Great Deal Alert – 5 units – Silver Lake

It has been a while since I have been inspired to send out a ‘great deal alert.’ Such is the nature of the multi-family market ever since interest rates have soared. So imagine my joy at the fact that I can send one now.

This one is not my listing. As is my habit, if I see a property that I believe has been ‘flying under the radar’ for whatever reason I bring it to the attention of my people (you are one of “my people” if you are receiving this,) so they have a chance to benefit from my sleuthing. This one is 4 units with a 5th bootleg unit that should easily be able to be made legal under the ADU Ordinances. So, just assume it is 5 units for the sake of argument. Two of them are being rented on the basis of mid-term rental and are getting $3500/mo on that basis. 4 of the 5 units have been nicely renovated with dishwasher, washer/dryer and good kitchen appliances (no AC.) They will easily fetch $3K/mo as traditional rentals. There is 8 car parking tandem style on the premises and it could even be as much as 10 car parking (it is 5 car parking non-tandem.) It is right next to the freeway (perhaps that is what is preventing it from selling but it really shouldn’t. The freeway doesn’t really impinge that much and it certainly isn’t preventing people from paying top dollar to live there.)

So, long story short if/when you rent the two units that are currently mid-term rentals (assuming you did not want to continue that model) you will rent them for $3000/mo. The other three are getting $1,050 (legacy tenant,) $3052 and $3500. That adds up to $13,602/mo. The owners are asking for $1,689,000. It is a great deal at that price. However, according to my conversation with the agent there is wiggle room in the price. So, let’s say – again, for the sake or argument – you get it for $1.6mm (could even be less.) At that price with 25% down at today’s interest rates, you will be cash flowing $3500/mo (!) with only $400,000 down.

Let’s get this done! Give me a call and I’ll help you get it.

best, Ken

818-237-6963