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Great Income Property Opportunity in Echo Park – All Cash – $230,000

Echo Park, Los Angeles, CA, USA
Triangle 1 Created with Sketch. Great Deal Alert Triangle 1 Created with Sketch. $230,000  

I estimate the renos will cost $80K to get the property in shape. If one acquires the property for, say, $230K, and spends $80K to fix it up, it can then be fully rented and then ‘flipped’ over into a conventional loan that should have a monthly net cash flow of $1300, or $15,600 per year. Cash out of pocket’ would be approximately $145,000, yielding a cash on cash return of about 11% per annum. A nice return in a rapidly gentrifying part of town.

Here is an Echo Park property that has an estimated 11% cash on cash potential. Here are the specifics: It needs to be all cash as it’s a major fixer. But the good news is it will be delivered vacant. The point that gives this properly excellent potentialis that it is just south of the 101 in Echo Park.

Why is that good news, you ask ? Because, being extremely plugged in to ‘local real estate knowledge,’ I am one of few people who understand that many pockets just south of the 101 are rapidly increasing in desirablility and, consequently, in value. I know, for example, that these two units will rent for $1700 and $1000 respectively once they are fixed up.

Most realtors and investors are not aware of this rent potential and as such they are not likely to bid as high as someone who knows what rents properties like this will command in the area. I have helped many of my clients “sneak in” under the radar in situations like this. I can do it for you.

I estimate the renos will cost $80K to get the property in shape. If one acquires the property for, say, $230K, and spends $80K to fix it up, it can then be fully rented and then ‘flipped’ over into a conventional loan that should have a monthly net cash flow of $1300, or $15,600 per year. Cash out of pocket’ would be approximately $145,000, yielding a cash on cash return of about 11% per annum. A nice return in a rapidly gentrifying part of town.

Let me know if you are interested, and I will help you out

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