I have a scenario that I would love some help on. 18 & 36 Unit apartments in CA. Just got them under contract. Purchasing for 75k & 170k respectively. Yes, that 4.5k per door. It needs 470k in repairs so that totals out to about 735k for everything that come out to 13.6k per door (still spectacular right). After running very conservative numbers I estimate that it’s worth 992k after it’s repaired. Once again VERY conservative numbers and at a 10% cap rate (I feel that they are worth more around 1.2-1.8MM). The units are currently at 33% occupancy however, this is because of the condition that they are in. I have private investors and can bring a large amount of money down however I can’t find a hard money, private money, or a partner that has any interest. Any ideas. At this point I am willing to partner, assign, wholesale, or do anything to get this deal done. It is a very good deal and at the MINIMUM there is 250k in equity. Not including the monthly cashflow that these units will produce. Please someone help me. Thanks check out the video. www.youtube.com/realestatewishes
Wishing Your Success,
Omar
Hi Omar,
What is market rent for 1br’s in Trona, CA? I looked at it on google maps and it looks like a small town around some kind of industry (mining?)… How vacant are the other rentals in that town? What is that facility the town is clustered around and is it stable?
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To follow up some, I found an LA Times article, headlined “Solitary, Splendid Squalor; Trona now suffers crime and blight along with its desert heat and a hellish stench of sulfur,” which says:
“Over the years, Trona, once a thriving community of 6,000 on the ragged edge of Death Valley, has shriveled to just 1,800. Drug dealers looking for cheap housing have moved in. Parolees abound. Arsonists have torched dozens of vacant homes, leaving charred skeletons behind. Business owners, unable to make a profit, have simply locked up and walked away.”
According to Wikipedia, “Trona is known for its isolation and desolation” and “[t]he local school plays on a dirt football field because the searing heat and highly saline soil kills grass.” It’s the only dirt Highschool football field in the continental US.
Going to have to convince me a bit more…