Sold $1,749,000 - 4-Plex, Investment Property
Well, this one is a little bit unusual, since only two of the four units actually exist right now. The remaining two will be built by you. They are well into the permit process… you will have to take it the rest of the way, which should be only about 6 months give or take. The current rents will pretty much cover your holding costs in the meantime. Once you have completed the permit process, you will then build those remaining two units which will cost you somewhere around $550K to do. That means you will be – total – around $2.3 million between the purchase and the build. But for that price you will have four big beautiful units that will yield $18,000/mo gross. This also means you will have four units that will – at $2.3 million – be giving you about $6000/mo cash flow, or a ‘cash on cash return’ of approx 12%! And this in one of the most desirable locations for an investment property in all of L.A.!
To think of it another way, if you wanted to ‘flip’ this property rather than hold it, you really should be able to turn it around and sell it on the open market (with my help, of course ?)
for around $3 million, meaning you could clear as much as $400,000 profit.
The two units that actually exist right now are making close to $9,000/mo between them so the numbers I have laid out above are not a ‘pipe dream;’ this is what will actually happen! Since the units that remain to be built will, of course, be brand new construction, those rents will of course match or exceed what you are currently getting on the existing units.
OK, well there you go. If you want it or want more info, contact me anytime and I will help you out.
