Purchasing Quadplex in LA; possibly will convert to 6 units
In Los Angeles
Listing price $690k. I have offered $645k.
It currently has 2 2bed/1ba and 2 5bed/2ba.
The property was non comforming 6 units and the seller just converted and remodelled it to 4 units. I may convert it back to 6 units; 4 2bed/1ba, 2 1bed/1ba; but the conversion would be non conforming so there are risks related holding the property like that. I plan to hold long term. Conversion costs would only be about 20k.
I dont know market rent for the 5 bed units because they are an oddity. My range guess is 1900-2200. The 2beds will go for 1150-1300, and the 1beds for 800-950.
The seller acquired the building by auction and doesnt have any expense history or rental history. All units are currently vacant.
I plan to put 25% down $172k on full asking, with a monthly payment of $2700.
Thoughts? Opinions?
Thanks