323 Kipps Lane (the “Property”) is a unique 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 square foot parcel of land with six total units across three separate duplexes. 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 occupant. 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 5.00% 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 $1,840 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. Assuming all six units are leased at market rent, the capitalization rate increases to approximately 6.16%. The Property is located on Green Valley Road directly between E. Natoma to the west and El Dorado Hills Blvd to the east. The Property is largely surrounded by the Browns Ravine Recreation Area thereby ensuring that the immediate area will not be developed with more housing or commercial buildings. According to Costar analytics, there are approximately 1,330 for-lease apartment units across 10 apartment complexes in El Dorado Hills. According to recent census data, there are approximately 17,300 single-family residential properties located in the same area; therefore, rental housing represents only 7% of the total housing inventory in El Dorado Hills. For comparison, recent Census data shows that for-lease housing represents approximately 49% of the total housing supply in the City of Sacramento and 31% of the total housing supply in Folsom, CA. As such, supply of rental housing in El Dorado Hills is far below that of neighboring cities. This is notable because the demand for rental housing continues to increase but there is a significant lack of supply in El Dorado Hills that is unlikely to increase anytime soon. From an ownership perspective, this lack of competitive supply will ensure consistent tenant demand and rent growth into the future.