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 2 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. 3 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 4 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 5 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) 6 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% 7 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 $400,000 $300,000 $200,000 $100,000 $0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 8 Location Overview crest of the mighty Sierras to the Nevada state line to the east.