Sold $450,000 - Triplex
It is not financeable so one would have to pay all cash, and then do a take-out loan after fix-up. At these rents, at $450K purchase price, with 25% down, this will come to a very very nice 14% cash on cash return in a very upside location in the heart of Echo Park.
We always love it when there are “apparent” major liabilities on a property that send the competition running for the hills, yet we know these alleged liabilities are quite manageable. Such is the case with this triplex, as follows:
It is a major fixer that has landed in REAP (Rent Escrow Account Program,) which means the previous owner had code violations they did not fix and now the rents all go to the city until the violations are fixed. Very simple to deal with. The property has, at a guess, about $75K of fix-up needed to make it ‘tenant ready.’ Two units are vacant and one has a low rent ($550) tenant in it. Once fixed, I have it at $2500/mo for the vacant 3/2 unit, and $1800/mo for the vacant 2/1.
It is not financeable so one would have to pay all cash, and then do a take-out loan after fix-up. At these rents, at $450K purchase price, with 25% down, this will come to a very very nice 14% cash on cash return in a very upside location in the heart of Echo Park.
Call if you want help with this, or want to know more about it.
