OfflineI have an opportunity to get 1% rental properties in San Diego, but I have to purchase 7 of them for 1.3 million.
this off market seller (we found by mailing) called yesterday. My wife and I havent closed a deal yet, but this is the first "hot" opportunity we have come across via mail campaign.
An investor holds these condos(he purchased cash) and would like to move to a larger Industrial deal that he just found.
Right now the units (condo's) are fully rented for 121k per year in 92115 zip code.
It is my understanding that purchasing a rental unit that produces 1% in rental income of the purchase price is a good deal.
I am not sure I have a buyer for this one yet, but I am looking now. Any thoughts, ideas, are appreciated.
-Chris and Kether Sprague
“I do not think much of a man who is not wiser today than he was yesterday.” -Honest Abe Lincoln
Want off market sellers to call you? I think writing letters to vacant home owners is a great marketing avenue. I have vacant homes in every state! With the owners address! I want to partner with other wholesellers. If you are interested, please PM me! -- This is how I got my first deal, and I will give you leads and help you build your/our team! if you don't have them already.
I meant that the properties would rent for 1% of the purchase price.
-Chris and Kether Sprague
“I do not think much of a man who is not wiser today than he was yesterday.” -Honest Abe Lincoln
Want off market sellers to call you? I think writing letters to vacant home owners is a great marketing avenue. I have vacant homes in every state! With the owners address! I want to partner with other wholesellers. If you are interested, please PM me! -- This is how I got my first deal, and I will give you leads and help you build your/our team! if you don't have them already.
I know of 5 units in 92115 for $143,000/unit that will yield a 5.5% cap rate going for $719,000. So your deal is about $187,000/unit. $121,000 in rent @ 40% expenses factoring in HOA fees yields a 5.5% cap rate. You'd have to go over the numbers and validate the rents and expenses carefully. Seems pretty much like a retail deal. The problem with condos is the HOA fees. You also have to check out the financial stability of the HOA. Has the complex been maintained? Does it have enough reserves, etc. You don't want any special assessment surprises.
Goodluck..You got this!
TC
Miami Florida
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