Here is an excellent example of how to apply SB13 (the new Bill I told you all about last month that applies to Accessory Dwelling Units.) This is a single family residence that has been operating illegally as a triplex. But, with the advent of SB13, you can make the other two units legal! When you do, you will have three 2 bed 1 bath units wherein you can get, fixed up, three units that will rent for approx $2350/mo each. That, of course, adds up to a total of $7050/mo. If you buy it for $715K and spend another $150K to get it in shape, you are now “all in” at $865K. You then do a “cash out” re-fi and you have great numbers. You get $2450/mo cash flow with only $216K out of pocket or, in other words, an unheard of (at least these days) 13.6% cash on cash return!
I am happy to help you get this one if you want it. Call me at 213-250-4404 or my cell – 818-237-6963.