323 Kipps Lane represents a rare opportunity to acquire a strong multifamily asset in the Foothills of El Dorado Hills. Situated right off Green Valley Road and a stone’s throw from Folsom Lake, the Property consists of an approximately 33,977 SF parcel of land with six total units across three separate duplexes spaciously residing on the lot. All duplexes underwent extensive renovations in 2014, and five of the six units are currently leased and generating rental income. The sixth unit is being left vacant to be available for showings, or for an owner to occupy. All units are 2-bedroom and 1-bathroom layouts with LVP floors, updated finishes and appliances, a garage, and yard space.

Scheduled annual income for the property is $111,000 and would increase to $138,000 in the event the remaining vacant unit is leased for $2,250 per month, which is the current rent rate for the neighboring unit in the duplex. Estimated annual expenses total $46,000, equating to an approximate net operating income of $92,000 with full occupancy representing a 5% capitalization rate. Of the five leased units, one unit is currently leased for $2,250 per month, while the remaining four are being rented at an average rent of approximately $1,740 per month. Given all units are nearly identical, it’s assumed that all six units could be leased for $2,250 per month which is about 18% higher than the current average rent at the Property. With all six units leased at market rent, the capitalization rate increases to approximately 6.16%.