Multi-Family reposition in Los Angeles - Lots of Photos
I recently finished work on my 4-unit building remodel in Silver Lake, an area that has become fairly desirable in Los Angeles.
I seek out under-performing buildings with deferred maintenance and under market tenants. I fix and remodel the building as a high end offering then bring in top market quality tenants, offering beautiful new homes and great service to those that sign leases with me. I end up with forced appreciation in an already strong appreciation market as well as strong cash-flow. Momentum is gaining and this model is proving successful for me. I thought I'd show one of my recent deals as I near completion.
This is what the building looked like when I purchased it a year ago:
And after:
A couple before and after interior photos, 2 bed layout:
After:
A couple before and after interior photos, 3 bed layout:
After:
If you want to see all my before and after photos, they are available here:
Before: https://www.dropbox.com/sh/rsry5kjok097j8b/AAAGjIl...
After: https://www.dropbox.com/sh/spee31mdpa6vtdv/AAB3f4B...
The building was grossing $3,770 when I picked it up. I listed all 4 units about 3 weeks ago. I have 3 signed leases, and filling the last 3 bed unit now. The building is scheduled to gross $11,680 per month.
Basic numbers:
Purchased: $1,114,700
Remodel: $250,000
Unit 1 - 3 Bed/2 Bath - Vacant - For lease, $3,295/m
Unit 2 - 2 Bed/2 Bath - Leased - $2,495/m
Unit 3 - 3 Bed/2 Bath - Leased - $3,345/m
Unit 4 - 2 Bed/2 Bath - Leased - $2,545/m
Non rent-controlled, 1990 construction building. Lots of upside as Silver Lake rental values continue to grow.
Building value at a 5 CAP is about $2,000,000.