Sold $375,000 - Triplex
Offer an amount where the numbers work to your favor – that’s how! Here are the specifics: the asking price is $425K. If one offers, say, $375K, they would be out of pocket $100K including closing costs. The income, between the three tenants, is currently $3080/mo. Monthly expenses out of pocket, including mortgage, prop tax, insurance, etc. will be approximately $2100. This leaves a monthly net income of $980, or annual income of $11,760. This of course comes out to a cash on cash return of almost 12%!
Here’s how to tune a challenge into a cash on cash return of about 12%
Here’s the deal: the challenge and the upside.
This property has been on the market for 243 days, which in this market is almost impossible. Why ? Because it is located directly across the street from an industrial site, which is kind of ugly and a bit noisy. So, how does one turn this to their advantage, you ask ….
Offer an amount where the numbers work to your favor – that’s how! Here are the specifics: the asking price is $425K. If one offers, say, $375K, they would be out of pocket $100K including closing costs. The income, between the three tenants, is currently $3080/mo. Monthly expenses out of pocket, including mortgage, prop tax, insurance, etc. will be approximately $2100. This leaves a monthly net income of $980, or annual income of $11,760. This of course comes out to a cash on cash return of almost 12%!
Keep in mind that while the site across the street is less than ideal, the tenants are currently living there happily, and that the street overall and the units overall are nice, and that it is in a good part of Atwater Village, walking distance to shops and restaurants.
It is also true, according to the listing agent, that the sellers are flexible at this point, and a $375K offer would probably be given every consideration.
