925 W 84th Open File

The Open File · Live Underwriting

925 W 84th St
Los Angeles, CA 90044

7 units · Built 1915 · 4,620 SF building · 9,066 SF lot · Asking $1,525,000

7-Unit MultifamilyBuilt 19154 Units Vacant

Most offering memorandums hand you one pro forma and ask you to trust it. This one hands you the whole file. Every assumption below is a dial. Move them to your numbers and watch the deal survive or fall apart in front of you.

Sebastian Lopez
The Ave Agency · DRE #02239260

Cap Rate · Stabilized

6.47%

On the $1,525,000 ask

Cash Flow · Year 1

$21,797

After debt service

DSCR

1.28x

Lenders want 1.20x

Capital To Stabilize

All in, out of pocket

The Dials

Every field opens at Sebastian's underwriting. Change anything. Nothing is locked except the asking price.

Income

Seven units. Three occupied, four delivering vacant.

Market rent per unit Opens at the rent implied by the memorandum’s $172,800 gross $/mo

Current rent, occupied units Blended from the $38,436 current gross $/mo

Vacancy allowance Applied after stabilization %

Occupied units reach market rent at stabilization Sebastian's pro forma assumes all seven units at market. Turn this off to hold the three occupied units at their current rent and see what the deal looks like then.

Operating Expenses

Annual. Opens at the memorandum's expense schedule.

Property taxes $

Water & sewer $

Insurance $

Repairs & maintenance $

Utilities & other $

Reserves, admin & other Balance of the memorandum's $65,563 total $

Property management Percent of gross scheduled income %

Debt

Price is fixed at the $1,525,000 ask.

Down payment %

Interest rate %

Amortization yrs

Loan amount

Down payment

Monthly debt service

Annual debt service

Lease-Up

The part no memorandum shows you. This is where the money goes.

Months to stabilize To lease all four vacant units mo

Turn cost per vacant unit Paint, floors, appliances, make-ready on a 1915 building $

Closing costs Percent of purchase price %

Stabilized P&L

Recalculates on every change. At the opening settings this is the memorandum's income statement, line for line.

Income & Expenses	Annual	Per Unit

The Lap

Monthly cash position from close to stabilization. Hollow bars are months the property takes money out of your pocket.

Monthly cash flow from close through stabilization

Negative month, you fund the gap Positive month, the property pays for itself First positive month

Down Payment

Closing Costs

Unit Turns

Lease-Up Carry

Total Capital Required

Before the first dollar comes back

Lease-up carry is the deepest point of the cumulative cash deficit, not the sum of every bad month. It is the money you must have available, not the money you lose. Fixed expenses run from month one. Management is charged on collected rent. Debt service starts at close.

Against The Memorandum

How far your assumptions sit from the ones in the printed offering.

Cap Rate

Memorandum: 6.47%

Net Operating Income

Memorandum: $98,597

Year 1 Cash Flow

Memorandum: $21,797

Read

Send me your numbers

If your version of this file works, I want to see it. If it does not, I want to know which dial broke it. Either answer is worth a phone call. Copy the summary and send it over, or just call and we will go through it line by line.

Hablo español. Contesto mi propio teléfono.

(562) 396-6243 [email protected]

Your Assumptions