Sold $610,000 - Duplex
Here is an example of a property that just may “fly under the radar.” It is on the MLS but it is being marketed as a 4-bed, 2-bath duplex, 1682 sq ft. In actuality, it is a 5-bed, 3-bath duplex, about 2200 sq ft. Granted, 600 sq ft of that is unpermitted, but (a) a permit is likely easy to obtain and (b) being unpermitted may not be a big issue.
Another point is it is going to be delivered vacant which is unclear in the marketing of this property. This means one can charge current market rents. The property is on a very interesting Lincoln Heights street and in a desirable location. The property also lends itself to being a good owner/user opportunity, i.e., owner lives in large front house and rents out the rear.
If one were to have both units as rentals, at current asking price, here’s how the numbers could potentially go: $150K down payment with, say, $25K of fix up — that is $175K cash out of pocket. $5K/mo income which will equal $1,600/mo cash flow, or about $19,500 annual net income. This equals about 11% cash on cash return.
Or, if one lived in the front unit and rented out the back, they would only be out of pocket about $900/mo including property tax and insurance.
If you want more info on this one, or want to make a run at it, give me a call and I’ll help you out.
