How about this Burbank 4-plex
Love to hear your analysis on this Burbank 4plex?
http://www.loopnet.com/Listing/20061061/1231-N-Cordova-St-Burbank-CA/
@Diane G. - I don't know the going rent, but the listing suggests that you could get $7,700/mo in gross rent. Assuming you can do that, there is still very little chance you make money on this place.
Th $1.3 million dollar asking price demands a lot more rental income. If you finance it conventionally with 25% down, your principal and interest payments are $5200/month. Taxes and insurance take another thousand a month at least (maybe a lot more - not sure what insurance will be on such an expensive building), so you're left with $1500/month in cash flow. In my market, there are properties in the $200-300k range that will cash-flow that much.
But anyway, if it stops there, meaning this is a perfect investment with no vacancy, no management, no maintenance, and no CapEx, then you are making 5.5% COC ROI. However, if you take out 10% for management and 5% each for vacancy and CapEx (low estimates for both, but the price and area might support it), you are losing money (it adds up to -$40/mo).
Holy Cow...
@Kevin Siedlecki so with the rents provided, what do you think would be the right purchase price?
@Daniel Cuevas and @Diane G. - That's a simple question, but does not have a simple answer. A 4-unit building is valued as residential, so it depends on what other houses in the area are going for. Burbank is obviously a very expensive market, and compared to my market, the rent difference is nowhere near proportional to the price difference. An eyeball estimate for what I would pay is something in the neighborhood of $850-900k. I'm not under any illusions that you could actually get it for that. That's why Southern Californians are investing out of state - the market doesn't work for investors. You can't make a retail property in Burbank cash flow.