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"Safari Made me over $600,000!" Four units in San Pedro, purchased by
our 25 year old client for $329,000 in 2001 using a 3% down payment. Over
time our client raised rents from $29,000 per year to $60,000.
Two side by side 10 unit buildings grossing over $98,000 per year
located in Wilmington. Purchase price was $378,000 with a 13% down payment. The
previous owner carried back the financing. This property, as you can see from
the picture was a fixer, thus the 3.8 X
My client purchased this 5 unit view property in San Pedro on the basis
of 8 X Gross annual income. After acquiring This 4 unit building in San Pedro was bought for 3% down with FHA financing.
The previous owner believed this building was under rent control. After a little
checking with the city we Eight Lomita units composed of two side by side buildings. Purchased by a
mother and son, each took title to 4 units, which enabled them to reduce the
down payment required from Nine units in Redondo Beach, purchased on the basis of 9 X gross annual
income with seller carry-back financing. My client is in the process of cleaning
up the property in order to raise
310-493-1999 Staff@SafariRealtors.com |
Currently
this building throws off $1,500 per month in income. In 2004 our client
re-financed and
took out
$100,000. He used this money as a down payment on 3 units in Mid Wilshire. On
the new building our client has raised rents, moved out one tenant and is fixing
up his unit. The original building is currently worth $60,000 x 13 GRM =
$780,000. On the 2nd building our client has created approximately $90,000 in
equity thru rent increases and improvements. 
annual gross multiplier. This property was purchased by 4 individuals as tenants
in common, of which I am the lead partner. Property is currently under
professional management and will yield over 30% cash on cash. We just sold
this building for $1,040,000. 
the
property my client gave notice to the tenants one at a time. After each tenant
moved he made approximately $3,000 in improvements. He was then able to increase
rents from $750 per month to $1,200. His original 8 X gross annual income purchase price turned
into a 5 X gross income purchase, with the corresponding increased cash flow.
realized it was not. The building was purchased with a low rent multiplier
reflecting the non existent rent control status. My clients currently live in
the 3 bedroom 2 bath owners unit for under $400.00 per month and still have a
large unrealized upside in rents.
25%
to 10%. They have since increased rent on their first unit from $850.00 per
month to $1,200 per month. It will take some fixing up, but each remaining unit
has the same potential for a rent increase. This building will be a nice
retirement vehicle for the new owners.
rents, at which time should be able to add about $100 per month per unit. This
particular property is zoned R4. My client has the ability to sit on the
property and cash flow, until the market becomes such that he can sell to a
builder if he so chooses.