Opportunity coming to an end – Cap Rate 9.9%

The Grass Valley 2 home property is being taken off the market September 8, 2017. The owner is getting many inquiries to rent rooms. They will utilize the property as a resident income property. The property is not going to be a care home. The homes will be operating as investment property to maximize return on investment.

They are expecting a capitalization rate around 8.2% to 9.9%.  If you like to take one more look at the opportunity to see if it will fit your real estate investment goals let me know quickly. We can still make an offer. We will pass on all management and rental info.

Here are the numbers used to get the cap rate.

Here are 2 ways to rent main house.

Income:

#1- rent 6 – 2 room master suites – $1,500 each = $9,000 plus 1- master suite $1,000 plus one room $800 = $10,800 a month = $129,600 a year + second home $24,000 = $153,600 yearly gross rent

#2 rent rooms like co-housing property – 12(individual) x $800 = $9,600 plus 2 rooms double occupancy $1,600 each = $12,800 per month = $153,600 per year + second home $24,000 = $177,000 yearly gross rent

Plus, second 3 bedroom and 2 bath home – $2,000 per month = $24,000 a year

Expenses:

Property Taxes $20,250

Management $3,000

Maintenance $12,000

Utility bills $7,000

Total estimated Expenses = $42,250

Cap Rate:

#1 – equals $111,350 to #2 equals $134,750 net income (net income equals gross rent minus expenses)

Cap rate = #1 -8.2% to #2 -9.9%

The sale price of $1,350,000

If there is an accepted lower sale price the cap rate will go up.

See the Property

Email – by reply or dan@housingsacramento or Call or text my cell – 916.276.8482

Dan Parisi

Real Estate Broker

BRE # 01923081 NMLS # 997987