This weeks featured property is an REO that sold on December 12, 2008.

This property demonstrates the value of having cash and the ability to close quickly.

REO: Escrow opened after 3 days
        7 day escrow

Listed with: Ann Jochem/ Evergreen Realty

Shevy Akason and Associates has formed an exclusive partnership to work with buyers and pre-market REO's for the Jochem Team

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3050 S Bristol, Santa Ana 

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Cap rate=                      9.5%
Cash on cash return=     30.9%
Initial investment=         $24000
Purchase price= $119,900
Rent= $1500- $1600/month   $1600 was used for calculations for the purpose of this post
Potential Cash Flow= $500- $600+/month


Shevy Akason and Associates Principles for investments:

1) Cap rate of 8%+ using todays numbers, and not less than 5.5% using worst case scenarios
2) We use 5% vacancy as todays baseline, and 10% vacancy to calculate worst case scenario
3) We use todays rental numbers to calculate expected rent and account for rental deprecation of 12.5% to account for worst case scenario
4) We use an interest rate of 5% for those that are buying as a primary residence and 6.5% for investors
5) We account for lost income in downpayment of 2%
6) We Calculate 1%/year of the purchase price for maintenance reserves

Based upon todays numbers= 9.5% cap rate, cash on cash return of 30.9%

Monthly Costs

HOA=               $277
Taxes=             $125 (Estimated)
Maintenance=   $100
Insurance=       $71
                       $573*12=             $6876*

*If you hire a property manager your expenses will be higher


Today's market rent= $1600*12=  $19,200-5% vacancy= $18240

Today's Cap rate= $18,240-  $6876=  $11,364/ $119,900= 9.5%

Total cost of ownership using IHB calculator= $901.49*12= $10,817.88

 $18240 (Gross income)- $10818 (total cost of ownership) = $7422/ $24,000(initial cash investment)= 30.9%

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Shevy Akason

Residential

Thu, Mar 26, 2009 04:47 PM

Ref: 1

Condominium

Attached

RES

Closed Sale

3050 S Bristol St 15H

Santa Ana (SA)

Price $119,900

	Santa Ana South of First (69)				Zip 92704-		TGNO 859D1
	Orange County (OR)		XSTS Segerstrom/W. Bristol				Aerial Map
	P666937		Media: 1	Builder Tract Other (OTHR)
	Style Other
	Bed 2		Model (0)
	Baths 2		Stories One Level		Floor				Floor 1 of 1
	View No View				HOA Dues $ 277 + $ 0
	ASqFt 989   Assessor		YrBlt 1970  Assessor		Land Fee
	ALotSize 0				Dim	Acres
	Prkng
	Garage, # cars 1	Remotes	# Uncovered Spaces	Carport	# Garages	RV Access	Range Price Listing: No

Spaious two bedroom in South Coast Metro.. Very nice gated community. The Association pays for insurance, gas water trash and cable. GREAT LOCATION CLOSE TO AL SHOPPING...

Directions SEGERSTROM AND BRISTOL

Special Conditions: REO/Lender-Owned

Contact Information

This Report was created by:
Agent: Shevy Akason	Phone: 949-769-1599	Mobile Ph:	Pager:
Office: Evergreen Realty	Fax: 949-387-7041	Email: shevy.akason@evergreenrealty.net	Website: http://www.evergreenrealty.net	Blog WSite  http://orangecountycaliforniarealestate.blogspot.com/

Listing Activity

LP/SqFt $121.23	Orig Price $ 119,900	Prev Price $	Current Price $119,900
Sold Price $ 119,900	SP/SqFt $ 121.23	COE/End Date: 12/12/2008

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RentVsOwnulator™

Purchase Price	$
Down Payment	%	$
Interest Rate	%
Number of Years	years
Mortgage	$
Monthly Payment	$
Property Tax	%	$
Special Taxes and Levies	%	$
Homeowners Insurance	%	$
Homeowners Association Fees	$	$
Other (ex. Private Mortgage Ins)	$	$
Maintenance and Replacement Reserves	%	$
Monthly Cash Cost	$
Monthly Interest for 1st Payment	$
Tax Savings (% of Interest and Property Tax)	%	$
Equity Hidden in Payment	$
Lost Income to Down Payment	%	$
Total Cost of Ownership	$

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Shevy Akason and Associates
"We're not Just Real Estate agents, we're real estate consultants"
Shevy Akason | Realtor | Evergreen Realty
 Phone 949.769.1599 | Fax 949.753.0671
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