3116 Kings WAY, Las Vegas, NV 89102

About this home

This is a unique situation. The seller would like to discuss all creative options. The home is going to need substantial renovation. <br>Property taxes 4%–6%<br>Insurance 2%–4%<br>Utilities (if owner-paid) 10%–15%<br>Repairs & maintenance reserve 5%–10%<br>Vacancy & credit loss 5%–10%<br>Landscaping/pest control 1%–3%<br>Capital reserves (future HVAC, roof, appliances, etc.) 5%–10%<br>Total (self-managed) 25%–40%<br>Gross Potential Income<br>5 bedrooms + studio = $6,500/month<br>Annual = $78,000<br>Adjust for 90% occupancy<br>Effective Gross Income = about $70,200/year<br>Example expense budget (30%)<br>Expenses ˜ $21,000/year<br>Net Operating Income<br>Approximately $49,000/year<br><br>Using common investor cap rates:<br>Cap Rate Value<br>10% $490,000<br>8% $612,000<br>A one-third interest before any minority discount would be approximately:<br>$163,000 at a $490k valuation