Case Study: Analyzing a 6.5% Cap TIC in K-Town LA @ $419k. Is the MTR play the move?

[Monika Dr Demmler]

Hey BP community, I'm currently looking at the exit for a unit at 211 S Berendo St #3 (Koreatown, LA). It's a renovated 1925 Art Deco 1BR/1BA.

I’ve just priced it at $419,000 and wanted to get the community's take on the numbers for a Mid-Term Rental (MTR) play.

The Key Details:

• TIC Structure: Rare agreement that explicitly allows non-owner-occupied rentals.
• MTR Revenue: Comps in 90004 for furnished 30+ day stays are hitting $3,600/mo.
• Financing: I have the lender sheet ready (they’ve already vetted the building).

With standard K-Town condos sitting at 4% caps, I'm calculating a 6.5% Cap Rate here. Does anyone have experience with fractional financing on the sell-side in this market? I'm happy to share the lender sheet and the TIC agreement with anyone who wants to peer-review the numbers.