Involved In Real Estate · Los Alamitos, CA · Member since 2014 · 22 posts · 0 votes
Hello All,
I am looking to buy apartments with 2-10 units, class C-C or better and with Cap rates of 7+. The locations that im looking for are in the (California) Los Angeles Areas, Orange County, IE, San Bernandino, Riverside, San Diego and Bakersfield. Really looking for properties that have potential of add value with sweat equity. Wholesales, short sales, and REOs are good. But will look at anything that makes sense. Thank you.
Hi Ed - I realize that you posted a year ago, but I have a three-unit property under contract with a large buildable lot. My plan was to build out 5 new homes, but I now need to move on.
This is a great project for a house hacker, flipper, buy/holder, or developer of new inventory in SD. Collect triplex rental income while developing the lot for buildout.
I've been looking at this under three separate scenarios:
Scenario A: Teardown and build on RM 1-1 lot. (15,814sf lot supports 5 units)
5 1,800sf units
3bdr/3ba 2-car attached garages
$2.4MM all in for acquisition, lot development, construction.
$3.125MM exit at $625k/unit ($347.22/sf). Pro forma and due diligence available upon request.