436 S. 6TH Street

San Jose, CA 95112

Brian Raynoha Apartment Property Advisor

Cell 408.886.8920 brian@delave.net DRE # 01798711

All Two Bedrooms

Upgraded double pane windows

Offering Summary

Price $ 800,000Number of Units 5Price Per Unit $ 160,000Price Per SQFT $ 203CAP Rate 5.62%CAP Rate Market 6.07%GRM 11.11GRM Pro Forma 10.54Gross Living Area 3,943 SQFTLot Size 4,792 SQFTParking Ratio 1:1Year Built 1962APN# 467-48-045Zoning R-3Landscape MatureTopography Flat

Next to San Jose State University, restaurants, shopping, and lots of new

developments

Stable Tenant Base

Practically next door to San Jose State University this turn key well maintained 5-unit apartment complex has spacious 2 bedroom apartments and is located at 436 S. 6th Street. Featuring upgraded windows and a modern looking exterior this property is a great investment.

Tower Hall at SJSU

Construction & utility Breakdown

Water Landlord

Phone Tenant

Electric Tenant

Gas Tenant

Individually Metered for Gas & Electric

Utilities

ConstructionFoundation Crawl Space with a concrete

perimeter

Framing Wood

Exterior Stucco

Roof Low Sloped- Modified Bitumen

Hot Water Heaters 2 water heaters

Unit Mix and Site Description

Unit Mix2 bedroom 1 bathroom 5

Site Description

Number of Units 5

Number of Buildings 1

Number of Stories 2

Year Built 1962

Rentable Square Fee 3,943 SQFT

Lot Size 4,792 SQFT

Parking 5 spaces and 2 garages

Parking ratio 1.4

Landscaping Paved- low maintenance

Topography Flat

Rent Roll June 2010

Unit# Moved in Type Deposit Actual Market

1 8/1/2003 2bd/1bth 700 1188 1495

2 3/1/2002 2bd/1bth 500 1166 1495

3 7/1/1996 2bd/1bth 300 1188 1495

4 7/1/1996 2bd/1bth 1000 1188 1495

5 6/1/2007 2bd/1bth 1250 1325 1495

  Total $ 4,395.00 $ 6,055.00 $ 7,475.00

Income & Expense Statement

  Current Market

Gross Potential Rent $ 72,660 $ 75,000

Laundry - $ 900

Gross Potential Income $ 72,660 $ 75,900

Vacancy (5%) $ (3,633) $ (3,750)

EFFECTIVE GROSS INCOME $ 69,027 $ 72,150

Expenses

Landscaping 0 0

General Maintenance & Repairs 596 2,500

Offsite Management 5% 3,451 3,608

Gas & Electric 1,676 1,676

Garbage 1,836 1,836

Water 1,508 1,508

Insurance 1,138 1,138

Occupancy Permits 150 150

Property Taxes 10,263 10,263

Special assessment tax 1,371 1,371

Total Expenses $ 21,989 $ 24,049

Expenses per SF $ 1.49 $ 1.63

% of EGI 32% 33%

Net Income $ 47,038 $ 48,101

Notes on Income and Expense Statement

Buyer is advised to conduct his own investigation on the market to establish market rents and vacancy factor. Market Income is not intended to be representation by Seller or Broker

Current income is June 2010 monthly income annualized. The actual Income for 2009 was $ 4,775 Higher (76,799)

Current Expenses are actual 2009 expenses except for: taxes, Management, maintenance and insurance expense

Current Owner manages the building and do not incur a management fee from a 3rd party. The number used for management is an estimate. Buyer should research their cost for managing the property and not rely on this estimate.

New Estimated taxes is the list price multipliedby 1.2074%

Current permit fees were $394.70, some of the expenses in the category were one time not reoccurring expenses. The Occupancy permit fee for 2008 & YTD 20010 are $ 150

Insurance was quoted by Jerry D. Ross,Willow Glen Insurance Agency408-369-9090Actual Insurance price included other properties.

Current Maintenances for 2009 was $8,728. The vast majority was not maintenance, but capital improvements on the garages and new laundry room. All work done with permits. The actual money spent on maintenance is estimated to be below $ 2,500

Market numbers include Laundry, The new laundry room has been installed for the tenants. The owner has not installed the machines at this time.

This information is deemed accurate but not guaranteed by broker or Seller.

Contact Information Brian Raynoha M.B.A

Apartment Property Advisor Cell 858.869.9290

braynoha@gmail.com DRE # 01798711

This information contained herein is not a substitute for a through due diligence investigation. Brian Raynoha nor the Seller make no warranty with respect to future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical conditions of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenants plans or intentions to continue its occupancy of the subject property. All Potential buyers must take appropriate measures to verify all of the information set forth herein. The information is deemed reliable and accurate, but we make no representations or warranties expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risks for any inaccuracies.

Make offers subject to inspection. Please contact Brian Raynoha for more information.