Vacation Rental w/Instant Equity

Palm Springs, CA

Bedrooms: 4, Bathrooms: 3.0, Sqft: 1798, Lot Size: 11326, Year Built: 1963
Brought to you by:
REI/kit
(855) 234-FLIP
info@reikit.com
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Notes

Prime OFF MARKET home in Palm Springs! This home is located in the highly desirable "Tahquitz River Estates" area of South Palm Springs. Palm Springs is red-hot with renowned festivals, eateries, and world-class museums! Surrounded by Million dollar homes this house is definitely in good company. With a lot of the boring work already done, new roof, new HVAC, and a new electrical panel you won't run into surprises. So, functionality has been taken care of, now it's up to you for the cosmetics. You have plenty of yard to be creative with, the 11,326 square foot lot provides stunning views with tons of entertaining space. The home checks all the Palm Springs boxes to get the biggest bank for your buck, now it's just up to you to bring this great property back to life and cash in the big check! Hope to see you in the next couple of days! link to additional document
Molino1

Financial Summary

Project Costs

Purchase Price
$500,000
Purchase Costs
$33,000
Rehab Costs
$58,000
Rehab Contingency (10%)
$5,800
Rehab Holding Costs
$51,705
Total Project Costs
$648,505
Financing
($413,800)
Cash out of Pocket
$234,705
Rehab Project Length
9 Month(s)

Project Returns

Sales Price
$741,000
Project Costs
($648,505)
Sale Costs
($70,340)
Profit Amount
$22,155
Hard money loan Partner Share (5.00%)
$1,108
Remaining Share
$21,047
ROI
9.44%
ROR
12.59%
Unlevered ROI
3.42%
Unlevered ROR
4.56%

Comps

AddressDistBedsBathsSqftSold ($)$/sqftSale date
Palm Springs, CA0.33 miles32.01225$487,700$3982016-10-21
Palm Springs, CA0.23 miles32.01225$550,000$4492016-12-07
Palm Springs, CA0.05 miles32.01456$575,000$3952017-01-19
Palm Springs, CA0.044 miles32.01816$575,000$3172016-10-13
Average:$546,925$389 

CMA Summary

By Average of Sales

Adjusted Comps

Avg of Adjusted Sales ARV
$586,562
Subject Sqft
1,798
Adjusted $/sqft
$326

Unadjusted Comps

Avg of Sales ARV
$546,925
Subject Sqft
1,798
Avg of Sales $/sqft
$304

By Average of $/Sqft

Adjusted Comps

Avg of Adjusted $/sqft
$419
Subject Sqft
1,798
Calculated Adj. ARV
$753,362

Unadjusted Comps

Avg of Unadjusted $/sqft
$389
Subject Sqft
1,798
Calculated ARV
$699,422

CMA Detail

BasicsSubjectComparable Comparable Comparable Comparable
Molino1Isust6h89f9x5n0000000000Ismmjg64a9lvk80000000000Isaxvrbq10q3261000000000Iseg5bd4t2r75s1000000000
AddressPalm Springs, CAPalm Springs, CAPalm Springs, CAPalm Springs, CAPalm Springs, CA
Sold Date2015-07-272016-10-212016-12-072017-01-192016-10-13
Sold $$349,000$487,700$550,000$575,000$575,000
Sqft1,7981,2251,2251,4561,816
$/sqft$194$398$449$395$317
Features
Feature Values
UnitsUnitsAdjustmentUnitsAdjustmentUnitsAdjustmentUnitsAdjustment
Bedrooms
$10,0004.003.00$10,0003.00$10,0003.00$10,0003.00$10,000
Bathrooms
$5,0003.002.00$5,0002.00$5,0002.00$5,0002.00$5,000
Garage spaces
$02.000.00$00.00$02.00$00.00$0
Carport spaces
$00.000.00$00.00$00.00$00.00$0
Lot size sqft
$1,538,40711,326.0010,454.00$30,7969,583.00$61,55710,890.00$15,39810,454.00$30,796
Pool
$10,0000.001.00($10,000)1.00($10,000)1.00($10,000)1.00($10,000)
Basement sqft
$00.000.00$00.00$00.00$00.00$0
Has pool
$00.000.00$00.00$00.00$00.00$0
Has view
$00.000.00$00.00$00.00$00.00$0
Adjustment Subtotals$35,796$66,557$20,398$35,796
Adjusted $/sqft$326$427$503$409$336
Adjusted ARV $$586,562$523,496$616,557$595,398$610,796
Notes

Purchase Costs

NameTypeCost
Inspection$ Amount$500
Closing1.00 % of Purchase$5,000
Commission3.00 % of Purchase$15,000
Auction2.50 % of Purchase$12,500
Total Purchase Costs:$33,000

Sale Costs

NameTypeCost
Commission6.00 % of Sale$44,460
Broker Fee$ Amount$300
Closing Costs1.00 % of Sale$7,410
Buyer's Closing Costs2.00 % of Sale$14,820
Title Insurance$ Amount$350
Staging$ Amount$2,500
Photography$ Amount$500
Total Sale Costs:$70,340

OpEx: Utilities & Periodic Costs

Annual Expense Growth Rate: 3.0%

NameSetup ($)Amount ($/period)Cost
Property Taxes$0$7,000/ Year$5,250
Property Management$010.00 % of Receipts$4,050
Water$0$50/Month$450
Electric$0$100/Month$900
Gas$0$50/Month$450
Alarm$500$30/Month$770
Insurance$0$200/Month$1,800
Total OpEx Costs:$13,670

Loans

NameAmount Financed ($)Rate (%)PointsFeesTermTotal of Payments
Hard money loan.

An interest only purchase loan for the financing of custom amount

$350,00010.00%2.00$0280 Days$33,250
Rehab costs loan.

An interest only purchase loan for the financing of rehab costs

$63,80010.00%0.00$0280 Days$4,785
Total Payments:$38,035

Detailed Rehab Estimate

ItemQtyCost

Windows

Windows, Vinyl Windows, Vinyl double-hung stock replacement windows, 7/8" insulating Low-E glass, 36" x 50"
5.0 Each @ $214.91$1,074.55
Windows, Vinyl Windows, Vinyl single-hung stock replacement windows, insulating glass, 52" x 49-1/2"
5.0 Each @ $197.57$987.85
Windows, Aluminum Windows, Aluminum single-hung vertical sliding bronze windows, insulating glass, 3' x 4' 4"
5.0 Each @ $166.36$831.80
Windows, Specialty Windows and Skylights, Fixed curb-mount skylights, Velux, 46-1/2" x 46-1/2"
4.0 Each @ $494.70$1,978.80
Windows, Wood Windows, Wood double-hung windows, 2'8" x 5'2"
5.0 Each @ $300.59$1,502.95
Windows, Storm Windows, Aluminum storm windows, 32" x 63", white finish
5.0 Each @ $78.34$391.70
Windows Subtotal:$6,767.65

Rough Carpentry

Rough Carpentry, Framing Room Additions, Wall studs - room addition, 4" x 4", Std & Btr, Installed in wall framing, with 10% waste
10.0 LF @ $3.35$33.50
Rough Carpentry, Changes to Roof Framing, Rafters, 2" x 10", Std & Btr, 16" centers (1.97 BF per SF)
5.0 Square Feet @ $2.45$12.25
Rough Carpentry, Changes to Walls and Ceilings, Remove and replace interior partition wall, 2" x 6" stud walls with 1/2" gypsum drywall both sides, ready for painting, Cost per running foot, 8' high wall
50.0 LF @ $43.14$2,157.00
Rough Carpentry, Changes to Walls and Ceilings, Remove and replace exterior wall, 2" x 6" stud walls with drywall interior, wood siding exterior, same construction as above, except with 6-1/4" R-19 insulation, Cost per running foot, 8' high wall
10.0 LF @ $56.30$563.00
Rough Carpentry Subtotal:$2,765.75

Roofing and Flashing

Roofing and Flashing, Slate and Tile Roofing, Roofing tile, clay, Red clay mission tile, 2-piece, 86 pans and 86 tops per square, 7-1/2" x 18" x 8-1/2" tiles at 11" centers and 15" exposure, Red clay tile
30.0 Sq @ $570.18$17,105.40
Roofing and Flashing Subtotal:$17,105.40

Floors and Tile

Floors and Tile, Wood Strip and Plank Flooring, Bruce oak solid hardwood strip flooring, Gunstock (eastern)
1600.0 Square Feet @ $9.34$14,944.00
Floors and Tile Subtotal:$14,944.00

Kitchens

Kitchens, Dishwashers, 13-cycle stainless steel interior dishwasher, Jenn-Air, Dishwasher
1.0 Each @ $811.41$811.41
Kitchens, Mounted Microwave Ovens, 1.4 cubic foot over-the-range microwave oven, Stainless
1.0 Each @ $278.26$278.26
Kitchens, Wall Ovens, 30" electric double wall oven, Choice of finishes
1.0 Each @ $1,903.52$1,903.52
Kitchens, Cooktops, 30" gas cooktop, Maytag, No
1.0 Each @ $827.22$827.22
Kitchens, Stainless Steel Sinks, Stainless steel single bowl sink, Signature Series, Elkay, 33" x 22", 18 gauge
1.0 Each @ $235.21$235.21
Kitchens, Custom Countertops, Engineered stone countertops, Large dark chips, 3/4" square edge
0.0 Square Feet @ $63.79$0.00
Kitchens, Custom Countertops, Solid surface countertops, Color Group 3, Premium edge
40.0 Square Feet @ $80.51$3,220.40
Kitchens, Kitchen Cabinets, Finished Kitchen Cabinets, Oak finished wall cabinets, 30" wide x 18" high, 2 doors
15.0 Each @ $160.34$2,405.10
Kitchens, Kitchen Cabinets, Finished Kitchen Cabinets, Oak finished base cabinets, 18" wide, 3-drawer base
20.0 Each @ $282.74$5,654.80
Kitchens, Range Hoods, Custom range hood power package, 700 CFM, dual blowers, 7" duct, 1.5 to 4.6 sones, 48" wide x 28" deep
1.0 Each @ $914.33$914.33
Kitchens Subtotal:$16,250.25

Plumbing and HVAC

Plumbing and HVAC, Gas Water Heaters, 75-gallon gas water heater, 70,000 Btu, Low-NOx
1.0 Each @ $2,793.88$2,793.88
Plumbing and HVAC, Heating System Renovations, Gas wall furnace, 60,000 Btu, pilot ignition
1.0 Each @ $1,127.10$1,127.10
Plumbing and HVAC Subtotal:$3,920.98

Electrical

Electrical, Recessed Lighting, Recessed low-voltage slot aperture light kit, remodel, Commercial Electric, 4", white slot aperture trim
20.0 Each @ $92.41$1,848.20
Electrical, Ceiling Fans, San Marino(tm) ceiling fan with light kit, Hampton Bay(tm), 36", brushed steel
5.0 Each @ $136.17$680.85
Electrical, Lighting Fixtures, Glass chandelier, 6 light, brushed nickel
1.0 Each @ $299.47$299.47
Electrical Subtotal:$2,828.52

Porches and Decks

Porches and Decks, Pool and Spa Replastering, Pool replastering and resetting pool fixtures, Deep color plaster aggregate
30.0 LF @ $59.46$1,783.80
Porches and Decks, Post and beam wood deck, Based on rectangular 12' x 10' deck with railing on four sides and stairway, 24" above ground level, With 2" Thompsonized plank
300.0 Square Feet @ $20.31$6,093.00
Porches and Decks Subtotal:$7,876.80

Painting and Finishing

Painting and Finishing, Labor Estimates for Painting, Cost to repaint a home interior, Repaint a home interior, per 100 SF of floor
20.0 100 Square Feet @ $136.37$2,727.40
Painting and Finishing, Labor Estimates for Painting, Cost to repaint a home exterior, Repaint a home exterior, per 100 SF of floor
20.0 100 Square Feet @ $97.51$1,950.20
Painting and Finishing Subtotal:$4,677.60

Doors

Door 2
1.0 Each @ $2,500.00$2,500.00
Doors Subtotal:$2,500.00

Setup

General contractor markup
20.00 %$16,920.89
Materials sales tax
9.00 %$4,967.48
Total Cost:$101,525.31