Today we have decided to inform the interested parties on Shafter and give one week to make an offer. If no offer is received, we will take the property of the market, do the repairs ourselves, and sell it for more and with more profit after repairs are done.
If potential investors cannot see the deal here, we are no longer willing to wait.
Lets make a recap:
You can buy it as is for $819,000.
The repairs are $40,000. That is the repair cost estimate made by a home inspection/pest report company. You know that you can do at least 25% more of the work for the same price or you can repair the list for 25% less . Even if you decide to spend the $40,000 with a contractor, you can actually complete more work than on the list.
That means the total of the sales price and expenditure is $859,000.
With a rental income of 4 x 895 and 2 x 1250 or $73,000 per year. You can increase the rent by 1.9% as banked rent or about $1400 per year.
The current owner is not charging for parking spaces ( off street), where most units are charged 15 - 25 dollar per month for that.
At 11.5 GRM, this is a deal for a property in good condition in a great neighborhood.
There is also the possibility to make it into a fourplex, by combining the 4 1/1 units into two townhouses of a 3/2.
Fourplexes sell in Temescal at 15 - 18 GRM or in this case, lets use the min of 15, that would be a sales value of at least $1,100,000. Even if you put an extra $75,000 in the conversion, your cost is about $925,000
One week to make up your mind to act.
If the investor is not willing to do the work, we will do the work ourselves and reap the benefits.
I hope you can understand our position.
Let me know if you need more info or if I can assist you here with any advice.
Kind Regards
Antoine
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