Apartment Complex for Sale California | Income Properties Near Me
Looking for apartment complex for sale California or income property for sale near me? this short video will give you a little cautionary tale from some california investment property searching i did for a client and also give you the solution we came up with at the end to actually get to a much higher cap rate in california on your property if it lines up for you. So let’s go. We had looked at hundreds of properties online over a couple of years, and lots of investment property investment options over time. The MS was sending us stuff, and she and I would look separately trying to find her the right thing. Iif you lived in California at all for income property probably know that the cap rate tends to be about under 5% meaning on a property that's worth $800,000 at the current valuation levels, the rents coming in the door for that property would be below about 4000 month, and I chose that example for a reason. So let's take a look at this property that popped up about six months ago that we were so excited to go see when we realized it was a four unit property, and each door should rent for about $1100 a month, 2 bedroom 2 bath, bread and butter units. And the pricing was under $400,000. So I checked several things that I always check. I have my spreadsheet of criteria and got my son to hop in the car to go take a look at this thing, because it looked like a great deal. The problem was if you looked at the numbers it looked like too good of a deal ,so when you go hop in the car to go look at a place without having checked the first three basic things you're possibly gonna waste your time. Now my son and I had a great time, and we got some ice cream on the way out and had a lovely drive, but if you are just looking for income property and trying to maximize your time, you don't want to do this. I had made the call to the city. and a subsequent email from the city revealed that the zoning on this property was single family residential and they would never allow a four unit property to go forward on that space. So we kept looking. The market ran up and over time over the past year, we realized she already owned an investment property: a single family home in Los Angeles, and the lot was just big enough to put a second two bedroom home.Tthe cap rate on that is between 8 and 11% with the way that we were looking at it, which is far better than anything else that you could get in California with having to pay for the land.One caveat is, you probably don't want to - or a lot of people don't want to - put an ADU or granny flat on the back of their own home and rent it out and have a tenant running in and out. But if you already own a home as a rental, this might be a good option for you to really ramp up your cap rate.