Sold $950,000 - 4-Plex
Here is a truly great one for those who are brave enough to venture into Lincoln Heights which is, if you haven’t been paying attention to my email blasts, the next Echo Park. This one, properly done, should net you a whopping 16% cash-on-cash return! Here are the specifics:
First of all, this is kind of a special 4-plex in that you would never know it was actually four rental units if you hadn’t seen the public records. It looks and feels like four separate, tiny, single-family residences. Not only are the units detached, but they are each separated by fences; they each face the street; and they each have their own separate yards. In addition to the four separate bungalows, there is a fifth piece of real estate included which is the parking for all four of the units. The seller is taking care of relocation of all four units so you don’t have to. All you are left with is the cost to renovate the units, which shouldn’t be more than about $45K or $50K per unit or $175K to $200K total.
As to the units, they are kind of small at 600 sq ft each. But, as I say, they each have their own yard and parking and they are two-bed units. Properly renovated, they should fetch about $2300/mo each. Once again, all of this adds up to a net income of about $4000/mo or a 16.6% cash-on-cash return!
If you want it or know someone who might, call me right away.
