ➢ Constructed numerous ranch houses, and planted citrus groves: hard-working citizens ➢ Pacific Electric Railroad line between Yorba Linda and Los Angeles was an important transportation link ➢ Yorba Linda growers could now easily get their produce to a major produce market ➢ 1960's that Yorba Linda began experiencing the tremendous population growth which the rest of Orange County had been experiencing for the previous two decades Source: http://ci.yorba-linda.ca.us/index.php/information/city-facts?id=127:history-of-yorba-linda&catid=1 Source: https://en.wikipedia.org/wiki/Yorba_ Linda,_California
  • 14. • Comparing the county population trend with the California’s can show population growth over the period. • San Bernardino is the county that represents the most significant increase of population from 1990 to 2015 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% County Population Trend (%) 1990 - 2015 Los Angeles San Bernardino Orange California County Population Trend http://www.city-data.com
  • 15. 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% City Population Trend (%) 2000 - 2015 La Habra Heights Montclair Yorba Linda California City Population Trend http://www.citypopulation.de/php/usa-census-admin.php?adm1id=CA • Yorba Linda has the most increased population and is the most in line with the increase of California • This is reflective of the economic growth of Orange County
  • 16. County Household Size Trend http://www.citypopulation.de/php/usa-census-admin.php?adm1id=CA -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 2000 2009 2010 2012 2014 County Household Size (%) 2000 - 2014 Los Angeles San Bernardino Orange California • These trends show that the Household Size of these three counties have been increasing since 2000 2.80 2.90 3.00 3.10 3.20 3.30 3.40 2000 2009 2010 2012 2014 County Household Size 2000 - 2014 Los Angeles San Bernardino Orange California
  • 17. City Household Size Trend http://www.citypopulation.de/php/usa-census-admin.php?adm1id=CA 2.70 2.90 3.10 3.30 3.50 3.70 3.90 4.10 2000 2009 2010 2012 2014 City Household Size 2000 - 2014 La Habra Heights Montclair Yorba Linda California -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 2000 2009 2010 2012 2014 City Household Size Trend (%) 2000 - 2014 La Habra Heights Montclair Yorba Linda California • The City Household Size trend shows a different story from the county trend • Montclair and La Habra Heights are decreasing • California and Yorba Linda have an upward trend
  • 18. County Median Household Income Trend 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 2000 2009 2010 2012 2014 County Median Household Income Trend (%) 2000 - 2014 Los Angeles San Bernardino Orange California $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 2000 2009 2010 2012 2014 County Median Household Income ($) 2000 - 2014 Los Angeles San Bernardino Orange California • Over all, the County Median Household Income movements keep constant during the 4 year period. • Orange County Median Household Income is highest (~$78,000/year) compared with the others counties.
  • 19. City Median Household Income Trend Trulia.com Usa.com Excel Worksheet $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 2000 2009 2010 2012 2014 2015 City Median Household Income ($) 2000 - 2015 La Habra Heights Montclair Yorba Linda California 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 2000 2009 2010 2012 2014 City Median Household Income Trend (%) 2000 - 2015 La Habra Heights Montclair Yorba Linda California • City Median Household Income ($) slightly decreased over the past 15 years. • However, the trend shows that Yorba Linda and California are the only ones holding constant.
  • 20. 19 Year City Median Housing Price Trend Zillow.com $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 Housing Prices ($) 1996 - 2015 La Habra Heights Montclair Yorba Linda California -50.00% 0.00% 50.00% 100.00% 150.00% 200.00% 250.00% 300.00% Housing Price Trend (%) 1996 - 2015 La Habra Heights Montclair Yorba Linda California • Housing Price is volatile, but has been increasing since 2012. • Yorba Linda Housing Price is the 2nd highest after La Habra Heights • Yorba Linda’s Housing Price Trend is slightly increasing while La Habra Heights has started to decrease.
  • 21. 5 Year City Median Housing Price Trend Zillow.com 0.00% 50.00% 100.00% 150.00% 200.00% 250.00% Housing Price Trend (%) 2010 - 2015 La Habra Heights Montclair Yorba Linda California $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 Housing Prices ($) 2010 - 2015 La Habra Heights Montclair Yorba Linda California • Median Price of Yorba Linda about $600,000 to $800,000 but slightly increasing compares with housing price of La Habra Heights is lower but in the future its housing price will drop.
  • 22. Unemployment Ratehttp://www.city-data.com/county/Los_Angeles_County-CA.html http://www.city-data.com/city/San-Bernardino-California.html http://www.city-data.com/county/Orange_County-CA.html http://data.bls.gov/pdq/SurveyOutputServlet 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% COUNTY Unemployment (%) 2000 - 2015 Los Angeles San Bernardino Orange California 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% CITY Unemployment (%) 2000 - 2015 La Habra Heights Montclair Yorba Linda California • Los Angeles and San Bernardino county have unemployment rates at about 6% (= California) • However, Orange County has the lowest unemployment rate at about 4% • Yorba Linda also has an unemployment rate of under 4%
  • 23. La Habra Heights Crimehttp://www.city-data.com/city/La-Habra-Heights-California.html 0 20 40 60 80 100 120 140 La Habra Heights Total Crimes (# of incidents) 2002 - 2014 Violent Property -100.0% -50.0% 0.0% 50.0% 100.0% 150.0% 200.0% La Habra Heights Crime Trend (%) 2002 - 2014 Violent Property • Property violence is the major crime of the city. • However, based on the data, the trend of violent crime will increase and property crime will drop off.
  • 24. Montclair Crimehttp://www.city-data.com/city/Montclair-California.html 0 500 1000 1500 2000 2500 3000 Montclair Total Crimes (# of incidents) 2002 - 2014 Violent Property -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Montclair Crime Trend (%) 2002 - 2014 Violent Property • There were about 1500 property crimes and 210 violent crime in 2014. • The city violent crime trend is increasing and the property crime trend is declining.
  • 25. Yorba Linda Crimehttp://www.city-data.com/city/YorbaLinda-California.html 0 200 400 600 800 1000 1200 Yorba Linda Total Crimes (# of incidents) 2002 - 2014 Violent Property -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% Yorba Linda Crime Trend (%) 2002 - 2014 Violent Property • In 2014, there were 749 total crimes in Yorba Linda • Property crime was about 28% lower than in 2002 and violent crime was only 5% higher than in 2002
  • 26. City Crime Comparison 0 500 1000 1500 2000 2500 3000 Total Crime (# of incidents) 2002 - 2014 La Habra Heights Violent La Habra Heights Property Montclair Violent Montclair Property Yorba Linda Violent Yorba Linda Property -100.0% -50.0% 0.0% 50.0% 100.0% 150.0% 200.0% Crime Trend (%) 2002 - 2014 La Habra Heights Violent La Habra Heights Property Montclair Violent Montclair Property Yorba Linda Violent Yorba Linda Property • Montclair has the highest property crime (about 1500 crimes in 2014). • La Habra Heights property crime is trending upward while other cities are slightly decreasing
  • 27. La Habra Heights Demographics Male Female Total 0.00 50000.00 100000.00 La Habra Heights Population By Race and Gender 2015 Male Female Total https://suburbanstats.org/population/california/how-many-people-live-in-la- habra
  • 28. Male Total Female 0.00 20000.00 40000.00 60000.00 80000.00 Montclair Population By Race and Gender 2015 Male Female Total Male Female Total https://suburbanstats.org/population/california/how-many-people-live-in- montclair Montclair Demographics
  • 29. Male Female Total 0.00 20000.00 40000.00 60000.00 80000.00 Total Population white Hispanic Other Race Asian American Indian Three or more Races African American Yorba Linda Population by Gender and Race 2015 Male Female Total https://suburbanstats.org/population/california/how-many-people-live-in- yorba-linda Yorba Linda Demographics
  • 30. Yorba Linda Population Demographics Age Gender Marital Status ➢ Est. Population: ➢67,973 ➢ Population Growth (since 2000): ➢15.7% GROWING!! Source: CMA Report
  • 31. Yorba Linda Racial Make-up ➢ White: 75.2% ➢ Black: 1.04% ➢ Hispanic: 16.96% ➢ Asian: 17% ➢ Native: 0.36% ➢ One Race, Other: 1.53% ➢ Two or More Races: 4.83% ➢ The city is mostly White people with an equal mix of Hispanic and Asian people in 2nd Source: http://www.usa.com/yorba-linda-ca-population-and-races.htm
  • 32. La Habra Heights City School System Placentia-Yorba Linda Unified School District • One of the most prestigious school systems in the state • There are 16 schools in this city • Assigned schools for 17281 Meadowview Dr. ALL ranked 9/10: • Elementary School: Rose Drive • Middle School: Yorba Linda • High School: El Dorado Source: http://www.trulia.com/real_estate/Yorba_Linda-California/ Scores out of 10 (10 = highest ranking)
  • 33. La Habra Heights City School Rankings Source:
  • 34. Yorba Linda City School System Placentia-Yorba Linda Unified School District • One of the most prestigious school systems in the state • There are 16 schools in this city • Assigned schools for 17281 Meadowview Dr. ALL ranked 9/10: • Elementary School: Rose Drive • Middle School: Yorba Linda • High School: El Dorado Source: http://www.trulia.com/real_estate/Yorba_Linda-California/ Scores out of 10 (10 = highest ranking)
  • 35. El Dorado High School Source: http://www.zillow.com/yorba-linda-ca/schools/el-dorado-high-school-24822/
  • 36. Neighborhood School Map Source: http://www.trulia.com/property/3234839780-17281-Meadowview-Dr-Yorba-Linda-CA-92886#nearby/schools PARK PARK Richard M. Nixon Presidential Library Main Street Yorba Linda Middle School El Dorado High School Rose Drive Elementary School
  • 37. Yorba Linda City Convenience ➢ 43 min from Downtown LA ➢ 17 min from Downtown Fullerton ➢ 30 min from Huntington Beach ➢ 22 min from John Wayne Airport ➢ 4 Major Highways: 90, 91, 57, 55 ➢ Median Travel Time to Work : 31.4 min ➢ 98% commute by Car ➢ 1% by Public Transportation https://en.wikipedia.org/wiki/California_State_Route_90#/media/File:California_90.svg https://en.wikipedia.org/wiki/California_State_Route_57#/media/File:California_57.svg https://en.wikipedia.org/wiki/California_State_Route_55#/media/File:California_55.svg https://en.wikipedia.org/wiki/California_State_Route_91#/media/File:California_91.svg https://www.google.com/maps/ John Wayne Airport http://www.trulia.com/real_estate/Yorba_Linda-California/ Regional Sources:
  • 38. Yorba Linda City Statistics ➢The median sale price as of May 18 2016 : ➢$750,000 ↑ ➢Price Per Square feet : ➢$355↑ ➢Median Rent : ➢$3,150 ↑ Source: http://www.trulia.com/real_estate/Yorba_Linda-California/
  • 39. • The most basic factors affect investment decisions because buyers follow money for resident or investment. Yorba Linda La Habra Heights Montclair Household Size Increasing Decline Decline Household Income Highest Between Lowest Housing Price Slightly Increasing Decreasing Constant Unemployment Rate Lowest High Highest Population Increasing Constant Slightly Increasing Which city is the best for investment?
  • 40. The Property 17821 Meadowview Dr. Yorba Linda, CA
  • 41.  Security System  Sprinkler System  Vaulted Ceiling  Wired  SOLAR PANELS ENERGY SAVINGS!!! Facts:  Original List price: $675,000  Price per Sqft: $333  County: Orange County  Type: Single-Family Residence  Bedrooms: 6  Bathrooms: 3  Area: 2,026 Sqft  Lot Size: 7,224 Sqft  Year Built: 1964 Features:  Barbecue  Cable Ready  Ceiling Fan  Double Pane/Storm Windows  Fenced Yard  Fireplace  Garden  Lawn  Parking: Garage - Attached, 2 spaces, 483 sqft garage  Patio  RV Parking 17821 Meadowview Dr. Yorba Linda, CA Source: http://www.zillow.com/homedetails/17281-Meadowview-Dr-Yorba-Linda-CA-92886/25373722_zpid/
  • 42. KitchenEntry 17821 Meadowview Dr. Yorba Linda, CA Source: http://www.zillow.com/homedetails/17281-Meadowview-Dr-Yorba-Linda-CA-92886/25373722_zpid/
  • 43. 2nd BathroomMaster Bathroom 17821 Meadowview Dr. Yorba Linda, CA Source: http://www.zillow.com/homedetails/17281-Meadowview-Dr-Yorba-Linda-CA-92886/25373722_zpid/
  • 44. Other BedroomMaster Bedroom 17821 Meadowview Dr. Yorba Linda, CA Source: http://www.zillow.com/homedetails/17281-Meadowview-Dr-Yorba-Linda-CA-92886/25373722_zpid/
  • 46. Neighborhood Overview  On the West side of Yorba Linda  Residential/Single-Family Zone  House price range: $604,500 - $811,000”  92886 Median Sale Price: $750,000  92886 Zip Code WILL RISE 3.3% NEXT YEAR  2.9% increase for Yorba Linda as a whole  Among 92886 homes, this home is 4% lower than the midpoint (median) home, and is priced 11.4% lower per square foot. Surrounding properties have lot sizes of approximately 7,250sqft. Source: http://www.zillow.com/homedetails/17281-Meadowview-Dr-Yorba-Linda-CA-92886/25373722_zpid/ $675,000 SHOULD LIST HIGHER!!! $702,000 POTENTIAL!!!
  • 47. Neighborhood Overview Eating/Drinking: Ambros Meat Co Vons Starbucks Sprouts Farmers Market Graziano's Italian Restaurant Taco's San Pedro 7-Eleven Lamppost Pizza Kfc R Manassero Farms Distance (mi.) • 0.14 • 0.26 • 0.37 • 0.37 • 0.42 • 0.42 • 0.42 • 0.43 • 0.44 • 0.46 Description • Meat - Retail • Grocers - Retail • Coffee Shops • Grocers - Retail • Pizza • Restaurants - Mexican • Convenience Stores • Pizza • Restaurants - Chicken • Fruits And Vegetables And Produce - Retail All <10min WALKING DISTANCE Source: CMA Report
  • 48. Neighborhood Overview Shopping: • Md-7 US Inc • Vons • Vons Pharmacy • Quaker Kitchens • Grant Seeker Pro Inc • Hands On Bicycle Inc • Nallatech Inc • Arrow Hardware • Big Lots • Sherwin-Williams Distance (mi.) • 0.15 • 0.26 • 0.26 • 0.3 • 0.37 • 0.42 • 0.47 • 0.48 • 0.53 • 0.56 Description • Cosmetics And Perfumes - Retail • Liquors - Retail • Pharmacies • Cabinets • Computer Software • Bicycles - Dealers • Computer Software • Hardware - Retail • Variety Stores • Paint - Retail All <10min WALKING DISTANCE Source: CMA Report
  • 49. Comparable Property Map Subject: 17281 Meadowview Dr., Yorba Linda 92886-3215, Orange County Source: CMA Report
  • 50. Comparable Market Analysis Search Criteria Number of Comparables: 11 Search Period: 06/28/2015 - 05/28/2016 Sort Method: Distance From Subject (Closest) Living/Building Area: 1,722 - 2,330 Sq Ft Pool: No Preference Land Use: Same As Subject Distance from Subject: .5 miles Summary Statistics Subject Property High Low Median Average Sale Price $1,138,500 $550,000 $670,000 $696,545 Building Sq Ft 2,026 3,191 1,763 1,889 2,045 Price Per Sq Ft $409.75 $276.44 $356.78 $341.39 Lot Sq Ft 7,242 18,302 7,205 8,800 9,870.4545 Bedrooms 6 5 3 4 4 Total Baths 3 4 2 2 2 Stories 1 2 1 1 1 Year Built 1964 1981 1961 1963 1967 Distance (miles) 0.48 0.07 0.37 0.32 Value Projected by Sq Ft $691,660 RealAVM™(1) $620,998 $1,242,238 $594,187 $666,767 $715,484 Source: CMA Report
  • 52. Kitchen Sink/Tile/Granite/Plumbing $ 8,000 Cabinets $ 7,000 Electrical $ 800 Appliances $ 3,500 Total $ 19,300 Master Bedroom Closet $ 2,000 Electrical $ 1,000 Total $ 3,000 Master Bathroom Sink/Shower/Tub/Tile/Plumbing $ 8,000 Electrical $ 800 Flooring $ 2,500 Total $ 11,300 2nd Bathroom Sink/Shower/Tub/Tile/Plumbing $ 4,000 Electrical $ 800 Flooring $ 2,000 Total $ 6,800 Entrance/Living Room Half Wall Removal $ 800 Enlarge Opening $ 1,000 (Between Living Room and Kitchen) Chimney with Stone $ 2,500 Total $ 4,300 Family Room Wall Removal $ 1,200 (Between Family Room and Adjacent BR) Total $ 1,200 Flooring Whole House $ 10,000 Total $ 10,000 TOTAL COST $55,900 Purchase Price $ 647,468 Total Investment $ 703,368 Remodeling Costs
  • 53. Discounted Cash Flow Model • Able to save on buying costs through commissions and relationships with attorneys.
  • 54. Financing • Have fantastic standing with creditors which allows our company to obtain a 95% LTV ratio. • Plan to pay off mortgage through rent payments and eventual sale of the property.
  • 55. Operating Income and Variables • Through research of recent trends and comparables of the property, we believe that a monthly rent of $3,800 is attainable. • Vacancy rates remain low within the area and housing prices have appreciated well above inflation.
  • 56. Operating Expenses • Property tax is based on 1.25% of the purchase price assuming we can obtain it for $647,468. • CapEx assumes a 6% expense of the rental income for things such as roof repairs and driveway guts. • Other expenses are formulated through recent comparables.
  • 57. Operating Expense Growth Rates • Property tax assumes a cap of 2% each year. • Other growth rates are based off of the Federal Reserves target inflation rate.
  • 58. Operating Expense Summary • A product of the previous operating expense growth rates
  • 62. After Tax Cash Flow and Resale • Our investment team believes this project will be possible only if you plan on holding and reselling
  • 65. (Initial Equity) MAX (CEILING) PRICE TO PAY FOR THIS PROPERTY: $647,468 Ceiling Price