Great Deal Alert – Silver Lake 4-plex – $1.7 -1.8mm

This property belongs to a friend of mine but not my listing. But I do have “inside” info that no one else has, which adds up to a “great deal.” Here’s the specifics:

First of all, the $3750 rents are actually mid-term leases (30 day,) not traditional leases. However, he is getting those rents easily and he is running it himself, so that’s what I would recommend you as the new owner continue to do.

Secondly, based on my conversation with my friend, the owner, the remaining low rent tenant can be bought out for anywhere from $30K – $40K. Frankly, even at $50K it would be a bargain, as the ‘delta’ between the existing rent and what you will get is a whopping $2600/mo!

Thirdly, he says he addressed all of the ‘systems’ in the property before he put it on the market so there should be little to no deferred maintenance.

Lastly, he is willing to take 5% less than the asking price and possibly even as much as 10% less. There is no parking which isn’t great. But it isn’t preventing him from getting the rents he is currently getting. It’s a great location and a classy looking building. At $1.7mm and with the low rent tenant negotiated out, it’s a real money-maker, with a lot of upside due to location.

Let me know if you want my help with it and I’ll be happy to help you out.

Best,
Ken Shapiro,
Silverwood Properties
818-237-6963