Mammoth Lakes, Adjacent to the Mammoth Lakes Multi-Use Path

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104 Joaquin

“Four Units with a Detached Two-Car Garage”

For more information on this property: Matthew Lehman 760 822-5845 www.MatthewLehmanRealEstate.com [email protected] Matthew Lehman Real Estate Disclaimer. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantees, warranties or representations. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections,1 opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. Any information important to you should be verified through sources in which you feel confident.

Executive Summary Property 104 Joaquin Four unit located centrally located in Mammoth Lakes, adjacent to the Mammoth Lakes Multi-Use path. These three units have a Price $1,145,000 proven rental history, with the most recently rented unit # Units 4 demonstrating upside rent potential. Current Occupancy 100% Current Gross Rent $79,800 Four, two-bedroom, one bath units and a detached two-car garage. 2021 Renewable Rents $84,630 The floor plans for each unit are same with rents ranging from $1,450 to $1,900 per month. Unit “D” has been recently upgraded, Market Rents $87,630 reflecting the highest of the four rents. GRM on Market Rents 13.07

This complex reflects an average condition for apartment rentals in the neighborhood, with upside potential for the owner looking to self-manage and complete their own repairs and maintenance.

Investment Highlights

• Close to Multi-Use Path • Blocks from School bus stop • Near restaurants and public transportation • No Vacancies

Property Descriptions

104 Joaquin Road is a four-unit apartment building located at the western edge of the Sierra Valley Sites neighborhood in Mammoth Lakes. The property has a main building consisting of four two-bedroom, one bath residential units as well as a detached two-car garage.

The structures were built in 1979 with approximately 3,136 square feet of living area. The improvements site on .26 acres (11,325 square feet) of level land which back to Mammoth Lake’s multi-use (bike) path.

The property is zoned RMF-1, or Residential Multi-Family 1, per the Town of Mammoth Lakes. 104 Joaquin- Front

Actual rents in these buildings range from $1,450 to $1,900 with each side of the garage renting for $125 per month. Rent for “C” includes the garage rent. Given the strong rental market and the recent lease for Unit “D”, market rents for upgraded units should bring $1,900 per month. Increasing current rents to “market” to would be subject to recent changes in California Law AB 1482. See rent summary herein.

Current rents have been kept on Month-To-Month basis to allow the new ownership flexibility in a new rent structure.

Rent Summarys

104 Joaquin Increase CPI Current Increase ** Allowable 2021 Market* Bedroom Bath Unit # s s Rent Garage 5% 1% Increase Renewable Rent Deposit Lease to A 2 1 $1,450.00 $72.50 $14.50 $87.00 $1,537.00 $1,537.00 $0 Mo-To-MO B 2 1 $1,600.00 $80.00 $16.00 $96.00 $1,696.00 $1,696.00 $0 Mo-To-MO C 2+Gar 1 $1,575.00 $78.75 $15.75 $94.50 $1,669.50 $1,669.50 $0 Mo-To-MO D 2 1 $1,900.00 $95.00 $19.00 $114.00 $1,900.00 $1,900.00 $0 Mo-To-MO Garage 1 "C" $250 $250 $0 Garage 2 $125 $250 $250 $0 Total $6,650 $7,053 $7,303 $0 Annual PGI $79,800 $84,630 $87,630

Financials – Income and Operating Statement

Income and Operating Expense % of Actual 2021 Market 104 Joaquin Eff. Gross Renewable Rent Project Value Assumptions Estimated Land (30% of Total Value) $343,500 $343,500 $343,500 Estimated Building (70% of Total Value) $801,500 $801,500 $801,500 Purchase price (Projected) $1,145,000 $1,145,000 $1,145,000 Projected ROI 4.93% 4.94% 5.19% Net Operating Income Summary Current 2021 Market INCOME Potential Gross Rent (From Current Rent Roll) $79,800 $84,630 $87,630 Gross Rent Multiplier (GRM) 14.35 13.53 13.07 Total PGI $79,800 $84,630 $87,630 Less: Rental Vacancy (Included in rents) Effective Gross Income $79,800 $84,630 $87,630 EXPENSES Water and Sewer 2.9% $2,340.00 $2,457.00 $2,457.00 Insurance Expenses 2.4% $1,905.00 $2,000.25 $2,000.25 Management Fees 5.0% $0.00 $4,231.50 $4,381.50 Trash 4.2% $3,360.00 $3,528.00 $3,528.00 Repairs and Maintenance 0.0% $0.00 $0.00 $0.00 Snow Removal 2.8% $2,250.00 $2,362.50 $2,362.50 Taxes Property (prop 13) 1.18% of purchase price 16.93% $13,511 $13,511 $13,511 Total Rental Expenses 29.3% $23,366.00 $28,090.25 $28,240.25 Net Income $56,434 $56,540 $59,390

Capital Improvements 2020 $0

*Current Expenses do not reflect expenses for Management or Repairs & Maintenance as the owner self-manages and repairs the property himself **Projected expenses do assume management and repair expenses as indicated

Comparable Sales and Listings

Sales & Listings Address Total Units Year Built Sale Date Price Gross GRM 33 Arrowhead Dr. 7-Units 1976 3/25/2020 $1,150,000 $111,192 10.34 208 Joaquin 4+8 Garages 1990 1/2/2020 $1,024,000 $74,400 13.76 340 Chaparral Dr. 6 Units 1981 12/17/2019 $850,000 $74,280 11.44 16 Davison 12 1965 Active $1,600,000 $169,800 9.42 127 Joaquin 2 1967 Pending $625,000 $31,200 20.03 112 Manzanita 2 1981 3/20/2020 $605,000 $42,600 14.2 168 Mono Street 4 1975 Active $1,305,000 $95,618 13.65 169 Lupin Street 4 1990 Active $1,305,000 $88,680 14.72 363 Manzanita 5 1990 Active $1,402,000 $94,692 14.81

(See Housing Market Information – Following Page)

Residential Real Estate Market – Mammoth Lakes

The single family residential real estate market plays an important role in multi-family market for a variety of reasons:

• As single-family housing and condominium prices increase in Mammoth Lakes, market rents tend to increase as new owners find the need to cover expenses • The COVID-19 Pandemic has increased the demand for housing in semi-rural communities like Mammoth Lakes • Second homeowners are finding nightly rentals to be a convenient method of using their new home/condo when its not being rented on a nightly basis • With the evolution of Airbnb, VRBO and other nightly rental services, owners are finding nightly rentals to be more profitable than long term rentals, as a result the supply of long-term housing is diminishing, and rates have been increasing • Increasing governmental regulations on new construction has created enormous barriers for entry

Single Family Homes

Avg. % change Median Single Family Homes Median Price ear #Sales Average Price Median Price DOM Price Does not include USFS leases or moblie homes in leased spaces $1,600,000 2007 41 $1,078,709 $900,000 159 2008 44 $1,093,502 $829,500 167 -7.83% $1,400,000 2009 60 $827,788 $667,250 180 -19.56% $1,200,000 2010 70 $885,442 $641,190 164 -3.91% 2011 72 $671,627 $560,000 169 -12.66% $1,000,000 2012 87 $677,612 $598,611 215 6.89% $800,000 2013 83 $816,326 $600,000 172 0.23% 2014 83 $762,061 $622,000 175 3.67% $600,000 2015 80 $986,324 $765,000 204 22.99% $400,000 2016 97 $826,079 $721,500 190 -5.69% 2017 89 $936,500 $775,000 186 7.42% $200,000 2018 79 $1,085,436 $920,000 176 18.71% $0 2019 90 $929,786 $792,786 133 -13.83% 2020 126 $1,078,455 $885,000 130 11.63% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 21 $1,897,976 $1,500,000 137 69.49%

Condominiums

The Mammoth Lakes single family home market has been experiencing strong increases since 2011, with the most notable increases in 2021. The most recent increase is attributed to low interest rates and increasing demand for semi-rural living (quality of life).

Year # Avg. Price Median Price Avg. DOM % Chg. in Sales Median Price 2007 278 $651,157 $540,700 100 2008 206 $555,530 $475,000 148 -12.15% 2009 295 $387,292 $325,000 162 -31.58% 2010 375 $350,657 $280,000 155 -13.85% 2011 306 $300,799 $242,000 98 -13.57% 2012 298 $294,415 $244,500 180 1.03% 2013 342 $318,703 $264,000 156 7.98% 2014 248 $350,837 $295,000 156 11.74% 2015 268 $349,242 $308,700 140 16.93% 2016 249 $286,301 $275,000 150 -10.92% The Lodges 2017 410 $397,400 $350,000 118 27.27% 2018 349 $452,508 $400,000 93 14.29% 2019 387 $524,462 $450,500 118 12.63% Condo Median Price 2020 442 $558,591 $475,000 104 5.44% $600,000 2021 64 $551,369 $492,500 61 9.32% $500,000

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Location Overview crest of the mighty Sierras to the Nevada state line to the east. Its The subject properties are in the Town of Mammoth Lakes, County of Mono land area is 3,030 square miles, in the State of California. The Town of Mammoth Lakes is known as the 80% of which is federally owned. gateway to the Eastern Sierras and Mammoth Mountain Ski Area (MMSA). Much of this land is contained in the Mammoth is in the heart of California's Sierra Nevada Mountain Range, Inyo and Toiyabe National Forests. approximately 310 miles north of Los Angeles, 170 miles south of Reno, The summer and fall visitors enjoy Nevada and only 40 minutes from Yosemite National Park's eastern entrance. many activities such as fishing,

hunting, camping, hiking and some of Mono County the most spectacular scenery found in

the Sierra Nevada Mountains. Mono County was created by a Legislature Act on April 21, 1861 and was the Winter visitors engage in skiing, first of the mining counties to be organized on the eastern slope of the Sierra snowmobiling and other various Nevada Mountains in the state of California. The county seat is in the town of winter sports at two of the finest Bridgeport, where most of the county offices are in the historic courthouse winter skiing areas in the country built in 1880. The remaining County offices and courts are located in (Mammoth and June Ski Mammoth Lakes, Ca. Mountains).

Located in the eastern-central section of California, Mono County is 108 These extraordinary mountain boundaries offer miles in length, reaching from the Alpine County border to the north to the precipitous canyons, broad valleys, many crystal-clear lakes of glacial Inyo County border to the south. The County’s width is 38 miles from the formation and a unique sage brush covered semi-desert land. The Sierra Nevada boundary is dominated by three towering peaks (Mt. Dana, Mt. Lyell and Castle Peak) which rise to an elevation exceeding 13,000 feet. Driving Distances to Major The county’s drainage is realized Areas Miles by the East and West Walker

rivers to the north, the Owens River to the south and many Los Angeles 310 innumerable Sierra streams. Orange County 341 San Diego 396

Las Vegas 308 Reno, Nevada 170 San Francisco (Winter Route) 329 Santa Barbara 363

Yosemite Valley 103

Mammoth Lakes, Mammoth Mountain Ski Area (MMSA) California MMSA is the closest major ski resort to Southern California's 23 million The Town of Mammoth residents which provide approximately 85% of MMSA's visitors. From a peak Lakes ("Mammoth"), elevation of 11,053 feet, MMSA has a vertical drop of 3,100 feet with more home to Mammoth than 3,500 acres of skiable terrain. The Mountain’s unusual geography and Mountain Ski Area massive snowfalls, combined with typical California sunshine, create a unique ("MMSA"), is in the mountain environment. heart of California's majestic Sierra Nevada News in 2014/2015 mountain range. came from the owners of MMSA Mammoth's unique with the purchase of location makes it a natural gateway to the backcountry of the Sierras, “Big Bear” and including Yosemite National Park ("Yosemite"), Devil's Postpile National “Snow Summit”; ski Monument, Bristlecone National Forest, Mt. Whitney (the highest point in the resorts in Southern continental United States), and Death Valley (the lowest point in the California. More continental United States). recently, Mammoth Mountain Ski Area Mammoth is bordered by Forest Service land on all sides and with boundaries partnered with the of the town effectively set and not likely to experience substantial, if any owners of Aspen change. These set boundaries limit the availability of developable real estate Ski Company to and firmly affect the town real estate market to the principals of supply and form Alterra Mountain Company; owner and operators of more than 15 ski demand. MMSA, located within the town of Mammoth Lakes, is the major destinations. Through the IKON ski pass, members are afforded access to more winter tourist attraction in the area and has long played a major role in the than 44 ski destinations. Eastern Sierra economy. Mammoth estimates 35,000 to 40,000 skiers visit the Mammoth Lakes area on peak winter weekends and holidays. Most of the In addition to capitalizing on winter events, MMSA and the Town of winter tourists are reported to originate from Southern California, averaging Mammoth Lakes have opted to take advantage summer activities. MMSA has 3.4 nightly stays during a visit. Hiking, camping, fishing, and nearby revived the Kamikaze Bike Games, an event originating on Mammoth Yosemite are the primary draws of tourism during the late spring, summer Mountain and revolutionized on-mountain biking experience as we know it. and early fall months. Mammoth Mountain Ski Area is also in the final stages completing a land A key factor making Mammoth Lakes a world class, year-round destination, exchange located at the Main Lodge area of the resort. Through the exchange, is the growth of commercial air service provided by JSX and United Airlines. MMSA hopes to convert 20 acres of Forest Service lease land fee simple Last year’s winter connections included Denver, San Francisco, and Los ownership. Finalization of this exchange will allow MMSA to enhance and Angeles. build new hotels, as well as commercial and residential uses, replacing more dated facilities. The vision for the future is a village community for those enjoying the amenities provided by the resort.