These days, trying to find an income property that actually ‘pencils’ is pretty tough. I oughta know…. I am looking just about every day. So, when I find something that actually has a chance of making sense, I want you to know about it right away.
This one makes sense for the person who is willing to be a bit patient. Specifically, it is for someone who is willing to acquire a property that only has a modest cash flow today, but has the ‘right stuff’ to give a great return over time. Here’s the numbers:
Upon buying it, you will have a cash flow immediately of about $1000/mo. However, you have tenants who are not paying so much below market that it is a ‘pipe dream’ to ever have them leave. You can either elect to negotiate with them right away and hope they will leave for a reasonable buyout fee, which is quite possible. Or you can bide your time while the tenants pay for your investment (and then some,) and eventually they will leave of their own accord and you can fully reposition this property. Either way this property, operating at full capacity, will yield easily $9k/mo or a cash flow of approximately $3K/mo. And that is before you even think about taking full advantage of the zoning, (R3/TOC 2) which could allow you to tear down the existing structure, start over and build as many as 11 units!
It is a very attractive property and is located in a part of Echo Park that has great upside. If this looks interesting to you and you want to take a run at it, or you just want to know more about it, contact me and I will help you out.
Best, Ken Shapiro, Broker/Owner Silverwood Properties