Sold $950,000 - Triplex
About a year ago I was introduced to a young dentist couple – a husband and wife who have a Periodontal practice in Beverly Hills. They are very successful but they have to work harder and for longer hours than they would like, and they decided to reorganize their lives so they wouldn’t have to do this forever. Long story short, they asked me to find them investment properties that would a) cash flow and b) have good upside.
As it happens, through my networking I was able to bring them off market properties that many people wouldn’t want, yet these properties satisfied the two above-mentioned criteria (i.e. cash flow and good upside.) The reason many others shied away from these properties is that the asking price was higher than the properties would appraise for. That was because Boyle Hts is an emerging market and there weren’t properties that would act as comparables to justify that price. Of course, my periodontist clients weren’t too concerned about that because they had the money to fill in the gap for the down payment on these purchases, plus they intended to pay them off quickly anyway.
Well, to cut a long story short, I have helped them acquire four properties in the past year – all of them in and around Boyle Hts. Each and every one of them are beautifully cash -flowing, low maintenance properties, and these clients couldn’t be happier. So, why am I telling you this story, you ask:
Because I have another property just like these four mentioned above, and my dentist clients are not currently in a position to buy it right now (they are busy saving up money for the next one, which they will have in a few months.) This one gorgeously satisfies the two criteria above (cash flows and has good upside.) The only difference between this one and the ones they bought (and this is a huge difference!) is that this one WILL appraise. And the reason it will appraise is because there are now good comparables, thanks to the transactions I have been doing in this neighborhood over the past few months. This means you can have the best of all worlds, i.e. cash flow, good upside AND low down payment (25%,) all rolled into one acquisition.
Cost for this one is $950K ($237,500 down payment) and it will gross about $7200/mo. This will mean $2000/mo cash flow after ALL expenses, including mortgage payment, property tax, insurance, utilities, gardner, maintenance, etc. The property is newly renovated and there really should be no particular renovations for you to spend money anytime in the near future.
OK, well a bit more long-winded than usual, but I wanted you to have the full perspective on this scene. If you want it or want more info, please let me know asap.
