Sold $1,325,000 - Investment Property
I am about to list an 8-unit apartment building in Glassell Park which, at purchase, will fetch approximately 8% cash on cash return. What really makes it interesting is that several of the units are below market rent; once those tenants leave, and you clean up the units and re-rent them, your cash on cash return will raise to about double what it is at purchase. Plus, it is in a location which is rapidly on the rise so your property value will continue to rise independent of the cash flow. This building, by the way, has been well taken care of by the current owner and shouldn’t have lots of headaches or hidden repair/maintenance expenses.
A lot of people prefer to buy a building with 8 units, over 2 or 3 or 4 units, based on the theory that if you get a vacancy, it is fairly innocuous as you still have 88% occupancy while you are working to fill the vacancy.
If you would like to buy such a property or know someone who might, get in touch with me and I will help you out.
