Great Deal Alert $650,000 - Triplex
Here’s a classic example of how a great deal can ‘fly under the radar,’ even though it is on the MLS.
Here’s the story, and it’s a good one!
I had this triplex under contract with a client of mine two weeks ago. Subsequently we found out that there is a legal action pending on this property. When my client found that out, she asked me to find another property for her, which I did and which we are now in escrow on. We canceled this other escrow.
Meanwhile, the listing agent realized she probably shouldn’t have it on the market while it had this legal action pending, so she put it on hold. However, I have been in touch with the Attorney and know that this is, in all likelihood, a very tame legal situation that should resolve quite rapidly.
Meanwhile, I have also been in communication with the tenant in the rear (this is the only unit that is occupied, the other two will be delivered vacant). That tenant looks like she is willing to leave for a reasonable relocation fee. This of course means all three units can now be rented at current market rents.
And what you ask, would current market rents be? Excellent question. The 3 bed would be about $2400/mo. the downstairs 2 bed would be about $1800/mo. And the detached 2 bed in the rear would be about $2200/mo.
There is plenty of parking, some yard, some views and it’s in a good location. Other than the $15K you may need to spend on the relocation, I do not see much in the way of other expense here. If you tally up the down payment, closing costs, relocation fee, and let’s throw in another $10K for good measure, you end up with a truly terrific 17.2% cash on cash return, and in an upside location!!
How’s that for a handsome return?
Any takers ????