Great Deal Alert – FROGTOWN TRIPLEX – $889,000

Triangle 1 Created with Sketch. Great Deal Alert Triangle 1 Created with Sketch. $889,000 - Triplex

This is a property that one of you absolutely MUST buy. What you have here are two 2/1s and a 3/2, all with fairly low rent tenants. I can understand one might be put off by the fact of there being tenants who are paying well below market ($760/mo and $720/mo for the2/1s.) Yet even at a high-price buyout, the numbers pencil out gorgeously. If you were need help on talking to the tenants, I will be happy to help on that.

Here are all the positive attributes of this property:

A) One of the best streets in Frogtown. Tree-lined, quiet and good-looking properties surround it.

B) Two doors down from the L.A. River – if you didn’t know, there is an ACTUAL RIVER at Frogtown, not just a dried up concrete wash like most of the the L.A. river.

C) The 3 bedroom/2 bath unit will be delivered vacant.

D) Really nice views from the upstairs 3 bed unit.

E) Plenty of off street parking – at least 5 spots, possibly 6.

With ‘A – E’ in mind and assuming a good job is done on renovations, I estimate the rents at $2400, $2400 and $3500/mo for rental income. The property appears to be in reasonably good shape, so I wouldn’t think renovations should cost any more than roughly $100,000. Even if one had to pay $50,000 per tenant (total of $100,000,) plus $100,000 to renovate, that brings one to ‘ALL IN’ at $1.1 million. With a $900,000 purchase and an income of $8300/mo, that means a 6.3 cap, or in other words, a cash flow of $2400/mo or 10% cash on cash return! Plus, bear in mind I am probably being very liberal with my figures of tenant relocation fees and renovations, so these numbers could be considerably better.

Let me know if you want it or know someone who might. I will help you get it done.

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