Sold $1,200,000 - 4-Plex
It seems it never rains, but pours—i.e., two great deals from me in the same week, after a long “drought!” This one is in “up and coming” Lincoln Heights, so you have to be willing and able to believe in Lincoln Heights. I do!
OK . . . specifics:
You pay $900K for the property. There are re-location fees involved, but I have already negotiated all that with the tenants; it will cost a total of $120K to get them out. Also, it will cost roughly $180K for renovations. That means you will be “all in” for $1.2 million, give or take. But once you have finished “re-positioning” it, you will have four 1100 sq ft, two-bed, two-bath units which will fetch $2500/mo each or a total of $10,000/mo.
If you hold the property, you will be “out of pocket” $300,000 and will be receiving $3500/mo cash flow or $42,000 annually. That comes to a whopping 14% cash-on-cash return.
If you sell the property, you will sell it for $1.55 million. After holding costs, closing costs, etc., you will net about $200k profit.
If anyone’s interested or wants to know more, call me right away.
