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Echo Park Income Property – $425,000

Echo Park, Los Angeles, CA, USA
Triangle 1 Created with Sketch. Great Deal Alert Triangle 1 Created with Sketch. $425,000 - Investment Property

This is a very good income property which actually pencils out nicely. Finding a property where there is also NO BIDDING WAR is actually not very easy, so you should pay close attention. Here are the positives on this property:

This is an income property where the agent is in Orange County and apparently has very little control over the situation and thus no one is able to see the property, hence, no offers. I went directly and met the tenants and did see the property and wish to report the following:

This is a very good income property which actually pencils out nicely. Finding a property where there is also NO BIDDING WAR is actually not very easy, so you should pay close attention. Here are the positives on this property:

a) The tenants are currently paying $1750 each ( $3500 total.)

b) The property was built in 2006. That is a positive in two ways: first, THERE IS NO RENT CONTROL.
Second, having been built so recently, it had to have been built to the city’s standards, so it is unlikely you will have to spend any money on the property.

c) Although it is right up against the freeway, it is actually in a good location from the standpoint that it is walking distance to Echo Lake and is also a short drive (without using a freeway) to the night life of Echo Park, the Art District and the heart of Downtown.

d) It has plenty of gated secure parking.

I estimate it can be had for $400K. Assuming that’s the case, with 25% down, you would be paying approximately $2400/mo including mortgage, prop tax, insurance, utilities, gardner and maintenence. Gross income would be $3500/mo (not including rent hikes which you can easily do since it is not rent control), which leaves you $1100/mo net income, or $13,200 net annual income. This means, if you are out of pocket $100,000 for down payment and, let’s say, $10,000 for closing costs, you will be getting a cash on cash return of 12% (plus depreciation, which shields some of that income from taxes! Frankly, it’s pretty ‘fool proof.’

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