Sumner 5 Unit1270 Sumner Ave, El Cajon CA 92020

Cleanest Units Available in San Diego County

O F F E R I N G M E M O R A N D U M

Sumner 5 UnitCONTENTS

Exclusively Marketed by:

Rob NorthrupLic: 00938658(619) 857-1155Rob@besthomesteam.com

We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or otherconditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct yourown investigation of the property and transaction.

01 Executive Summary Investment Summary 4 Unit Mix Summary 5 Location Summary 6

02 Property Description Property Features 7 Parcel Map 8 Property Images 9

03 Rent Roll Rent Roll 13

04 Financial Analysis Income & Expense Analysis 14 Multiyear Cash Flow Assumptions 15 Cash Flow Analysis 16

05 Demographics Demographics 18 Demographic Charts 20

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Best Homes Team and itshould not be made available to any other person or entity without the written consent of Best Homes Team. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees thatrecipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to Best HomesTeam. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level ofinterest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Best Homes Team has not made any investigation, and makes no warranty or representation withrespect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presenceor absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or financial condition orbusiness prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe reliable; however, Best Homes Team has not verified, and will not verify, any of the informationcontained herein, nor has Best Homes Team conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness ofthe information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses ofinvestigating the subject property.

Sumner 5 Unit Confidentiality and Disclaimer | 03

CONFIDENTIALITY AND DISCLAIMER

PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT BEST HOMES TEAM FOR MORE DETAILS.Copyright © 2020 CREOP, LLC. All Rights Reserved.

Sumner 5 Unit Investment Summary | 04

OFFERING SUMMARY2286 GRAFTON STREET 1270 Sumner Ave

El Cajon CA 92020CALIFORNIA San DiegoMARKET El CajonSUBMARKET BostoniaBUILDING SF 4,375 SFLAND SF 15,232NUMBER OF UNITS 5YEAR BUILT 1991YEAR RENOVATED ongoingAPN 484-211-20-00OWNERSHIP TYPE Fee Simple

FINANCIAL SUMMARYOFFERING PRICE $1,499,900PRICE PSF $342.83PRICE PER UNIT $299,980OCCUPANCY 100.00 %NOI (CURRENT) $73,840NOI (Market) $76,494CAP RATE (CURRENT) 4.92 %CAP RATE (Market) 5.10 %GRM (CURRENT) 20.31GRM (Market) 12.93

PROPOSED FINANCINGProposedLOAN TYPE AmortizedDOWN PAYMENT $524,965LOAN AMOUNT $974,935INTEREST RATE 3.20 %LOAN TERMS 10 yearsANNUAL DEBT SERVICE $50,597LOAN TO VALUE 65 %AMORTIZATION PERIOD 30 Years

DEMOGRAPHICS 1 MILE 3 MILE 5 MILE2019 Population 31,661 151,528 287,3972019 Median HH Income $46,812 $58,722 $73,5592019 Average HH Income $68,651 $81,220 $95,501

Opportunity for increased Rents!

Rents are currently under market for this complex. FMV rents estimated at$1,850. Additional fees could be charged for (1) Covered Parking Spaces -5, and (2) Storage closets.

Sumner 5 Unit Unit Mix Summary | 05

Actual MarketUnit Mix # Units Square Feet Current Rent Rent PSF Monthly Income Market Rent Market Rent PSF Market Income

2 bd + 2 ba 5 875 $0 $0.00 $0 $1,850 $2.11 $9,250

Totals/Averages 5 875 $0 $0.00 $0 $1,850 $2.11 $9,250

Sumner 5 Unit Location Summary | 06

Sumner 5 Unit Property Features | 07

PROPERTY FEATURESNUMBER OF UNITS 5BUILDING SF 4,375LAND SF 15,232LAND ACRES .35YEAR BUILT 1991YEAR RENOVATED ongoing# OF PARCELS 1ZONING TYPE multi familyTOPOGRAPHY levelNUMBER OF STORIES 1NUMBER OF BUILDINGS 1LOT DIMENSION irregularNUMBER OF PARKING SPACES 9PARKING RATIO 1.8POOL / JACUZZI noneFIRE PLACE IN UNIT noneWASHER/DRYER complex

MECHANICALHVAC wallFIRE SPRINKLERS none known

UTILITIESWATER landlordTRASH landlordGAS TenantELECTRIC TenantRUBS none

CONSTRUCTIONFOUNDATION slabFRAMING WoodEXTERIOR wood/stuccoPARKING SURFACE concreteROOF comp - newerSTYLE ranchLANDSCAPING minimal

Sumner 5 Unit Parcel Map | 08

Sumner 5 Unit Property Images | 09

5 super clean, low maintenance units Appealing Facade = higher rents!

Light & Bright Spacious interiors! Modern, open concept floor plans!

Sumner 5 Unit Property Images | 10

Spacious Bedrooms! All 2 bath units

Each unit has private patio! Four Storage lockers - rent $30-$50 per montheach?

Sumner 5 Unit Property Images | 11

Interior of Storage Lockers 5 covered spaces - charge additional $10-$20per month for each covered space?

Outside Laundry Lease Generates $650approximate annually - could be higher

Low maintenance landscaping

Sumner 5 Unit Property Images | 12

Income opportunities Units numbered from Street to back of property

Note—unit 3 is currently occupied by a family member and owner. She will stay

on after closing at $1,850 per month, on a month-to-month rental.

Sumner 5 Unit Rent Roll | 13

Sumner 5 Unit Income & Expense Analysis | 14

INCOME CURRENT MARKET

Gross Potential Rent $72,840 $111,000

Parking $600

RUBS $1,800

Other Income $1,000 $2,570

Effective Gross Income $73,840 $115,970

Less: Expenses $39,476

Net Operating Income $73,840 $76,494

Annual Debt Service $50,597 $50,597

Debt Coverage Ratio 1.46 1.51

Cash Flow After Debt Service $23,243 $25,897

Principal Reduction $19,400 $19,400

Total Return 8.1 % $42,643 8.6 % $45,297

EXPENSES MARKET

Real Estate Taxes $3,936 $19,678

Insurance $600 $3,000

Management Fee $1,160 $5,798

Repairs & Maintenance $800 $4,000

Water / Sewer $720 $3,600

Landscaping $480 $2,400

Utilities $200 $1,000

Total Operating Expense $7,895 $39,476

Annual Debt Service $10,119 $50,597 $10,119 $50,597

% of EGI 34.04 %

Per Unit Per Unit

REVENUE ALLOCATIONCURRENT

DISTRIBUTION OF EXPENSESCURRENT

Sumner 5 Unit Multiyear Cash Flow Assumptions | 15

GLOBALOffering Price $1,499,900Analysis Period 5 year(s)

INCOMEGross Potential Rent 1.30 %

PROPOSED FINANCINGProposedLoan Type AmortizedDown Payment $524,965Loan Amount $974,935Interest Rate 3.20 %Loan Terms 10 yearsAnnual Debt Service $50,597Loan to Value 65 %Amortization Period 30 Years

Sumner 5 Unit Cash Flow Analysis | 16

CASH FLOWCalendar Year CURRENT Market Year 3 Year 4 Year 5Gross Potential RevenueGross Rental Income $72,840 $111,000 $112,443 $113,905 $115,386Parking $600 $600 $600 $600RUBS $1,800 $1,800 $1,800 $1,800Other Income $1,000 $2,570 $2,570 $2,570 $2,570Gross Potential Income $73,840 $115,970 $117,413 $118,875 $120,356Effective Gross Income $73,840 $115,970 $117,413 $118,875 $120,356Operating ExpensesReal Estate Taxes $19,678 $19,678 $19,678 $19,678Insurance $3,000 $3,000 $3,000 $3,000Management Fee $5,798 $5,798 $5,798 $5,798Repairs & Maintenance $4,000 $4,000 $4,000 $4,000Water / Sewer $3,600 $3,600 $3,600 $3,600Landscaping $2,400 $2,400 $2,400 $2,400Utilities $1,000 $1,000 $1,000 $1,000Total Operating Expense $39,476 $39,476 $39,476 $39,476Net Operating Income $73,840 $76,494 $77,937 $79,399 $80,880Annual Debt Service $50,597 $50,597 $50,597 $50,597 $50,597Cash Flow $23,243 $25,897 $27,340 $28,802 $30,283

Effective Gross Income vs Operating Expenses Cash Flow

Sumner 5 Unit Cash Flow Analysis | 17

Calendar Year CURRENT Market Year 3 Year 4 Year 5Financial MetricsCash on Cash Return b/t 4.43 % 4.93 % 5.21 % 5.49 % 5.77 %CAP Rate 4.92 % 5.10 % 5.20 % 5.29 % 5.39 %Debt Coverage Ratio 1.46 1.51 1.54 1.57 1.60Gross Multiplier (GRM) 20.31 12.93 12.77 12.62 12.46Loan to Value 64.96 % 63.70 % 62.40 % 60.92 % 59.50 %Breakeven Ratio 68.52 % 77.67 % 76.71 % 75.77 % 74.84 %Price / SF $342.83 $342.83 $342.83 $342.83 $342.83Price / Unit $299,980 $299,980 $299,980 $299,980 $299,980Income / SF $16.87 $26.50 $26.83 $27.17 $27.50

Sumner 5 Unit Demographics | 18

POPULATION 1 MILE 3 MILE 5 MILE

2000 Population 27,608 138,650 269,006

2010 Population 30,117 144,856 276,003

2019 Population 31,661 151,528 287,397

2024 Population 32,159 154,289 292,316

2019-2024: Population: Growth Rate 1.55 % 1.80 % 1.70 %

2019 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE

less than $15,000 1,463 5,191 7,566

$15,000-$24,999 1,317 5,205 7,628

$25,000-$34,999 1,315 5,090 8,006

$35,000-$49,999 1,472 6,629 11,241

$50,000-$74,999 1,881 9,196 17,352

$75,000-$99,999 1,068 6,735 14,357

$100,000-$149,999 1,114 7,792 18,714

$150,000-$199,999 547 3,690 9,543

$200,000 or greater 468 2,802 7,742

Median HH Income $46,812 $58,722 $73,559

Average HH Income $68,651 $81,220 $95,501

HOUSEHOLDS 1 MILE 3 MILE 5 MILE

2000 Total Housing 10,072 51,417 99,309

2010 Total Households 10,211 50,433 98,469

2019 Total Households 10,645 52,332 102,149

2024 Total Households 10,774 53,113 103,615

2019 Average Household Size 2.88 2.84 2.77

2000 Owner Occupied Housing 3,531 23,178 56,672

2000 Renter Occupied Housing 6,278 26,741 40,093

2019 Owner Occupied Housing 4,026 24,246 58,088

2019 Renter Occupied Housing 6,618 28,086 44,061

2019 Vacant Housing 422 2,393 4,256

2019 Total Housing 11,067 54,725 106,405

2024 Owner Occupied Housing 4,161 25,045 59,576

2024 Renter Occupied Housing 6,614 28,068 44,039

2024 Vacant Housing 441 2,506 4,442

2024 Total Housing 11,215 55,619 108,057

2019-2024: Households: Growth Rate 1.20 % 1.50 % 1.45 %

Source: esri

Sumner 5 Unit Demographics | 19

2019 POPULATION BY AGE 1 MILE 3 MILE 5 MILE

2019 Population Age 30-34 2,503 11,794 22,040

2019 Population Age 35-39 2,083 10,172 19,276

2019 Population Age 40-44 1,846 8,956 16,577

2019 Population Age 45-49 1,733 8,814 16,777

2019 Population Age 50-54 1,891 8,924 17,551

2019 Population Age 55-59 2,017 9,801 19,869

2019 Population Age 60-64 1,791 9,104 18,641

2019 Population Age 65-69 1,337 7,155 15,321

2019 Population Age 70-74 990 5,579 11,989

2019 Population Age 75-79 705 3,653 7,668

2019 Population Age 80-84 464 2,415 5,199

2019 Population Age 85+ 568 2,714 6,002

2019 Population Age 18+ 24,062 116,045 224,427

2019 Median Age 34 36 38

2019 INCOME BY AGE 1 MILE 3 MILE 5 MILE

Median Household Income 25-34 $53,614 $61,990 $73,894

Average Household Income 25-34 $72,757 $79,930 $89,154

Median Household Income 35-44 $55,075 $69,741 $87,784

Average Household Income 35-44 $79,901 $89,364 $105,245

Median Household Income 45-54 $57,577 $71,901 $90,696

Average Household Income 45-54 $81,823 $93,331 $112,316

Median Household Income 55-64 $47,589 $63,816 $81,782

Average Household Income 55-64 $66,379 $86,132 $105,434

Median Household Income 65-74 $35,707 $50,509 $62,115

Average Household Income 65-74 $52,471 $74,836 $89,384

Average Household Income 75+ $46,900 $58,382 $66,211

2024 POPULATION BY AGE 1 MILE 3 MILE 5 MILE

2024 Population Age 30-34 2,769 11,840 21,806

2024 Population Age 35-39 2,427 11,449 22,197

2024 Population Age 40-44 2,020 9,985 19,310

2024 Population Age 45-49 1,803 8,967 16,671

2024 Population Age 50-54 1,662 8,560 16,533

2024 Population Age 55-59 1,770 8,434 16,781

2024 Population Age 60-64 1,804 9,189 18,625

2024 Population Age 65-69 1,589 8,152 16,980

2024 Population Age 70-74 1,107 6,278 13,610

2024 Population Age 75-79 839 4,738 10,316

2024 Population Age 80-84 559 2,885 6,185

2024 Population Age 85+ 563 2,771 6,193

2024 Population Age 18+ 24,438 118,463 229,194

2024 Median Age 35 37 39

2024 INCOME BY AGE 1 MILE 3 MILE 5 MILE

Median Household Income 25-34 $57,927 $67,206 $78,077

Average Household Income 25-34 $80,251 $86,560 $96,652

Median Household Income 35-44 $61,670 $78,035 $98,647

Average Household Income 35-44 $89,744 $99,831 $119,073

Median Household Income 45-54 $61,145 $77,848 $98,905

Average Household Income 45-54 $90,022 $102,385 $123,456

Median Household Income 55-64 $51,881 $69,395 $88,957

Average Household Income 55-64 $74,656 $94,751 $116,967

Median Household Income 65-74 $38,498 $54,735 $69,488

Average Household Income 65-74 $58,595 $83,885 $102,078

Average Household Income 75+ $49,817 $66,752 $76,826

Sumner 5 Unit Demographic Charts | 20

1 Mile Radius 3 Mile Radius 5 Mile Radius

2019 Household Income

Sumner 5 Unit Demographic Charts | 21

2019 Household Occupancy - 1 Mile Radius

Average Income Median Income

2019 Household Income Average and Median

Sumner 5 Unit

Exclusively Marketed by:

Rob NorthrupLic: 00938658(619) 857-1155Rob@besthomesteam.com

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