Property Acquisition in Lakeside

I am very excited today because we are acquiring a new property in Lakeside. The property came to me from one of my flipper clients. I had called him about his opinion on a 2 unit property that I was looking at (it needed a lot of work). When he stopped by he had mentioned that he had a deal for me that was better than the one we were looking at.

This is a 3 unit property that is in Lakeside. The property is 2 buildings and each unit is 1 bedroom 1 bath. The rent on units like this is about $1,000 (in fixed up condition). So I figure that I will calculate conservatively and estimate that I will get $900 per door. The property needs about $30,000 in work in order to get it to high end sale shape.

Some may wonder why I am building the units with granite counter tops and nice appliances but I think that by doing this I will get more high end tenants that respect the property and will take care of it.

The key to this property is that I am in escrow for $156,000!!!!

If this unit gives me $2,700 a month in rent;

$2,700 -Rent
-$162.50 - Taxes
-$270 - Management
 -----------------------
$2,267.5

This gives me a 14.5% return on $186,000 ($156,000+ $30,000)

This will be a great cash flow property for many years to come.

Here are the before pictures, I can't wait to see it when the contractor is done with it.