Multifamily Investment Analysis
Harbor Twelve
2455 Pacific Avenue, Long Beach, CA 90806
Asking Price
$3,300,000
Units
12
Prepared By
Property Summary
APN
7205-014-021
Year Built
1972
Building SF
9,400
Lot SF
11,200
Parking
Surface
Units
12
Asking Price
$3,300,000
Price / Unit
$275,000
Unit Mix
| Type | Units | Avg SF | Avg Actual Rent | Avg Market Rent | Actual $/SF | Market $/SF |
|---|---|---|---|---|---|---|
| 1 Bed / 1 Bath | 4 | 650 | $1,736 | $1,950 | $2.67 | $3.00 |
| 2 Bed / 1 Bath | 8 | 850 | $2,254 | $2,495 | $2.65 | $2.94 |
| Total | 12 | 783 | $2,082 | $2,313 | $2.66 | $2.95 |
Rent Roll
| Unit | Type | SF | Actual Rent | Market Rent | Actual $/SF | Market $/SF |
|---|---|---|---|---|---|---|
| 1 | 1 Bed / 1 Bath | 650 | $1,695 | $1,950 | $2.61 | $3.00 |
| 2 | 1 Bed / 1 Bath | 650 | $1,750 | $1,950 | $2.69 | $3.00 |
| 3 | 1 Bed / 1 Bath | 650 | $1,850 | $1,950 | $2.85 | $3.00 |
| 4 | 1 Bed / 1 Bath | 650 | $1,650 | $1,950 | $2.54 | $3.00 |
| 5 | 2 Bed / 1 Bath | 850 | $2,195 | $2,495 | $2.58 | $2.94 |
| 6 | 2 Bed / 1 Bath | 850 | $2,295 | $2,495 | $2.70 | $2.94 |
| 7 | 2 Bed / 1 Bath | 850 | $2,100 | $2,495 | $2.47 | $2.94 |
| 8 | 2 Bed / 1 Bath | 850 | $2,350 | $2,495 | $2.76 | $2.94 |
| 9 | 2 Bed / 1 Bath | 850 | $2,250 | $2,495 | $2.65 | $2.94 |
| 10 | 2 Bed / 1 Bath | 850 | $2,150 | $2,495 | $2.53 | $2.94 |
| 11 | 2 Bed / 1 Bath | 850 | $2,295 | $2,495 | $2.70 | $2.94 |
| 12 | 2 Bed / 1 Bath | 850 | $2,400 | $2,495 | $2.82 | $2.94 |
| Total (12 units) | 9,400 | $24,980 | $27,760 | $2.66 | $2.95 | |
Key Metrics
| Metric | Current | Market |
|---|---|---|
| Cap Rate | 6.09% | 7.05% |
| GRM | 10.94 | 9.82 |
| Price per Unit | $275,000 | $275,000 |
| Price per SF | $351.06 | $351.06 |
Deal Score
1 hard gate tripped
- Income unreconcilable — Input confidence is 20% (gate at 30%).
A tripped gate is a deal-breaker on its own; the score below is secondary to it.
Grade
B
Score
78.6
of 100
Input confidence
20%
how well-sourced the inputs are
Scored on 5 of 7 components. Scored on A, B, E, G, H (65 of 100 design points); excluded C, D, M for missing data, and the remaining weights were scaled up to 100.
Executive summary
- Is the income real?
- Input confidence 20%; no independent rent evidence Expense ratio 30.6% is below the 1950–1985 band — expenses look understated.
- Is the price supported?
- No sale comparables on file — the asking price is unsupported by market evidence either way.
- Is there real upside?
- $33,360/yr of claimed rent gap. No independent source corroborates the claim.
- Does the deal survive?
- DSCR 1.39, cash-on-cash 4.3%, worst stressed DSCR 1.26, breakeven occupancy 76%.
Rollups
| Category | Points |
|---|---|
| Financial | 37.32 / 40 |
| Market Evidence | 0 / 0 |
| Physical & Records | 9.5 / 15 |
| Operations | 4.28 / 10 |
Components
| Component | Points | Why |
|---|---|---|
| A. DSCR | 19.6 / 20 | DSCR of 1.39 at current income and proposed terms. |
| B. Cash-on-Cash | 5.72 / 8 | Year-1 cash-on-cash return of 4.3%. |
| C. Price vs Market Evidence | — | Insufficient comparable data. |
| D. Rent Position & Upside | — | No independent rent evidence (no rent comps and no Rentometer statistics). |
| E. Expense Credibility | 4.28 / 10 | Expense ratio 30.6% is below the 1950–1985 band — expenses look understated. |
| G. Records & Physical Risk | 9.5 / 15 | Permits 4/6, distress 1.5/3, vintage 4/6. |
| H. Downside Resilience | 12 / 12 | Worst stressed DSCR 1.26, breakeven occupancy 76%, worst stressed cash flow $37,566. |
| M. Market quality | — | Not yet assessed in this version. |
What drives confidence
- Rent roll: The rent roll is still the untouched template.
- Price and comparables: Asking price is the template value and no comparables exist.
- Operating expenses: Expense lines are still the untouched template.
What would raise confidence
- Enter the actual rent roll.
- Enter the real asking price and pull sale comparables.
- Obtain trailing-12 operating statements.
- Run the county tax record lookup.
- Enter the real address, APN, unit count and vintage.
- Enter quoted loan terms from a lender.
Reasons to invest
- Downside Resilience: Worst stressed DSCR 1.26, breakeven occupancy 76%, worst stressed cash flow $37,566.
- DSCR: DSCR of 1.39 at current income and proposed terms.
Reasons not to invest
- Expense Credibility: Expense ratio 30.6% is below the 1950–1985 band — expenses look understated.
Expense Credibility is the weakest component. At 30.6%, expenses are $4,165 away from the bottom of the 1950–1985 band (32% of GOI).
The Altio Deal Score is an analytical summary of the data in this report. It is not investment advice, an appraisal, or a recommendation to buy or sell.
Income & Expense Proforma
| Line Item | Current | Market |
|---|---|---|
| Income | ||
| Scheduled Rental Income | $299,760 | $333,120 |
| Laundry Income | $1,800 | $1,800 |
| Parking Income | $0 | $1,200 |
| Scheduled Gross Income | $301,560 | $336,120 |
| Less Vacancy (4.0%) | ($12,062) | ($13,445) |
| Gross Operating Income | $289,498 | $322,675 |
| Expenses | ||
| Property Taxes | $40,760 | $40,760 |
| Management Fee | $14,475 | $16,134 |
| Insurance | $8,400 | $8,400 |
| Utilities | $14,100 | $14,100 |
| Landscape | $600 | $600 |
| Pest Control | $600 | $600 |
| Licenses & Fees | $540 | $540 |
| Repairs & Maintenance | $6,600 | $6,600 |
| Replacement Reserves | $2,400 | $2,400 |
| Total Expenses | $88,475 | $90,134 |
| Expenses per Unit | $7,373 | $7,511 |
| Expenses per SF | $9.41 | $9.59 |
| Expenses as % of GOI | 30.6% | 27.9% |
| Net Operating Income | $201,023 | $232,542 |
Financing
Loan Amount
$1,980,000
Down Payment
$1,320,000
Loan to Value
60.00%
Interest Rate
6.13%
Amortization
30 years
Monthly Payment
$12,031
Annual Debt Service
$144,368
Investment Returns
| Metric | Current | Market |
|---|---|---|
| Net Operating Income | $201,023 | $232,542 |
| Annual Debt Service | ($144,368) | ($144,368) |
| Cash Flow After Debt Service | $56,655 | $88,173 |
| DSCR | 1.39 | 1.61 |
| Cash-on-Cash Return | 4.29% | 6.68% |
| Year 1 Principal Reduction | $23,753 | $23,753 |
| Total Return ($) | $80,407 | $111,926 |
| Total Return (%) | 6.09% | 8.48% |
10-Year Cash Flow & Exit
| Year | SGI | GOI | Total Expenses | NOI | Debt Service | Cash Flow |
|---|---|---|---|---|---|---|
| 1 | $301,560 | $289,498 | $88,475 | $201,023 | ($144,368) | $56,655 |
| 2 | $312,115 | $296,509 | $90,471 | $206,037 | ($144,368) | $61,669 |
| 3 | $323,039 | $306,887 | $92,674 | $214,213 | ($144,368) | $69,845 |
| 4 | $334,345 | $317,628 | $94,932 | $222,696 | ($144,368) | $78,328 |
| 5 | $346,047 | $328,745 | $97,248 | $231,497 | ($144,368) | $87,129 |
| 6 | $358,159 | $340,251 | $99,623 | $240,628 | ($144,368) | $96,260 |
| 7 | $370,694 | $352,160 | $102,058 | $250,101 | ($144,368) | $105,733 |
| 8 | $383,669 | $364,485 | $104,556 | $259,929 | ($144,368) | $115,560 |
| 9 | $397,097 | $377,242 | $107,118 | $270,124 | ($144,368) | $125,755 |
| 10 | $410,995 | $390,446 | $109,746 | $280,699 | ($144,368) | $136,331 |
| Net Sale Proceeds (End of Year 10) | $2,673,893 | |||||
Exit Cap Rate
6.59%
Projected Sale Price
$4,424,866
Net Sale Proceeds
$2,673,893
Levered IRR
12.22%
Equity Multiple
2.73x
Loan Balance at Exit
$1,662,476
Total Cash Flow
$933,265
Down Payment
$1,320,000
Assumptions Appendix
| Assumption | Value |
|---|---|
| Asking Price | $3,300,000 |
| Year 1 Vacancy Rate | 4.0% |
| Stabilized Vacancy Rate (Years 2+) | 5.0% |
| Property Tax Rate | 1.1806% |
| Direct Assessments | $1,800 |
| Management Fee (% of GOI) | 5.0% |
| Rent Growth Rate | 3.5% |
| Other Income Growth Rate | 3.5% |
| Operating Expense Growth Rate | 2.5% |
| Property Tax Growth Rate | 2.0% |
| Hold Period | 10 years |
| Exit Cap Rate | Going-in cap rate (6.09%) + 0.50% spread = 6.59% |
| Cost of Sale | 2.0% |
| Loan to Value | 60.0% |
| Interest Rate | 6.13% |
| Amortization | 30 years |
| Loan Amount | $1,980,000 |
| Annual Debt Service | $144,368 |
Property taxes: reassessed at purchase to approximately the purchase price (price × county-derived rate + direct assessments); a supplemental tax bill bridges the closing year; grown at 2.0% per year thereafter (California — Prop 13).