Great Deal Alert $1,300,000 - Investment Property
Here is an off-market opportunity that pencils out very well in a very upside location. It is 8 units in Glassell Park and is currently getting $9150/mo or $110,000 annually. The market rents on these units is about 15% below market and it is very possible that several of these lower-rent tenants will vacate soon, thus allowing you to bring in tenants to pay current market rents. However, even without that happening, it does pencil out well right now. Plus, the property has been well taken care of so expenses will be minimal. For those of you who are familiar with cap rates, this comes very close to being a 6 cap, which is excellent for Northeast L.A. Here’s how the numbers lay out:
At 30% down ($400,000) you are having a net monthly income of $2400/mo, or $29,000 per year. That is 7.2% cash on cash return, with the likelihood of having that rise considerably over the next few years due to lower-rent tenants moving out and being replaced by tenants paying current market rents.
Let me know if you have interest and I will help you get it.