Great Deal Alert
In a time when great deals in the income property world are so few and far between that they virtually don’t exist at all, here actually is one…. and it’s REALLY great.
I’m just going to give you the short, simple, broad strokes and if you want to know more, you can call me. As is stated up top, purchase price is $3mm. It is presently gettting $24K/mo in income. My mortgage broker will get a 25% down loan for you at around 7% to purchase it. There are 4 two bed one bath ADUs with plans already approved by the city, ready to break ground, converting 8 garages to these four ADUs. That will cost another $500K. But it will also fetch another $10,800 of income if you go Section 8 .
Bottom line, add the existing income to the ADU income and you get to $34K/mo. Whatever metric you like to use, you have a 10 unit that is in good (not great) shape, in a good location, that gives you crazy good return. You like to use cap rate? That’s 8.16!; You are a ‘GRM’ person? That’s 8.57! Oh, you simply want to know what the cash on cash return will be? That’s 15.15%. And it will be, after down payment and closing costs, approximately $950K ouf of your pocket, to receive $12,000 of cash flow every month, or $144,000 of cash flow annually.
If you want to buy it, or want to know more, call me and I will be happy to help you out.
Best, Ken Shapiro, Broker/Owner Silverwood Properties – 818-237-6963
