Lender · Ladera Ranch, CA · Member since 2014 · 1k+ posts · 1k+ votes
We purchased this condo in 2011 when it was an REO, rehabbed it, and put a tenant in place, who has remained with us to the present day. The rent is scheduled to increase to $900/month, starting July 1st. Current rent is $750/month and the below numbers from 2015 reflect that. There is nothing wrong with the condo that I know of. We are selling because I want to cash out and my partner wants to buy out my interest in another condo we own together. We plan to list the condo with an agent and put it on the MLS to get full market value in July but I thought I'd try here first. This is an excellent rental, with a long term tenant in place, in a good complex with high demand. If you are looking for appreciation potential, this condo still has room to increase in value once lender financing returns to this complex. These one bedroom condos peaked at $150k-$180k in 2007.
2015 Income Statement
INCOME
Rental Income 9,000
TOTAL INCOME 9,000
EXPENSES
HOA Dues 3,185
Insurance 181
Licences 61
Management fees 720
Repairs 712
Taxes 446
TOTAL EXPENSES 5,305
NET INCOME 3695
Cap rate at $79k purchase price = 5.0%
Cap rate at $79k purchase price at $900/month rent = 7.0%
To Rich Bravo and any others that are interested: Yes, the condo is still available. I was in escrow with an investor, which fell through at the last minute. The condo is listed with an agent at $85k and I'd be happy to PM her contact info to anyone who's interested. I already have a good offer but I want to see what other offers I can get by next week. I'm not interested in having someone wholesale this or providing seller financing. The condo complex will not qualify for FHA and any bank financing will be challenging for this. I don't have any current pics of the inside.