Great Deal Alert -10 Units – $1,650,000 – Filipinotown

As you know, you have not heard from me very much lately re great deals. That’s because I hadn’t found very many. But here is one:

So what makes it a great deal? Well, first of all,despite the fact that the tenants are paying, on average 25% below market, if you put down 25% (yes, I do have lenders who will let you get away with that little down payment,) then you will be cash flowing $3,000/mo on day one without doing any repairs or upgrades. Plus, with the tenants only paying, on average 25% below market, it’s not unreasonable to expect that some will leave in the not-too-distant future, and/or some will be amenable to a manageable ‘cash for keys,’ which of course will only increase the cash flow. But even all that is not what makes it a ‘great deal;’ that only makes it a ‘good deal.’ So what makes it a ‘great deal????’

So, in addition to everything I have already told you, the property comes with 3 ‘permit ready to issue’ Accessory Dwelling Units. You don’t have to get them through the permit process; it’s aleady done! All you have to do is build them. And since they are going to be replacing some of the parking stalls, they will be relatively inexpensive to build, say around $75,000 give or take, per ADU. Granted, you will have to give a modest rent concession to 5 of the 10 tenants for taking away off street parking, but even taking that into account, you will now enjoy a cash flow of greater than $6000/mo, or $72,000 annually. And that is with you putting down no more than  $500,000 of cash. Do the math…. that comes to 14.4 % cash on cash return, and this on a property with huge upside.

OK, there you go. If you want my help with this one, or want to know more, give me a call and I will be happy to help you out.