East Hollywood Fourplex -...
Transcript of East Hollywood Fourplex -...
Each office is independently owned and operated.
Sponsored By:
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East Hollywood Fourplex 1710 N 17 Ave | Hollywood, FL 33020
JOHN DEMARCO, [email protected]
Great income opportunity, huge earnings potential➢
Tropical paradise in East Hollywood A+++ location➢
Fully renovated property➢
Booked for several months from now➢
9.48% capitalization rate➢
RE/MAX 5 STAR REALTY4151 Hollywood BlvdHollywood, FL 33020(954) 361-0000
INVESTMENT DETAILS1710 N 17 Ave | Hollywood, FL 33020
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
Analysis
Analysis Date October 2017
Property
Property East Hollywood Fourplex
Property Address 1710 N 17 AveHollywood, FL 33020
Year Built 1970
Financial Information
Down Payment $194,700
Closing Costs $4,700
Purchase Information
Property Type MultiFamily
Purchase Price $625,000
Units 4
Total Rentable Sq. Ft. 3,053
Loans
Type Debt Term Amortization Rate Payment LO Costs
Fixed $454,300 20 years 20 years 4.0% $2,753 $4,543
Income & Expenses
Gross Operating Income $87,174
Monthly GOI $7,265
Total Annual Expenses ($27,915)
Monthly Expenses ($2,326)
Contact Information
John DeMarco, ACP
954-678-8733
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EXECUTIVE SUMMARY1710 N 17 Ave | Hollywood, FL 33020
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
Acquisition Costs
Purchase Price, Points and Closing Costs $634,243
Investment - Cash $203,943
First Loan $454,300
Investment Information
Purchase Price $625,000
Price per Unit $156,250
Price per Sq. Ft. $204.72
Income per Unit $25,050
Expenses per Unit ($6,979)
Income, Expenses & Cash Flow
Gross Scheduled Income $100,200
Total Vacancy and Credits ($13,026)
Operating Expenses ($27,915)
Net Operating Income $59,259
Debt Service ($33,036)
Cash Flow Before Taxes $26,223
Financial Indicators
Cash on Cash Return Before Taxes 12.86%
Debt Coverage Ratio 1.79
Capitalization Rate 9.48%
Gross Rent Multiplier 6.24
Gross Income / Square Feet $32.82
Gross Expenses / Square Feet ($9.14)
Operating Expense Ratio 32.02%
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PROPERTY DESCRIPTION1710 N 17 Ave | Hollywood, FL 33020
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
Great 4 unit building located in desirable east Hollywood Florida. Excellent location only 1 mile from famousHollywood Beach and closed proximity to Downtown Hollywood. Property is currently being run and managed primarilyas an AirBnB weekly / monthly rental property. Fully renovated property and exquisite landscaping make it a greatinvestment opportunity. Beautiful private yard with fire pit, hot tub and a zen garden and much more. The property iscurrently booked with reservation 2 years from now. Tenants enjoy a lounge on the back yard which is truly a tropicalparadise.
The units consist of 2 large 2 bedrooms and 2 studios.
This property is currently grossing $100,200 per year, netting $59,259. This NOI provides an investor with a verystrong 9.48% capitalization rate.
Property is easy to show for all appointments call listing agent in advance.
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PROPERTY PHOTOS1710 N 17 Ave | Hollywood, FL 33020
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
Unit 1 Living Room Unit 1 Dining Room
Unit 3 Bedroom Unit 3 Bedroom
Unit 2 Dining Area Unit 2 Kitchen
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1710 N 17 Ave | Hollywood, FL 33020
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
Reviews (216) Reviews From Guests
Joshua: Amazing hosts. Great house, super comfortable and cozy. 10 minutes from the beach, 15 minutes from FLL and about 45 minutes from Miami. Definitely recommend. From Philadelphia, PA · June 2017 · Serghei: We will definitely stay again!!!! From Watertown, MA · May 2017 · Olga: Our first Airbnb experience was awesome! We loved the apartment (for 4 people); it was very neat, spacious, and quiet. The location was great - we loved how close it was to Hollywood beach! All needed accessories were provided. The garden outside was beautiful, and the grill was a great addition! I would definitely stay here again in the future. The only downside we found was the WiFi - with 4 people using phones/computers, it was pretty slow. Otherwise, everything was wonderful and convenient. Thank you for showing us South Florida's best! :)
Response from Sandy & Ed: Thank you Olga for your awsome review. I want to inform you that we upgraded our WiFi router so it can handle multiple users. We do provide Comcast high speed Internet and it is working great. Ed and Sandy From Columbus, OH · May 2017 ·
Aiko: Sandy and Ed were very good with communicating, making sure that I didn't have any questions or there is no issues. There were very kind and flexible. The place is clean, quiet, a little small but has everything you need,
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1710 N 17 Ave | Hollywood, FL 33020
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
and the garden is just beautiful. Grocery stores were close by, and even whole food was not too far that I could get some good bread and other items. Tarks, a local oyster bar(my favorite) is around the corner, and the beach is 5 mins away. We had such a wonderful time staying at their place. From Baltimore, MD · May 2017 · Richard: Very quiet and clean. Lots of privacy. Low key. Will def rent again. From Miami, FL · May 2017 · Javier: Great place! Located near everything you need, was not disappointed whatsoever! From Clermont, FL · May 2017 · Collin: This place is amazing, I'll definitely come back. Very homey and comfortable Lore & Gio: My husband and I spent a weekend at Sandy and Ed's place. The place was clean, good A/C and WiFi signal. Great amenities. We had a romantic dinner at their beautiful patio which make us feel we were at a bistro in Paris. The place had everything we need and they welcomed our doggie Luna. Alan: The location was very quiet and safe. It was close within 10 miles of Fort Lauderdale and Pompano Beach, where we spent most of our time. The neighborhood was nice and the outdoor space is welcoming. Highly recommend to anyone wishing to stay in this area! Ted: This is a really cute place, an oasis in Hollywood. And it's equipped with everything from crockpot and blender in the kitchen down to Q-tips and cotton balls in the bathrooms. The rooms are spacious comfortable and well organized. There is storage and closet space. It's very private once inside the private patios. It's convenient to beaches, shopping, restaurants, jai alai, thoroughbred racing, and Casino's. This is a great value and we will definitely be back! Thanks so much Ed and Sandy for this great Airbnb. We loved it! December 2016
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MAPS AND AERIALS1710 N 17 Ave | Hollywood, FL 33020
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
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DEMOGRAPHICS1710 N 17 Ave | Hollywood, FL 33020
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
Population 1 Mile 3 Mile 5 Mile
Male 10,054 (50.73 %) 55,258 (48.90 %) 118,615 (48.43 %)
Female 9,763 (49.27 %) 57,746 (51.10 %) 126,290 (51.57 %)
Total Population 19,817 113,004 244,905
Age Breakdown 1 Mile 3 Mile 5 Mile
Ages 0-4 791 (3.99 %) 4,791 (4.24 %) 11,275 (4.60 %)
Ages 5-9 1,057 (5.33 %) 6,110 (5.41 %) 14,497 (5.92 %)
Ages 10-14 977 (4.93 %) 5,692 (5.04 %) 13,724 (5.92 %)
Ages 15-19 883 (4.46 %) 5,309 (4.70 %) 13,087 (5.34 %)
Ages 20-24 907 (4.58 %) 5,310 (4.70 %) 12,934 (5.28 %)
Ages 25-29 953 (4.81 %) 5,455 (4.83 %) 12,896 (5.27 %)
Ages 30-34 1,091 (5.51 %) 5,938 (5.25 %) 13,284 (5.42 %)
Ages 35-39 1,320 (6.66 %) 6,832 (6.05 %) 14,603 (5.96 %)
Ages 40-44 1,574 (7.94 %) 7,889 (6.98 %) 16,436 (6.71 %)
Ages 45-49 1,767 (8.92 %) 8,762 (7.75 %) 17,993 (7.35 %)
Ages 50-54 1,765 (8.91 %) 8,736 (7.73 %) 17,936 (7.32 %)
Ages 55-59 1,596 (8.05 %) 8,286 (7.33 %) 16,923 (6.91 %)
Ages 60-64 1,326 (6.69 %) 7,428 (6.57 %) 15,214 (6.21 %)
Ages 65-69 1,086 (5.48 %) 6,409 (5.67 %) 13,085 (5.34 %)
Ages 70-74 823 (4.15 %) 5,370 (4.75 %) 11,036 (4.51 %)
Ages 75-79 614 (3.10 %) 4,407 (3.90 %) 9,083 (3.71 %)
Ages 80-84 412 (2.08 %) 3,369 (2.98 %) 7,022 (2.87 %)
Ages 85+ 875 (4.42 %) 6,911 (6.12 %) 13,877 (5.67 %)
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DEMOGRAPHICS1710 N 17 Ave | Hollywood, FL 33020
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
Household Income 1 Mile 3 Mile 5 Mile
Median Income $32,205 $47,141 $46,906
Less than $10,000 958 4,511 9,397
$10,000 -$14,999 648 3,276 6,248
$15,000 - $19,999 724 3,972 6,819
$20,000 -$24,999 790 2,858 6,451
$25,000 - $29,999 730 3,909 7,087
$30,000 - $34,999 626 2,909 6,240
$35,000 - $39,999 585 2,767 5,765
$40,000 - $44,999 585 3,000 5,756
$45,000 - $49,999 417 2,398 4,939
$50,000 - $59,999 652 4,377 8,352
$60,000 - $74,999 829 4,676 10,069
$75,000 - $99,999 568 5,313 11,000
$100,000 - $124,999 636 3,388 6,411
$125,000 - $149,999 180 1,627 3,483
$150,000 - $199,999 154 1,509 3,269
Greater than $200,000 192 1,734 4,351
Housing 1 Mile 3 Mile 5 Mile
Housing Units 11,824 70,207 139,409
Occupied Units 9,727 54,146 107,915
Owner Occupied Units 4,249 28,677 63,774
Renter Occupied Units 5,478 25,469 44,141
Vacant Units 2,097 16,061 31,494
Race Demographics 1 Mile 3 Mile 5 Mile
Population Non Hispanic White 15,512 84,058 177,780
Population Black 3,258 22,251 50,549
Population Am In/Ak Nat 6 44 467
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UNIT MIX REPORT1710 N 17 Ave | Hollywood, FL 33020
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly
1 Residential 2/2 1000 $2,500 $2,500 $2,500 $2,5001 Studio 600 $1,800 $1,800 $1,800 $1,8001 Residential 2/1 1000 $2,400 $2,400 $2,400 $2,4001 Studio 453 $1,650 $1,650 $1,650 $1,6504 3,053 $8,350 $8,350
UNIT MIX UNIT MIX SQUARE FEET
● Residential 2/2
● Studio
● Residential 2/1
● Studio
● Residential 2/2
● Studio
● Residential 2/1
● Studio
UNIT MIX INCOME UNIT MIX MARKET INCOME
● Residential 2/2
● Studio
● Residential 2/1
● Studio
● Residential 2/2
● Studio
● Residential 2/1
● Studio
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DETAILED GENERAL EXPENSES1710 N 17 Ave | Hollywood, FL 33020
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Description Year 1 Year 2 Year 3 Year 4 Year 5
Total Expenses ($27,915) ($28,175) ($28,437) ($28,702) ($28,969)
Accounting ($750) ($750) ($750) ($750) ($750)
Advertising ($3,000) ($3,030) ($3,060) ($3,091) ($3,122)
Building Insurance ($1,700) ($1,717) ($1,734) ($1,752) ($1,769)
General Supplies ($1,200) ($1,212) ($1,224) ($1,236) ($1,249)
Maintenance ($3,600) ($3,636) ($3,672) ($3,709) ($3,746)
Management Fees ($8,000) ($8,080) ($8,161) ($8,242) ($8,325)
Taxes - Real Estate ($2,585) ($2,611) ($2,637) ($2,663) ($2,690)
Trash Removal ($1,200) ($1,200) ($1,200) ($1,200) ($1,200)
Utilities - Water ($2,040) ($2,060) ($2,081) ($2,102) ($2,123)
Utility - Electricity ($3,000) ($3,030) ($3,060) ($3,091) ($3,122)
Utility - Landscaping ($840) ($848) ($857) ($865) ($874)
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CUMULATIVE WEALTH ANALYSIS1710 N 17 Ave | Hollywood, FL 33020
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Year 1 2 3 4 5
$29,000
$58,000
$87,000
$116,000
$145,000
$174,000
$203,000
$232,000
$261,000
$290,000
Legend
Equity (loan reduction) Equity (appreciation) CASH FLOW (a/t)
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CASH FLOW ANALYSIS1710 N 17 Ave | Hollywood, FL 33020
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Description Year 1 Year 2 Year 3 Year 4 Year 5
GROSS SCHEDULED INCOME $100,200 $105,210 $110,471 $115,994 $121,794
Turnover Vacancy ($13,026) ($13,677) ($14,361) ($15,079) ($15,833)
Total Operating Expenses ($27,915) ($28,175) ($28,437) ($28,702) ($28,969)
NET OPERATING INCOME $59,259 $63,358 $67,672 $72,213 $76,991
Loan Payment ($33,036) ($33,036) ($33,036) ($33,036) ($33,036)
NET CASH FLOW (b/t) $26,223 $30,322 $34,637 $39,177 $43,956
Cash On Cash Return b/t 12.86% 14.87% 16.98% 19.21% 21.55%
* b/t = before taxes;a/t = after taxes
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FINANCIAL INDICATORS1710 N 17 Ave | Hollywood, FL 33020
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Description Year 1 Year 2 Year 3 Year 4 Year 5
Gross Rent Multiplier 6.48 6.17 5.87 5.60 5.33
Capitalization Rate 9.48% 10.14% 10.83% 11.55% 12.32%
Cash On Cash Return b/t 12.86% 14.87% 16.98% 19.21% 21.55%
Cash On Cash Return a/t 12.86% 14.87% 16.98% 19.21% 21.55%
Debt Coverage Ratio 1.79 1.92 2.05 2.19 2.33
Gross Income per Sq. Ft. $32.82 $34.46 $36.18 $37.99 $39.89
Expenses per Sq. Ft. ($9.14) ($9.23) ($9.31) ($9.40) ($9.49)
Net Income Multiplier 10.95 10.24 9.59 8.99 8.43
Operating Expense Ratio 32.02% 30.78% 29.59% 28.44% 27.34%
Loan To Value Ratio 67.67% 65.24% 62.71% 60.08% 57.35%
* b/t = before taxes; a/t = after taxes
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EQUITY VS. DEBT1710 N 17 Ave | Hollywood, FL 33020
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Year 1 2 3 4 5
$44,000
$88,000
$132,000
$176,000
$220,000
$264,000
$308,000
$352,000
$396,000
$440,000
Legend
Equity Loan Principal Balance
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INVESTMENT RETURN ANALYSIS1710 N 17 Ave | Hollywood, FL 33020
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Description Year 1 Year 2 Year 3 Year 4 Year 5
Cash Flow - To Date $26,223 $56,546 $91,183 $130,360 $174,316
Net Resale Proceeds $204,354 $214,386 $225,060 $236,402 $248,677
Invested Capital ($203,943) ($203,943) ($203,943) ($203,943) ($203,943)
Net Return on Investment $26,635 $66,989 $112,300 $162,819 $219,050
Internal Rate of Return 13.06% 16.16% 17.59% 18.56% 19.33%
Modified IRR 13.06% 15.26% 15.75% 15.80% 15.71%
NPV (cash flow + reversion) $32,120 $78,198 $129,233 $185,476 $247,193
PV (NOI + reversion) $708,259 $771,617 $839,289 $911,503 $988,494
* a/t = after taxes; Modified IRR = Modified Internal Rate of Return; PV = Present Value; NPV = Net Present Value; NOI = Net Operating Income
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OPERATING INCOME ANALYSIS1710 N 17 Ave | Hollywood, FL 33020
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.
Year 1 2 3 4 5
$11,000
$22,000
$33,000
$44,000
$55,000
$66,000
$77,000
$88,000
$99,000
$110,000
Legend
GROSS OPERATING INCOME NET OPERATING INCOME NET CASH FLOW (b/t)
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LOCATION MAP1710 N 17 Ave | Hollywood, FL 33020
The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.
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2
Advantages of Hollywood, Florida
• The Clean Beaches Council, a
national coastal group in
Washington DC, has presented its
first-ever "Most Innovative Beach"
awards to Broward County’s
Hollywood Beach.
• Hollywood Beach is among the first
in Florida to be designated Blue
Wave Beaches, a distinction that
places them among the nations
cleanest, safest and most user-
friendly beaches.
• Characterized by quaint sidewalk
cafés, brick-lined walks, and six
blocks of unique boutiques, shops,
art galleries and dozens of
excellent restaurants along
Hollywood Boulevard and Harrison
Street, this pedestrian-friendly
environment is the perfect place to
enjoy South Florida.
• Hollywood Beach features a one-
of-a-kind oceanfront promenade
called the Hollywood Beach
Boardwalk that stretches nearly
two and a half miles along the
Atlantic.
• The Hollywood Trolley provides a
public transportation service to
improve mobility, enhance the
visitor experience and ease
parking demand and traffic
congestion.
• The easy ocean access and
village-like feel make this a can't
miss destination with numerous
highly-rated restaurants, small
inns and hotels.
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Suspendisse elementum rhoncus velit. Nulla turpis
metus, faucibus nec, dignissim at, cursus in,
tortor. Hollywood, Florida is ideally located between two major
international airports. The Fort Lauderdale/Hollywood
International Airport is just a short 10-minute drive, and
the Miami International Airport is located just 30
minutes South. Hollywood is a popular driving
destination, which is easily accessible from several major
Interstates and highways such as I-95, I-75 and Florida’s
Turnpike. Port Everglades, the world’s premier cruise
port is located just 10 minutes away, serves nearly 20
cruise lines. Additionally, the Hollywood Trolley makes
getting around Hollywood Beach and Downtown a
breeze. Visitors and residents can board the trolley at
more than a dozen convenient locations near Hollywood's
major activity and parking areas. Hollywood stands at
the most advantageous location, where everything is
located no more than a 10-minute drive. According to
the United States Census Bureau, the city has a total
area of 30.8 square miles (80 km2), of which 27.34
square miles (71 km2) is land and 3.46 square miles
(9 km2) is water (11.23%). Hollywood is located in
southeastern Broward County, and includes
approximately 5 to 6 miles of Atlantic Ocean beach,
interrupted briefly by a portion deeded to Dania Beach.
Location
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Population/Demographics
The city's age demographic shows a mixed population
with 21.3% under the age of 18, 7.0% from 18 to 24,
31.3% from 25 to 44, 23.1% from 45 to 64, and 17.3%
who were 65 years of age or older. The median age was
39 years. For every 100 females there were 94.1 males.
For every 100 women age 18 and over, there were 90.9
men. As of 2000, Hollywood had the seventy-fifth highest
percentage of Cuban residents in the U.S., at 4.23% of
the city's population,[17] and the sixty-fifth highest
percentage of Colombian residents in the US, at 2.26%
of the city's population. It also had the fifty-seventh
highest percentage of Peruvian residents in the US, at
1.05% of the city's population and the twentieth highest
percentage of Romanian residents in the US, at 1.1% of
the its population. As of 2000, speakers of English as
a first language accounted for 66.94% of
residents, Spanish accounted for 21.62%, French made
up 2.06%, French Creole consisted of 1.32% of the
population. The median income for a household in the
city was $40,714, and the median income for a family
was $55,849.
5
The Art and Culture Center of
Hollywood presents contemporary
gallery exhibitions, live stage
performances and high-quality
education programs for adults and
children. The Center fosters a
creative environment where new and
challenging work can flourish
through programs that reflect the
highest standards of artistry and
diversity. The Downtown Hollywood
Mural Project’s mission is to
beautify and add culture the
Downtown area. You can often watch
the creation of a new mural during
the Third Saturday ArtWalk.
At Hollywood’s Boardwalk you can
find unique shopping, beachfront
restaurants and bars in addition
to yearlong activities and live
music. With oceanfront hotels
and resorts, you will find the
perfect accommodation for a
weekend getaway or staycation.
he Hollywood Beach Boardwalk,
a 2.5-mile-long pedestrian
promenade, bustles with joggers,
skaters, cyclists and old-
fashioned charm, a mere four
steps from the beach's western
edge.
Downtown Hollywood has various
options for any budget and taste.
The growing arts and culture hub
includes grand murals, art
installments, galleries and the
unique ArtsPark at Young Circle,
which hosts weekly activities for
families, foodies, art enthusiasts,
locals and visitors alike. It
includes a 10-acre family friendly
park, outdoor musical
performances, festivals, visual
art, fountains, free glass blowing
demonstrations, beautiful
landscapes, sidewalk cafes in the
area.
Hollywood Attractions
The Hollywood Community Redevelopment Center
Hollywood CRA: Our Mission
THE MISSION OF THE HOLLYWOOD CRA IS TO ELIMINATE SLUMS AND BLIGHT BY:
1) Stimulating private investment and economic growth
2) Upgrading the public infrastructure and public spaces
3) Mobilizing community stakeholders 4) Partnering with the City of Hollywood and Other
Government Agencies
5) Providing leadership for the CRA Districts
For more information on the city of Hollywood, please visit:
• http://www.floridashollywood.org/default.aspx
• http://www.hollywoodcra.org/index.aspx?nid=94
• http://hollywoodchamber.org/