Sheet1Your Name:Unit Mix SummaryUnitsTypeApprox. SFAvg. ContactTotal MonthlyMarket RentsTotal Monthly Market Rents71 bd/1 ba600$1,462$1,50032 bd/1 ba800$1,785$1,850Totals10AcquisitionOperationsFinancingDispositionGross Income Multiplier14.50Rental Increase3%Interest Rate3.625%Exit Cap Rate4.75%Prop. Tax Rate1.15%Vacancy2%Term30Costs of Sale1%Prop Tax Incr.2%Property Mgmt5%Debt Cov. Ratio1.25Broker Comm.5%Acquisition Costs$10,000Laundry Inc.$15Points1.00Discount Rate14%Op. Exp. Incr.2.50%Year0123456Rental IncomeLaundryGROSS SCHEDULED INCOMETurnover VacancyGROSS OPERATING INCOMEExpensesProperty Management FeeBuilding Insurance$ 2,195.00Grounds Maintenance$ 1,560.00Maintenance$ 2,500.00Pest Control$ 600.00Reserves$ 1,700.00Taxes - Real EstateTrash Removal$ 1,000.00Utilities - Gas & Electric$ 2,500.00Utilities - Water & Sewer$ 5,000.00TOTAL OPERATING EXPENSESNET OPERATING INCOMEAnnual Debt ServiceCash Flows Before Taxes - OperationsPurchase PriceSale PriceLoan AmountCosts of SaleAcquisition CostsBroker Comm.Loan PointsLoan BalanceInitial Equity Net Sale ProceedsEquity Cash Flows Before TaxesIRRPV of Cash FlowsInitial InvestmentNet Present ValueCash on CashLoan to Value Ratio Homework 3 Finance 331 – Fall 2016 This assignment is due December 8, 2016 at 7pm. Review the attached listing information on 4474 Winona Avenue, San Diego, CA 92115. Your assignment is to reconstruction the proforma for this property to evaluate it with alternative investment assumptions. You are to complete an Excel Spreadsheet to measure the potential investment performance of this property. Your score will be reduced by 2 points out of 10 if you do not use Excel formulas to make calculations. Rents: Our review of market conditions indicate that market rents for the one-bedroom units is $1,500 per month and two-bedroom units will rent for $1,850 per month. We expect market rents to increase by 3% per year. Use market rents to determine rental income for year 1. Other income: There is an on-site laundry that will produce $15/unit per month. Vacancy and credit losses will be 2% per year. Property taxes will be 1.15% of the purchase price for the first year and increase by 2% per year. Property Management will cost 5% of Gross Operating Income. We agree with the broker’s estimates for the other operating costs. However, we believe they will increase by 2.5% per year. Our offer will be determined by a Gross Income Multiplier of 14.5 of Gross Scheduled Income. Acquisition costs will be $10,000 plus 1 point on the loan. Financing: Interest rate of 3.625% amortized over 30 years. The rate will be fixed for 5 years. Debt Coverage Ratio of 1.25 will be used to determine the loan amount. Disposition: We plan to hold the property for 5 years. At the end of year 5, the sale price is estimated using an “Exit Cap Rate” of 4.5% based on the NOI for year 6. We will pay a brokerage commission of 5% of the sale price plus other closin.

1. Sheet1Your Name:Unit Mix SummaryUnitsTypeApprox. SFAvg.
ContactTotal MonthlyMarket RentsTotal Monthly Market
Rents71 bd/1 ba600$1,462$1,50032 bd/1
ba800$1,785$1,850Totals10AcquisitionOperationsFinancingDis
positionGross Income Multiplier14.50Rental Increase3%Interest
Rate3.625%Exit Cap Rate4.75%Prop. Tax
Rate1.15%Vacancy2%Term30Costs of Sale1%Prop Tax
Incr.2%Property Mgmt5%Debt Cov. Ratio1.25Broker
Comm.5%Acquisition Costs$10,000Laundry
Inc.$15Points1.00Discount Rate14%Op. Exp.
Incr.2.50%Year0123456Rental IncomeLaundryGROSS
SCHEDULED INCOMETurnover VacancyGROSS OPERATING
INCOMEExpensesProperty Management FeeBuilding
Insurance$ 2,195.00Grounds Maintenance$
1,560.00Maintenance$ 2,500.00Pest Control$
600.00Reserves$ 1,700.00Taxes - Real EstateTrash Removal$
1,000.00Utilities - Gas & Electric$ 2,500.00Utilities - Water
& Sewer$ 5,000.00TOTAL OPERATING EXPENSESNET
OPERATING INCOMEAnnual Debt ServiceCash Flows Before
Taxes - OperationsPurchase PriceSale PriceLoan AmountCosts
of SaleAcquisition CostsBroker Comm.Loan PointsLoan
BalanceInitial Equity Net Sale ProceedsEquity Cash Flows
Before TaxesIRRPV of Cash FlowsInitial InvestmentNet Present
ValueCash on CashLoan to Value Ratio
Homework 3
Finance 331 – Fall 2016
This assignment is due December 8, 2016 at 7pm.
Review the attached listing information on 4474 Winona

2. Avenue, San Diego, CA 92115. Your assignment
is to reconstruction the proforma for this property to evaluate it
with alternative investment assumptions.
You are to complete an Excel Spreadsheet to measure the
potential investment performance of this
property. Your score will be reduced by 2 points out of 10 if
you do not use Excel formulas to make
calculations.
Rents: Our review of market conditions indicate that market
rents for the one-bedroom units is $1,500
per month and two-bedroom units will rent for $1,850 per
month. We expect market rents to increase
by 3% per year. Use market rents to determine rental income for
year 1.
Other income: There is an on-site laundry that will produce
$15/unit per month.
Vacancy and credit losses will be 2% per year.
Property taxes will be 1.15% of the purchase price for the first
year and increase by 2% per year.
Property Management will cost 5% of Gross Operating Income.
We agree with the broker’s estimates for the other operating
costs. However, we believe they will increase
by 2.5% per year.
Our offer will be determined by a Gross Income Multiplier of
14.5 of Gross Scheduled Income. Acquisition
costs will be $10,000 plus 1 point on the loan.
Financing: Interest rate of 3.625% amortized over 30 years. The
rate will be fixed for 5 years. Debt

3. Coverage Ratio of 1.25 will be used to determine the loan
amount.
Disposition: We plan to hold the property for 5 years. At the
end of year 5, the sale price is estimated
using an “Exit Cap Rate” of 4.5% based on the NOI for year 6.
We will pay a brokerage commission of 5%
of the sale price plus other closing costs of 1% of the sale price
end of year 5.
Based on these assumptions, is this a good deal?
Your tasks are to:
• Create an operating proforma for 6 years, with the sale at the
end of year 5.
• Calculate the offer price.
• Calculate the loan amount, annual debt service and loan
balance end of year 5.
• Calculate the Loan to Value Ratio.
• Calculate the cash flows before taxes to equity for each year.
• Calculate the initial equity investment.
• Calculate the cash on cash [equity dividend rate] for each
year.
• Calculate the IRR for a 5 year holding period.
• Calculate the NPV to the using a 14% discount rate.
Submit your spreadsheet solution online in Blackboard for
grading. Please name your spreadsheet file
“HW3 – Last Name, First Name”

4. 10 Units - Talmadge
4474 Winona Avenue, San Diego, CA 92115
Benn Vogelsang
Vice President
(619) 794-0381
[email protected]
01883437
3405 Kenyon St #411
San Diego, CA 92110
(619) 226-6011 (p)
(866) 861-7803 (f)
www.scc1031.com
Completely Redesigned and
Remodeled Interiors and
Exteriors; Low Maintenance
Operations
●
Strong Tenant Base and
Market Rents
●
Located at the Gates of
Talmadge; Mostly Residential

5. Neighborhood
●
Easy Access to Nearby 8
Freeway, El Cajon Blvd, and
SDSU
●
Table of Contents
Real Estate Investment Details
..................................................................................... 3
Property Description
...............................................................................................
..... 4
Property Photos
...............................................................................................
.............. 5
Talmadge................................................................................
........................................... 6
Regional Map
...............................................................................................
.................... 7
Location Map
...............................................................................................
.................... 8

6. Aerial
Map........................................................................................
................................. 9
Executive Summary
...............................................................................................
....... 10
Unit Mix Report
...............................................................................................
................ 11
Internal Rate of Return Analysis
.................................................................................. 12
Cash Flow Analysis
...............................................................................................
....... 13
Cash In Cash Out
...............................................................................................
............ 14
Loan Analysis
...............................................................................................
.................. 16
Investment Return Analysis
.......................................................................................... 17
Pro Forma Summary
...............................................................................................
..... 18
Demographics
...............................................................................................

7. .................. 19
Demographics
...............................................................................................
.................. 20
Real Estate Investment Details10 Units - Talmadge
4474 Winona Avenue
San Diego, CA 92115
Analysis
Analysis Date October 2016
Property
Property 10 Units - Talmadge
Property Address 4474 Winona Avenue
San Diego, CA 92115
Year Built 1972
Financial Information
Down Payment $950,000
Purchase Information
Property Type MultiFamily
Purchase Price $2,649,900
Fair Market Value $2,649,900

8. Units 10
Total Rentable Sq. Ft. 6,600
Resale Valuation 3% (annual appreciation)
Resale Expenses 4.5%
Loans
Type Debt Term Amortization Rate Payment
Fixed $1,699,900 30 years 30 years 3.25% $7,398
Income & Expenses
Gross Operating Income $182,656
Monthly GOI $15,221
Total Annual Expenses ($57,604)
Monthly Expenses ($4,800)
Contact Information
Benn Vogelsang
(619) 794-0381
[email protected]
01883437
The calculations and data presented are deemed to be accurate,
but not guaranteed. They are intended for the purpose of

9. illustrative projections
and analysis. The information provided is not intended to
replace or serve as substitute for any legal, accounting,
investment, real estate, tax or
other professional advice, consultation or service. The user of
this software should consult with a professional in the
respective legal, accounting,
tax or other professional area before making any decisions.
page 3 of 21
Property Description10 Units - Talmadge
4474 Winona Avenue
San Diego, CA 92115
Talmadge
The subject property consists of (7) large 1 Bed / 1
Bath units and (3) large 2 Bed / 1 Bath units. The
$400,000 +/- renovation was completed in October
2016. Renovations include: New Contemporary
Redwood Façade and Fencing, 3-toned Exterior
Paint, Dual Paned Windows and Sliding Doors,
Exterior Tile Landings, Concrete Walkway Coating,
New (Owned) Laundry Equipment, Drought Tolerant
Landscaping, Complete Roof Repair, Common Area
BBQ, Bike Rack, and New Exterior Lighting. New
Interior Improvements include: Kitchens (Stainless
Steel GE Appliances: Fridge, Gas Stove, Microwave,
Dishwasher), Kitchen Cabinets, Quartz Countertops,
SS Under-mount Sinks, Wood Laminate Floors,
Baseboards, Window Treatments, Custom Entry Doors,
Lighting, Bathrooms with Glass Shower Doors,
Slate Tiled Showers, Vanities, Faucets, Toilets, and Designer

10. Paint Throughout.
The property is located North of El Cajon Blvd in the desirable
Talmadge Neighborhood of San Diego with
walkability to eateries, bars, shops, services, and public
transportation access. The property is located close
proximity to SDSU, easy freeway access, 15 minute drive to the
beach.
page 4 of 21
Property Photos10 Units - Talmadge
4474 Winona Avenue
San Diego, CA 92115
Talmadge
page 5 of 21
10 Units - Talmadge
4474 Winona Avenue
San Diego, CA 92115
page 6 of 21

11. Regional Map10 Units - Talmadge
4474 Winona Avenue
San Diego, CA 92115
page 7 of 21
Location Map10 Units - Talmadge
4474 Winona Avenue
San Diego, CA 92115
page 8 of 21
Aerial Map10 Units - Talmadge
4474 Winona Avenue
San Diego, CA 92115
page 9 of 21
Executive Summary10 Units - Talmadge
4474 Winona Avenue
San Diego, CA 92115
ACQUISITION COSTS
Purchase Price, Points and Closing Costs $2,649,900
Investment - Cash $950,000
First Loan $1,699,900

12. INVESTMENT INFORMATION
Purchase Price $2,649,900
Price per Unit $264,990
Price per Sq. Ft. $401.50
Income per Unit $18,827
Expenses per Unit ($5,760)
INCOME, EXPENSES & CASH FLOW
Gross Scheduled Income $188,268
Total Vacancy and Credits ($5,612)
Operating Expenses ($57,604)
Net Operating Income $125,052
Debt Service ($88,777)
Cash Flow Before Taxes $36,275
FINANCIAL INDICATORS
Cash on Cash Return Before Taxes 3.82%
Debt Coverage Ratio 1.41
Capitalization Rate 4.72%
Gross Rent Multiplier 14.08

13. Gross Income / Square Feet $28.53
Gross Expenses / Square Feet ($8.73)
Operating Expense Ratio 31.54%
page 10 of 21
Unit Mix Report10 Units - Talmadge
4474 Winona Avenue
San Diego, CA 92115
UNIT MIXES
Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents
Monthly
7 1 bd / 1 ba 600 $1,462 $10,234 $1,475 $10,325
3 2 bd / 1 ba 800 $1,785 $5,355 $1,795 $5,385
10 6,600 $15,589 $15,710
UNIT MIX UNIT MIX SQUARE FEET
● 1 bd / 1 ba
● 2 bd / 1 ba
● 1 bd / 1 ba
● 2 bd / 1 ba
UNIT MIX INCOME UNIT MIX MARKET INCOME
● 1 bd / 1 ba

14. ● 2 bd / 1 ba
● 1 bd / 1 ba
● 2 bd / 1 ba
page 11 of 21
Internal Rate of Return Analysis10 Units - Talmadge
4474 Winona Avenue
San Diego, CA 92115
BEFORE TAX IRR
Time Future Cash Flows
Initial Investment ($950,000)
End of Year 1 $36,275
End of Year 2 $41,438
End of Year 3 $46,756
End of Year 4 $52,233
End of Year 5 $57,875
End of Year 6 $63,686
End of Year 7 $69,672
End of Year 8 $75,837

15. End of Year 9 $82,187
End of Year 10* $2,185,391
IRR = 12.58% * ($88,727 + $2,096,664)
AFTER TAX IRR
Time Future Cash Flows
Initial Investment ($950,000)
End of Year 1 $36,275
End of Year 2 $41,438
End of Year 3 $46,756
End of Year 4 $52,233
End of Year 5 $57,875
End of Year 6 $63,686
End of Year 7 $69,672
End of Year 8 $75,837
End of Year 9 $82,187
End of Year 10* $2,006,237
IRR = 11.79% * ($88,727 + $1,917,510)
page 12 of 21

16. Cash Flow Analysis10 Units - Talmadge
4474 Winona Avenue
San Diego, CA 92115
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Year 8 Year 9 Year 10
GROSS SCHEDULED INCOME $188,268 $193,880 $199,660
$205,614 $211,747 $218,063 $224,569 $231,270 $238,172
$245,281
Turnover Vacancy ($5,612) ($5,780) ($5,954) ($6,132)
($6,316) ($6,506) ($6,701) ($6,902) ($7,109) ($7,322)
Total Operating Expenses ($57,604) ($57,885) ($58,174)
($58,472) ($58,778) ($59,094) ($59,419) ($59,755) ($60,100)
($60,455)
NET OPERATING INCOME $125,052 $130,215 $135,533
$141,010 $146,652 $152,463 $158,448 $164,613 $170,963
$177,504
Loan Payment ($88,777) ($88,777) ($88,777) ($88,777)
($88,777) ($88,777) ($88,777) ($88,777) ($88,777) ($88,777)
NET CASH FLOW (b/t) $36,275 $41,438 $46,756 $52,233
$57,875 $63,686 $69,672 $75,837 $82,187 $88,727
Cash On Cash Return b/t 3.82% 4.36% 4.92% 5.50% 6.09%
6.70% 7.33% 7.98% 8.65% 9.34%
Footnotes: b/t = before taxes;a/t = after taxes
page 13 of 21

17. Cash In Cash Out10 Units - Talmadge
4474 Winona Avenue
San Diego, CA 92115
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Year 8 Year 9 Year 10
Rental Income $187,068 $192,680 $198,460 $204,414 $210,547
$216,863 $223,369 $230,070 $236,972 $244,081
Laundry $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
$1,200 $1,200 $1,200
GROSS SCHEDULED INCOME $188,268 $193,880 $199,660
$205,614 $211,747 $218,063 $224,569 $231,270 $238,172
$245,281
Turnover Vacancy ($5,612) ($5,780) ($5,954) ($6,132)
($6,316) ($6,506) ($6,701) ($6,902) ($7,109) ($7,322)
GROSS OPERATING INCOME $182,656 $188,100 $193,707
$199,482 $205,430 $211,557 $217,868 $224,368 $231,063
$237,959
Expenses
Property Management Fee ($9,413) ($9,694) ($9,983)
($10,281) ($10,587) ($10,903) ($11,228) ($11,564) ($11,909)
($12,264)
Building Insurance ($2,195) ($2,195) ($2,195) ($2,195)
($2,195) ($2,195) ($2,195) ($2,195) ($2,195) ($2,195)

18. Grounds Maintenance ($1,560) ($1,560) ($1,560) ($1,560)
($1,560) ($1,560) ($1,560) ($1,560) ($1,560) ($1,560)
Maintenance ($2,500) ($2,500) ($2,500) ($2,500) ($2,500)
($2,500) ($2,500) ($2,500) ($2,500) ($2,500)
Pest Control ($600) ($600) ($600) ($600) ($600) ($600) ($600)
($600) ($600) ($600)
Reserves ($1,700) ($1,700) ($1,700) ($1,700) ($1,700)
($1,700) ($1,700) ($1,700) ($1,700) ($1,700)
Taxes - Real Estate ($31,136) ($31,136) ($31,136) ($31,136)
($31,136) ($31,136) ($31,136) ($31,136) ($31,136) ($31,136)
Trash Removal ($1,000) ($1,000) ($1,000) ($1,000) ($1,000)
($1,000) ($1,000) ($1,000) ($1,000) ($1,000)
Utilities - Gas & Electric ($2,500) ($2,500) ($2,500) ($2,500)
($2,500) ($2,500) ($2,500) ($2,500) ($2,500) ($2,500)
Utilities - Water & Sewer ($5,000) ($5,000) ($5,000) ($5,000)
($5,000) ($5,000) ($5,000) ($5,000) ($5,000) ($5,000)
TOTAL OPERATING EXPENSES ($57,604) ($57,885)
($58,174) ($58,472) ($58,778) ($59,094) ($59,419) ($59,755)
($60,100) ($60,455)
NET OPERATING INCOME $125,052 $130,215 $135,533
$141,010 $146,652 $152,463 $158,448 $164,613 $170,963
$177,504
Footnotes: Cash Flow IRR based upon net cash flow and
principal payments
page 14 of 21

19. Cash In Cash Out10 Units - Talmadge
4474 Winona Avenue
San Diego, CA 92115
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Year 8 Year 9 Year 10
Debt Service
Loan Interest ($54,743) ($53,620) ($52,460) ($51,262)
($50,025) ($48,746) ($47,426) ($46,062) ($44,653) ($43,197)
Principal Payments ($34,034) ($35,157) ($36,317) ($37,515)
($38,752) ($40,031) ($41,351) ($42,715) ($44,124) ($45,580)
NET CASH FLOW (b/t) $36,275 $41,438 $46,756 $52,233
$57,875 $63,686 $69,672 $75,837 $82,187 $88,727
Cash Flow IRR N/A N/A N/A N/A N/A N/A N/A N/A N/A
1.02%
Projected Property Value $2,729,397 $2,811,279 $2,895,617
$2,982,486 $3,071,960 $3,164,119 $3,259,043 $3,356,814
$3,457,518 $3,561,244
Resale Expenses ($122,823) ($126,508) ($130,303) ($134,212)
($138,238) ($142,385) ($146,657) ($151,057) ($155,588)
($160,256)
Proceeds b/f Debt Payoff $2,606,574 $2,684,771 $2,765,314
$2,848,274 $2,933,722 $3,021,734 $3,112,386 $3,205,757
$3,301,930 $3,400,988

20. Loan Principal Balance ($1,665,866) ($1,630,709)
($1,594,392) ($1,556,878) ($1,518,126) ($1,478,095)
($1,436,744) ($1,394,029) ($1,349,904) ($1,304,324)
Net Proceeds From Sale $940,708 $1,054,062 $1,170,922
$1,291,396 $1,415,597 $1,543,639 $1,675,642 $1,811,729
$1,952,026 $2,096,664
Net Resale IRR 2.84% 9.31% 11.27% 12.08% 12.45% 12.62%
12.67% 12.67% 12.63% 12.58%
Footnotes: Cash Flow IRR based upon net cash flow and
principal payments
page 15 of 21
Loan Analysis10 Units - Talmadge
4474 Winona Avenue
San Diego, CA 92115
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Year 8 Year 9 Year 10
LOAN 1
Debt Service Analysis
Principal Payments $34,034 $35,157 $36,317 $37,515 $38,752
$40,031 $41,351 $42,715 $44,124 $45,580
Interest Payments $54,743 $53,620 $52,460 $51,262 $50,025
$48,746 $47,426 $46,062 $44,653 $43,197
Total Debt Service $88,777 $88,777 $88,777 $88,777 $88,777

21. $88,777 $88,777 $88,777 $88,777 $88,777
Principal Balance Analysis
Beginning Principal Balance $1,699,900 $1,665,866
$1,630,709 $1,594,392 $1,556,878 $1,518,126 $1,478,095
$1,436,744 $1,394,029 $1,349,904
Principal Reductions $34,034 $35,157 $36,317 $37,515
$38,752 $40,031 $41,351 $42,715 $44,124 $45,580
Ending Principal Balance $1,665,866 $1,630,709 $1,594,392
$1,556,878 $1,518,126 $1,478,095 $1,436,744 $1,394,029
$1,349,904 $1,304,324
page 16 of 21
Investment Return Analysis10 Units - Talmadge
4474 Winona Avenue
San Diego, CA 92115
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Year 8 Year 9 Year 10
Cash Flow - To Date $36,275 $77,712 $124,468 $176,701
$234,577 $298,263 $367,934 $443,771 $525,957 $614,684
Net Resale Proceeds $934,229 $1,018,685 $1,117,478
$1,219,886 $1,326,020 $1,435,996 $1,549,933 $1,667,953
$1,790,184 $1,917,510
Invested Capital ($950,000) ($950,000) ($950,000) ($950,000)
($950,000) ($950,000) ($950,000) ($950,000) ($950,000)
($950,000)

22. Net Return on Investment $20,503 $146,397 $291,946 $446,587
$610,596 $784,259 $967,867 $1,161,724 $1,366,141 $1,582,195
Internal Rate of Return 2.16% 7.56% 9.68% 10.64% 11.15%
11.44% 11.61% 11.71% 11.76% 11.79%
Modified IRR 2.16% 7.43% 9.34% 10.11% 10.44% 10.55%
10.56% 10.50% 10.41% 10.30%
NPV (cash flow + reversion) $26,983 $181,775 $345,390
$518,098 $700,173 $891,902 $1,093,576 $1,305,500 $1,527,983
$1,761,348
PV (NOI + reversion) $2,731,626 $2,940,038 $3,156,113
$3,380,083 $3,612,183 $3,852,658 $4,101,758 $4,359,743
$4,626,879 $4,903,441
Footnotes: a/t = after taxes; Modified IRR = Modified Internal
Rate of Return; PV = Present Value; NPV = Net Present
Value; NOI = Net Operating Income
Reversion = Amount received from the resale; Net Return on
Investment = Cash Flow (a/t To Date) + Net Proceeds from
Resale - Invested Capital.
page 17 of 21
Pro Forma Summary10 Units - Talmadge
4474 Winona Avenue
San Diego, CA 92115
UNIT MIX & MONTHLY SCHEDULED INCOME
Type Units Actual Total Market Total

23. 1 bd / 1 ba 7 $1,462 $10,234 $1,475 $10,325
2 bd / 1 ba 3 $1,785 $5,355 $1,795 $5,385
TOTALS 10 $15,589 $15,710
ANNUALIZED INCOME
Actual Market
Gross Potential Rent $187,068 $188,520
Less: Vacancy ($5,612) ($5,656)
Misc. Income $1,200 $1,200
Effective Gross Income $182,656 $184,064
Less: Expenses ($57,604) ($57,617)
Net Operating Income $125,052 $126,447
Debt Service ($88,777) ($88,777)
Net Cash Flow after Debt Service $36,275 $37,671
Principal Reduction $34,034 $34,034
Total Return $70,309 $71,705
ANNUALIZED EXPENSES
Actual Market
Property Management Fee $9,413 $9,426
Building Insurance $2,195 $2,195

24. Grounds Maintenance $1,560 $1,560
Maintenance $2,500 $2,500
Pest Control $600 $600
Reserves $1,700 $1,700
Taxes - Real Estate $31,136 $31,136
Trash Removal $1,000 $1,000
Utilities - Gas & Electric $2,500 $2,500
Utilities - Water & Sewer $5,000 $5,000
Total Expenses $57,604 $57,617
Expenses Per RSF $8.73 $8.73
Expenses Per Unit $5,760 $5,762
INVESTMENT SUMMARY
Price: $2,649,900
Year Built: 1972
Units: 10
Price/Unit: $264,990
RSF: 6,600
Price/RSF: $401.50
Lot Size: 6,926 sf

25. Floors: 2
APN: 471-151-05-
Cap Rate: 4.72%
Market Cap Rate: 4.77%
GRM: 14.08
Market GRM: 13.97
FINANCING SUMMARY
Loan Amount: $1,699,900
Down Payment: $950,000
Loan Type: Fixed
Interest Rate: 3.25%
Term: 30 years
Monthly Payment: $7,398
DCR: 1.41
page 18 of 21
Demographics10 Units - Talmadge
4474 Winona Avenue
San Diego, CA 92115

26. Population Characteristic 1 Mile 3 Mile 5 Mile
AGES 0-4 3,277 16,145 38,882
AGES 5-9 3,759 17,888 43,693
AGES 10-14 3,345 15,110 37,311
AGES 15-19 3,138 13,990 35,023
AGES 20-24 3,237 15,327 37,355
AGES 25-29 3,353 17,136 40,366
AGES 30-34 3,497 18,542 42,946
AGES 35-39 3,677 19,676 45,519
AGES 40-44 3,611 19,809 46,759
AGES 45-49 3,248 18,914 45,884
AGES 50-54 2,767 16,859 41,549
AGES 55-59 2,220 14,202 35,675
AGES 60-64 1,671 11,240 28,793
AGES 65-69 1,191 8,298 21,908
AGES 70-74 797 5,851 16,077
AGES 75-79 505 4,061 11,530
AGES 80-84 324 2,730 7,855

27. AGES 85+ 740 5,480 14,724
Household Income 1 Mile 3 Mile 5 Mile
Median Household Income $33,556 $46,827 $50,870
< $10000 1,305 7,151 14,960
$10000-$14999 1,799 6,357 14,920
$15000-$19999 1,324 6,002 12,408
$20000-$24999 1,399 5,869 13,151
$25000-$29999 1,163 5,194 11,900
$30000-$34999 1,050 5,148 11,638
$35000-$39999 1,074 5,155 12,103
$40000-$44999 789 4,947 11,739
$45000-$49999 517 3,958 9,865
$50000-$60000 1,056 7,726 19,126
$60000-$74000 1,041 8,295 21,557
$75000-$99999 1,160 10,796 28,192
$100000-$124999 673 6,198 16,668
$125000-$149999 443 3,208 9,229
$150000-$199999 265 2,668 7,607

28. > $200000 440 2,317 6,161
Race Characteristic 1 Mile 3 Mile 5 Mile
Non Hispanic White 17,598 125,660 319,078
Population Black 4,791 23,557 54,849
Population Am In/AK Nat 71 470 1,099
Characteristic Housing 1 Mile 3 Mile 5 Mile
Housing Units 16,993 100,040 245,009
Occupied Housing Units 15,904 94,254 229,150
Owner Occupied Housing Units 4,027 35,650 91,364
Renter Occupied Housing Units 11,877 58,604 137,786
Vacant Housing Units 1,089 5,786 15,859
page 19 of 21
Demographics10 Units - Talmadge
4474 Winona Avenue
San Diego, CA 92115
POPULATION 1 MILE 3 MILE 5 MILE
Male 22,337 (50.36 %) 118,856 (49.27 %) 294,165 (49.70 %)
Female 297,684 (49.64 %) 297,684 (50.73 %) 297,684 (50.30
%)

29. Total Population 44,357 241,258 591,849
AGE BREAKDOWN 1 MILE 3 MILE 5 MILE
Ages 0-4 3,277 (7.39 %) 16,145 (6.69 %) 38,882 (6.57 %)
Ages 5-9 3,759 (8.47 %) 17,888 (7.41 %) 43,693 (7.38 %)
Ages 10-14 3,345 (7.54 %) 15,110 (6.26 %) 37,311 (7.38 %)
Ages 15-19 3,138 (7.07 %) 13,990 (5.80 %) 35,023 (5.92 %)
Ages 20-24 3,237 (7.30 %) 15,327 (6.35 %) 37,355 (6.31 %)
Ages 25-29 3,353 (7.56 %) 17,136 (7.10 %) 40,366 (6.82 %)
Ages 30-34 3,497 (7.88 %) 18,542 (7.69 %) 42,946 (7.26 %)
Ages 35-39 3,677 (8.29 %) 19,676 (8.16 %) 45,519 (7.69 %)
Ages 40-44 3,611 (8.14 %) 19,809 (8.21 %) 46,759 (7.90 %)
Ages 45-49 3,248 (7.32 %) 18,914 (7.84 %) 45,884 (7.75 %)
Ages 50-54 2,767 (6.24 %) 16,859 (6.99 %) 41,549 (7.02 %)
Ages 55-59 2,220 (5.00 %) 14,202 (5.89 %) 35,675 (6.03 %)
Ages 60-64 1,671 (3.77 %) 11,240 (4.66 %) 28,793 (4.86 %)
Ages 65-69 1,191 (2.69 %) 8,298 (3.44 %) 21,908 (3.70 %)
Ages 70-74 797 (1.80 %) 5,851 (2.43 %) 16,077 (2.72 %)
Ages 75-79 505 (1.14 %) 4,061 (1.68 %) 11,530 (1.95 %)

30. Ages 80-84 324 (0.73 %) 2,730 (1.13 %) 7,855 (1.33 %)
Ages 85+ 740 (1.67 %) 5,480 (2.27 %) 14,724 (2.49 %)
page 20 of 21
Demographics10 Units - Talmadge
4474 Winona Avenue
San Diego, CA 92115
HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE
Median Income $33,556 $46,827 $50,870
Less than $10,000 1,305 7,151 14,960
$10,000 -$14,999 1,799 6,357 14,920
$15,000 - $19,999 1,324 6,002 12,408
$20,000 -$24,999 1,399 5,869 13,151
$25,000 - $29,999 1,163 5,194 11,900
$30,000 - $34,999 1,050 5,148 11,638
$35,000 - $39,999 1,074 5,155 12,103
$40,000 - $44,999 789 4,947 11,739
$45,000 - $49,999 517 3,958 9,865
$50,000 - $59,999 1,056 7,726 19,126

31. $60,000 - $74,999 1,041 8,295 21,557
$75,000 - $99,999 1,160 10,796 28,192
$100,000 - $124,999 673 6,198 16,668
$125,000 - $149,999 443 3,208 9,229
$150,000 - $199,999 265 2,668 7,607
Greater than $200,000 440 2,317 6,161
HOUSING 1 MILE 3 MILE 5 MILE
Housing Units 16,993 100,040 245,009
Occupied Units 15,904 94,254 229,150
Owner Occupied Units 4,027 35,650 91,364
Renter Occupied Units 11,877 58,604 137,786
Vacant Units 1,089 5,786 15,859
RACE DEMOGRAPHICS 1 MILE 3 MILE 5 MILE
Population Non Hispanic White 17,598 125,660 319,078
Population Black 4,791 23,557 54,849
Population Am In/Ak Nat 71 470 1,099
page 21 of 21
Finance 331 – Fall 2016