Shanice ShalliesBrokered by Keller Williams Realty Las Vegas
Timpani Investment Analysis
4225 Timpani Drive, Las Vegas, NV 89110
Contact meThe Investment Case
Timpani offers a furnished five bedroom room rental at a lower asking price than the fourplex choices. The individual room model could provide more income than a conventional single tenant lease, but the result depends on actual collections, expenses, and whether the current use can continue.
The MLS rent field lists $4,200 per month, while the public comments say rent can exceed $4,200. Furniture and appliances are included. Review actual room agreements, occupancy, collections, turnover and utilities before treating the advertised amount as collected income.
Scenario Comparison
Current income uses the rents entered for this property. Other cases are labeled assumptions and can be changed as better information arrives.
| Measure | Advertised rent, all cash Assumption | Advertised rent, financed Assumption |
|---|---|---|
| Scheduled annual income | $50,400 | $50,400 |
| After vacancy | $43,344 | $45,360 |
| Operating costs and reserves | $23,918 | $24,079 |
| Net operating income | $19,426 | $21,281 |
| Cap rate | 4.2% | 4.6% |
| Monthly principal and interest | $0 | $2,554 |
| Monthly cash flow | $1,619 | $-781 |
| Cash invested | $484,667 | $140,492 |
| Annual cash on cash return | 4.0% | -6.7% |
| Debt coverage ratio | Pending verification | 0.69 |
| Break even occupancy | 44.1% | 110.2% |
What the Numbers Include
Advertised rent, all cash
Assumption- Purchase price
- 458900
- Down payment %
- 100
- Interest rate %
- 8.12
- Loan term in years
- 30
- Closing costs
- 13,767
- Upfront repairs
- 0
- Initial cash reserves
- 12,000
- Monthly scheduled rent
- 4,200
- Other monthly income
- 0
- Vacancy allowance %
- 14
- Annual taxes
- 1,802
- Annual insurance
- 1,020
- Monthly HOA or community fees
- 0
- Monthly owner utilities
- 460
- Monthly solar payment
- 230
- Other monthly costs
- 275
- Management % of collected income
- 8
- Maintenance % of scheduled income
- 7
- Capital reserve % of scheduled income
- 5
Illustrative all cash purchase using the MLS asking price and advertised $4,200 monthly rent. Vacancy and operating costs are modeled, not verified. Solar is leased, but its actual payment is unknown. Verify room leases, collections, utility bills, insurance, solar terms, and the cost of addressing unpermitted work.
Advertised rent, financed
Assumption- Purchase price
- 458900
- Down payment %
- 25
- Interest rate %
- 8.12
- Loan term in years
- 30
- Closing costs
- 13,767
- Upfront repairs
- 0
- Initial cash reserves
- 12,000
- Monthly scheduled rent
- 4,200
- Other monthly income
- 0
- Vacancy allowance %
- 10
- Annual taxes
- 1,802
- Annual insurance
- 1,020
- Monthly HOA or community fees
- 0
- Monthly owner utilities
- 460
- Monthly solar payment
- 230
- Other monthly costs
- 275
- Management % of collected income
- 8
- Maintenance % of scheduled income
- 7
- Capital reserve % of scheduled income
- 5
Uses the same income and operating assumptions as Scenario 1. Financing assumes 25% down, 8.125% interest, and a 30 year loan. These are sample terms, not a lender quote. Verify closing costs, solar payment, and any repairs or permit costs.
Strengths
Five bedrooms, four bathrooms, furnished operation, no HOA and an existing room rental model.
Tradeoffs
More intensive management than a standard rental. Leased solar and a garage conversion and additions described as unpermitted require close review.
Before Making a Decision
Request each room agreement, a rent ledger, expense history, permit records, solar contract, insurance quote and confirmation that the operation may continue under applicable rules.
Closing Read
The gross income makes this worth serious review. The decision rests on whether the existing operating model and expenses hold up under documentation.
Sources and Calculation Notes
MLS unit rents: Five furnished bedrooms are rented individually. Listed room rents range from $600 to $1,000 per month. Individual lease amounts and actual collections have not been verified.
The MLS rent field shows $4,200 per month. Public comments say monthly rent can exceed $4,200. Actual collections and operating expenses have not been verified.
Gross yield uses scheduled rent divided by purchase price. Net operating income subtracts vacancy, operating costs, management, maintenance and reserves before debt payments. Cash on cash return divides annual cash flow after debt by the cash invested. These figures use the inputs shown above and should be checked against leases, actual expenses and financing terms.
