Sold $890,000 - Investment Property
This is a 10 unit building for $890K. Two units are vacant. Doing minimal fix-up to the two vacant ones and renting them out you will have $9300/mo income. At 30% down you will be making a stunning (approx) 15.4% cash on cash return. However, the really smart play on this property – even better than the above – is as follows:
This is HOT, so stay with me!
You know I have made the point often, if I can help you get the jump on a property, handsome deals result. In a market as competitive as this one, other than being able to bring you a property that is not yet on the market, this is the next best thing. We have such an opportunity with this property right here, right now.
Specifics are as follows:
This is a 10 unit building for $890K. Two units are vacant. Doing minimal fix-up to the two vacant ones and renting them out you will have $9300/mo income. At 30% down you will be making a stunning (approx) 15.4% cash on cash return. However, the really smart play on this property – even better than the above – is as follows:
One of the “units” of this property happens to be a 2000 sq ft house that essentially sits on it’s own lot. At 27,000 sq ft of lot size, you should be able to easily get a ‘lot split’ on this property. Then, you spend – liberal estimate – $150K to upgrade the house, including a generous relocation fee to the tenants, and then sell the house for $550K (minimum) and recover your full down payment, and then some.
Note – This property has been overlooked because it sits in what used to be a gang area. Like much of this part of town, it is cleaning up rapidly, and is a ridiculously good buy that has simply been passed over due to obsolete considerations regarding locatin that no longer apply. I would buy this one myself as a ‘flip with a bonus’ so to speak, if my own personal plate wasn’t so full rignt now with other projects.
Anyway, let me know if you want help with this one.
