Great Deal Alert – $849K – Commercial/Residential Property – Boyle Hts Adjacent

3231 City Terrace Dr, Los Angeles, CA 90063, USA
Triangle 1 Created with Sketch. Great Deal Alert Triangle 1 Created with Sketch. - Investment Property, Residential Income

At a time when properties that actually ‘pencil out’ are few and far between I am pleased to present to you a property that does. I have, in fact, already told you about this property a few weeks ago, but on closer inspection having spent a bit more time working with this property, I realize it is a better opportunity than I originally thought, as follows:

The zoning allows you to have three residential units there, plus a virtually unlimited number of commercial units. Currently there are two residential units (one vacant and the other easily vacatable,) and two commercial units (both vacant.) There is a third structure underneath the residential units (currently garage and workspace) that can and should be easily converted to another residential unit. You would just need to replace the garage with a carport, which can be done quite easily and quite inexpensively. Bottom line, with an expenditure of no more than about $200,000 you end up with 2 one bed units,1 three bed unit, and two 600 sq ft commercial units. Plus, about 10 parking spaces. The income from all of these units, all fixed up, will add up to about $8400/mo. So, this means if you purchase it for $850K, spend another $200K for renovations, you end up with a 6.2 cap rate (!) – virtually unheard of in this day and age in any decent location of L.A. Or, in other words, a monthly cash flow of $2700/mo, or a 10% cash on cash return. And, as if that weren’t good enough…..

You are sitting on a property whose zoning allows you to expand into a large and prosperous complex of retail and/or office space, (or both) down the road as this part of town continues to gentrify. So, you have current profitability with very nice future expansion opportunity at the same time.

Let me know if you are interested or want to know more and I will be happy to help you out.

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