Sold $660,000 - Duplex
Here is an excellent off-market opportunity in my current favorite location, as far as opportunity and upside are concerned: Boyle Heights. It is still not completely “discovered” as a location, hence the opportunity for a deal. This duplex consists of two 4-bedroom, 2-bathroom, 1200 sq ft units. There is enough parking in back for four cars. One caveat—the units are currently ugly. But it would only take about $60K between the two of them to “de-uglify” them. And the good news is they were built in 2004 so it is highly unlikely you will have any expenses beyond cosmetic. The other great thing about being built in 2004 is they are not under rent control!
The current tenants are paying $1800 each, or a total of $3600/mo. Once you vacate them and give the property the necessary “facelift,” you should be able to get about $2700 for each of them. They can be had for $600,000 right now. It is unlikely they will appraise for that amount so you will need to bring in additional cash to purchase them, or get a hard money loan, or pay all cash and then re-fi to a conventional loan once you have vacated and upgraded. After you have done all that, you will be cash flowing approximately $2000/mo or a 14.5% cash-on-cash return.
Let me know if you are interested and I will help you get it.
