Sold $1,700,000 - 4-Plex
Real estate investing is always a balancing act between immediate cash flow and future upside. Some investors are all about immediate cash flow; they are quite willing to tolerate having a property with lots of deferred maintenance and/or is in a marginal or even bad location . . . as long as it gives good cash flow. At the other end of the spectrum, we have investors who don’t care about immediate cash flow at all; they are OK with the rents just barely covering the mortgage and the other expenses . . . as long as the property is in a neighborhood that is very stable and desirable, or at the very least, is showing signs of rapidly becoming such a neighborhood. And, of course, they also want that property to be in good condition, well maintained, and in possession of other desirable features such as charm, character and amenities.
What I often try to do for my clients is to find a “happy medium” between these factors, modified, naturally, by whatever my their particular appetites or needs happen to be. I have been fairly successful at this over the past several years as numerous clients will attest. With the off-market property featured here, I am offering an opportunity that will be right in the “wheelhouse” of many of you. The cash flow, or cash-on-cash return, is not necessarily “dazzling,” to be sure. But it ain’t bad! One would have to put out $425,000 of down payment, and would get a return of $3000/mo (after mortgage and all expenses), or $36,000 per annum, or about 8.5% cash-on-cash return. But, what you would also have is a property in an amazing historical location in the heart of Angelino Heights that has tremendous charm and character, and has been recently renovated to a very high level. It is a location that will almost certainly continue to rise in value, will always be sought after, and will not give one headaches, or lots of unexpected expenses.
When you take all these factors into account, I believe I am totally justified in calling this property a GREAT DEAL. That’s my story, and I’m sticking to it. 🙂 Let me know if you want to take a run at it and I will help you get it
