LA Duplex - Tough Investor Play
I recently contracted a small duplex in the Huntington Park area of Los Angeles. Ask was 505k - however, being the only duplex in the area it was very difficult to find accurate comps. The surrounding homes are well into the 6's, but the duplex has had little restoration and is currently occupied by handicapped month to month renters. With a 6% cap rate it isn't a terrible cash flow play -- and there's a potential appreciation ride. However, ideally it'd be a fix and flip where the right investor could convert into a larger SFR or just renovate the existing units -- BUT I have a tough time pitching local investors to give notice to handicapped tenants whom the duplex has been physically adjusted for. Sometimes the most lucrative play just isn't the right way to do it.
Anyone have experience with anything similar?