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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


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Location: Orange, CA, USA

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