Great Deal Alert $1,700,000 - Duplex
For those of you looking for an absolute jewel in your portfolio (which, by the way, also is a great investment,) this 7 unit just might be for you. Here’s why:
a) it is absolutely stunning. Not only that, but these units exactly fit the profile of what so many young artistic people are looking for in this area, and despair of ever finding.
b) The current rents are way below what current market rates would fetch so current cash on cash would not be over the moon. But, fear not – these are not the kind of tenant, generally speaking, who will be remaining in a rental situation for long. This means these units will each likely be vacated sometime in the next one to five years and they can be re-rented for current market rates.
c) And what, you ask, might those ‘current market rates’ be for these loft-like, 450 sq ft studio units? Well, given how tastefully they have been done up, and given the separate outdoor patio spaces dedicated to each of them, and given the high ceilings and amazing location (and despite the fact there is no on-site parking) I would say ‘sky is the limit.’ $2000/mo might be a good estimate, but I wouldn’t be shocked to see them go up to $2200/mo.
Crazy, you say? Perhaps so, but then you haven’t seen all the people I have coming into my office practically in tears with frustration at their inability to secure such a living space as this…. and they’ve got money!
Assuming my $2K/mo estimate is correct, in the not too distant future, at 35% down, you would be at approximately 12% cash on cash return. That assumes you don’t spend money on a property manager, and there really shouldn’t be any reason to do so. However, even if you did, you’d still be at around 10%.
This is one you tuck away in your “safe” and watch it grow in value as the rental rates increase.
OK, there you go. Let me know if you’d like to pursue.