Skip to main content

27 Cats to a Million Dollar Complex - Invest in Value

Today I wanted to offer a play-by-play on just one of our investment clients:

2013: Purchased a 3 bed condo in South Coast Metro for $128,000. There were 27 cats that lived in this property, all without litter boxes, the smell from the nitrogen in the urine permeated everything, along the top of all the walls had 8 inches of mold, floors were all warped. Funny thing was, they had a $2,000 Viking stainless steel range stove, nearly brand new.
2013: Spend $23,000 to fix it up, including new everything. Little to no repair work for 7 years afterwards because we did it right to begin with. Instant equity as price was $175,000.
2013: Rented for $1,700
2014: Rent increase to $1,750
2015: Rent increase to $1,800
2016: Rent increase to $1,850
2017: Rent increase to $1,950
2018: New tenant, rented for $2,000
2019: New tenant, rent for $2,300
2020: SOLD during the Coronavirus for $360,000, under contract with the proceeds for most of the downpayment for a $1.367M 4plex purchase in La Habra, $7,100 in collected rent, no lates for April or May.

Total rent collected (approx) in 7 years (getting paid to wait): $155,400
Approx rental expenses in 7 years: $65,000
Original Purchase + Rehab: $151,000
Sales Price (net of fees): $338,600
New Money: $90,000
Borrowed money at a 4% interest rate
Monthly payment, including expenses: $5,400
Net cash flow: $1,700 per month
AND
Paying off mortgage at about $1,200 per month
NEW ROI of $34,800 per year PLUS a new depreciation base to shield income, about a $40,000 annual tax writeoff per year.

Versus doing nothing, at $19,200 per year with only about a $4,000 annual tax writeoff per year

We at the Results Real Estate Group believe that price becomes an issue only in the absence of value, while others worry about paying commissions and hire cut rate brokers, we aim to maximize investment returns through sound operations and placing our chips in the right place. Give us a call today to see how we can build your legacy.

#WeGetTheResults
#PreferredManager
#AskGene
#InvestInValue
#WeMakeMillionaires

Orange, CA-TRREG DRE#01843673-RP100 DRE#02059058-P:714-831-1800-E:info@theresultsrealestategroup.com-W:www.theresultsrealestategroup.com-Facebook - Twitter - Instagram - LinkedIn


Labels:
Location: Orange, CA, USA

Comments

Post a Comment

Popular posts from this blog

Real Estate Investments: Invest Up

I want to speak briefly to the masses today. Normally our audience is the Buyer and Seller, and yet it is easy enough for anyone to become both. It could even happen that you are a Buyer, Seller, and Investor at the same time! How can this be? Me, a normal person can be a Investor? Yes. Even more than that, as soon as you start your journey you start doing something greater than yourself, building generational wealth. Let's start at the very beginning, a very good place to start. This beginning looks like a house purchase. That would be because it is a house purchase. Assuming you are buying this house to rent out, you are now a Landlord and Investor. The first house is going to be the scariest, it gets easier from there. Let's assume you have rented out the house for a couple of years and you are looking to upgrade from a Single Family Residence to a Duplex. You would sell your Single Family Residence and 1031 the proceeds of the sale into the purchase of the duplex. Yo...
Post a Comment
Read more

Why Real Estate is Such a Good (Great) Investment: Part 5-(Can we) Build it (yes we can!)

This is the next installment of a 7 part series exploring ideas of why real estate is such a good investment. The focus will be on single family and multifamily real estate, but a good idea is a good idea, enjoy.  Building is a straightforward way to add value. There are really two classifications of it. Either remodeling or constructing. In terms of remodeling, as mentioned in a prior post, it is important to find a 'quarterback' that knows what and who to ask. Improvements should be thought of in terms of how much value it will bring, it has been said that kitchen and bathrooms are the highest return on investment. https://www.remodeling.hw.net   has a very good annual report ( linked here for Los Angeles, see last page ), some highlights is that a MINOR kitchen remodel returns 105% of the money put in. Other things include the expected, Grand Entrance (108.1%), Garage Door (123.8%) and perhaps unexpected, Deck Addition, wood (98.8%), Windows, double pane (102.6%)New ...
Post a Comment
Read more

Why Real Estate is Such a Good (Great) Investment: Part 3-Sell it

This is the next installment of a 7 part series exploring ideas of why real estate is such a good investment. The focus will be on single family and multifamily real estate, but a good idea is a good idea, enjoy.  Alas, today we will be discussing the main thing people think about when they think about real estate investing, selling the asset high after buying low. The biggest advantage to selling real estate is the value added you can do yourself. There is no requirement to hire anyone to do any repairs on the property, as real estate is sold as is. You can do your own marketing, your own negotiating, there does not have to be anyone between you and the market unless you choose for there to be. You choose your partners at terms you both agree with. With that great power, comes great responsibility. Though you can do it yourself, it is more advisable to partner with those who do it every day, rather than every so often. Consider that a real estate transaction employs a...
Post a Comment
Read more