Phase 1: 4070 Hope Ave. Concord 94521

Summary of Plan:

- $480K Acquiring property

- $15K Making improvements to Kitchen, baths, Landscaping

- $ 2,600 Rent

- $194K Build ADU and Garage

- $2,500 Rent

- $490,000 Refinance 70% of $700K new appraisal

- $203K Invested (taking $125K back out on refinance)

- 8.5% ROI on $203K

$480,000 Purchase Price

$125,000 = $120,000 25% down payment + $5,000 closing fees

$13,000 Kitchen & Bathroom Updates (See Realflow Estimate)

$365,000 Financed @ 3.5% 30 yr. fixed loan =

$1617 mortgage

$2,000 Landscaping

$140,000 Capital investment

$2,600 Rent/month

- $1,617/mo. mortgage @ 3.50% 30 yr. fixed loan

- $100/mo. Insurance

- $130/mo. 5% maintenance

- $130/mo. 5% vacancy

- $150/mo. Property Mgmt.

- $400/mo. Property Tax

$ 73/mo. Net monthly income

$876yr ROI = Or, Break even

Phase 2: Jan 2017 Build 640 sq. ft. second unit

+ 480 sq. ft. garage

Agency Fees

$991 Concord Planning

$20,500 Water Fee

$2,500 Building Permit* TBD

$2,774 Sewer fee

$813 Traffic Fee

$4,173 Parkland Fee

$2,240 School District

$33,991 Total Agency Fees

Construction Estimates

$74,000 @ $120 sq. ft. 2nd unit

$30,000 foundation & utility hookups

$3,500 Engineering Soil and site survey

$20,000 Convert garage to two bedroom/bath

$3,000 Landscaping

$6,000 Project Management

$15,000 @ $25 sq. ft. 600 sq. ft. Garage

$2,500 Gas & Electric fee

$154,000 Construction Total

$187,991 ADU Accessory Dwelling Unit

$327,991 = $140,000 Phase 1 investment + $187,991

ADU

$2,500 Rent/month 2nd Unit 1,240 sq. ft. 3/2 - 3% ann. increase

$2,600 Rent/month 1st Unit 1,520 sq. ft. 3/2 - 3% ann. increase

$5,100 rent/month

- $1,617/mo. mortgage @ 3.50% 30 yr. fixed loan

- $150/mo. - Insurance

- $255/mo. - 5% maintenance

- $255/mo. - 5% vacancy

- $300/mo. - Property management

- $500/mo. - Property Tax

$2,023/mo. - Net monthly income

$24,276/yr. ROI = $2023 x 12

7.4% ROI = $24,276/$327,991 investment capital

$700,000 Appraised Value July 2018 for 2,160 sq.ft. 4 bed/3 bath

$490,000 70% Refinanced Loan @ 4% = $2,339/mo.

$125,000 additional loan to existing $365,000 loan

July 2018 ROI on 4070 Hope w/2 rentals

$5,253 Monthly Rent (3.% increase)

- $2,339/mo. mortgage @ 4.0% 30 yr. fixed loan

- $150/mo. - Insurance

- $263/mo. - 5% maintenance

- $263/mo. - 5% vacancy

- $300/mo. - Property management

- $500/mo. - Property Tax

$1,438/mo. - Net monthly income

$17,256/yr. ROI = $1,438 x 12

$202,991 = July 2018 Invested $327,991 - $125,000

8.5% ROI = $17,256/$202,991

$125,000 back out of investment

Estimated Closing Costs

Total Bank of America fees

layer

$2,724

Third-party fees (may include seller-paid fees)

layer

$3,598

4070 Hope Ave 3/2 1520 sq ft - 11,250 sqft = $2600 Rental