Great Deal Alert 7 Units – South L.A. – $1.4 million Amazing Cash Flow

For many of you, when you hear “South L.A.” that’s a non-starter as far as purchasing a property. Fair enough. But I am here to tell you that my most prolific and successful investor clients do not shy away from South L.A. Plus, they have learned that not all streets equal all streets in terms of tranquility and safety, or lack thereof.

A couple of weeks ago, fed up with seeing property after property on the market absurdly priced such that a buyer not only couldn’t cash flow on day one, but would wait a long time before they could ever cash flow, I decided to do a ‘deep dive’ into the market like never before, to see what I could find. Well, suffice to say….. I found! But it is on the market, hiding in plain sight and you would have to act fast before someone else does. Here is what I found:

It’s a 7 unit, in good condition, that has such a good cap rate (or gross rent multiplier, or whatever metric you want to use,) that if you put down 25% even with today’s obnoxious interest rates, you are still going to cash flow $4,000/mo on day one. And that is with only putting $350,000 down, meaning you would be getting 13.71% cash on cash return, and that is after paying for a property manager, utilities, gardener, maintenance, mortgage payment, etc.(Or, manage it yourself and get an even greater return.)  Not only do you get that amazing return, but also there is room – and I mean REAL room – to build a couple of ADUs as well, giving one the ability to take that 13.71% cash on cash return figure and drive it into the stratosphere.

Now, back to the subject I started this email blast to begin with….location. I wasn’t certain whether this property was in a gangy, crummy area or not, so I went out this morning to check it out in person. I got out, walked around, found mostly nice single family homes there that were well taken care of. Actually met three of the neighbors and asked them to give their honest assessment of the location. Each one – one for one – told me this particular block was quite tranquil and quite free of gang and crime activity. They felt very safe for themselves and their families and enjoyed living there. This actually matched my personal observation in the time I spent there. Plus, as if that weren’t enough, the subject property is gated and totally secure.

So there went the last possible reason why I wouldn’t enthusiastically recommend one purchase this property. Call me right away and I will help you do so.