Cash Flow Machine – 3 New Properties

Cash Flow Machine

I have three new Cash Flow Machine properties this week for investors with a range of investment size from $65k to $210k.    I also have one in North County that doesn’t meet the 10% cash-on-cash requirement but does hit 8%, which is good for North County.

North Park (sort of) – This property is just north of El Cajon Blvd, so it doesn’t truly qualify as North Park, but it’s close.  A 4-plex with 3 long term tenants and the owner.  This is a short sale and we estimate it could be purchased for $425k with another $20k for repairs.  Rents should exceed $4,500/mo (owner pays water) providing a Cash-on-Cash return of 13%.

Spring Valley – This is another excellent opportunity but requires a larger investment. 8 units that are fully rented.  Cost will be in the $700k range and you will need about $30k for repairs/reserves.  Rent comes in at just under $8k a month providing almost $30k of annual cash flow and a Cash-on-Cash return of 14%.

Lemon Grove – This duplex is a great opportunity for an investor with a little less cash.  At just over $210k, this will require about $65k to get into and allocate repairs/reserves.  Rents from 2 long term tenants run $2,200 a month giving this property a 11.8% Cash-on-Cash return.

Our registered investors will be getting specifics on these properties by close of business today.

Cash Flow Machine – 2 More Properties

2 San Diego Properties with 10% Cash-on-Cash Returns

I have 2 more properties showing in excess of 10% Cash-on-Cash returns. 

The first is in Logan Heights and is being offered at just under $350k.  It has 3 units and all have been upgraded recently so the cash outflow is low after closing.  This will take about $90k to close (25% down) and yield 10.6% cash-on-cash.  Cap rate if you manage it yourself is 7.5%.

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The second is in El Cajon and is a four-plex that needs a little work.  The investment is larger at about $145k and the cash-on-cash return is between 9.5 and 10.5%.  Cap Rate is 7.45%.

Cash Flow Machine – Spring Valley

Cash Flow Machine

10..5% Cash-on-Cash in Spring Valley

This is a 2 story duplex.  Both are 2 beds.  Total rents are about $1,900, but the top unit needs some work that I am estimating at $20k.  List price is under $180k and the total to get in and repair should be under $62k.

Annual cash flow is expected to be about $6,300, providing a cash-on-cash return of 10.4%

Cash Flow Machine – National City

Cash Flow Machine

National City Duplex

We talked about this one on the radio this morning.  It’s a duplex listed for $189k that needs about $20k of work.  Water is common, so owner pays for it.  Rents are about $2k/mo.  Financials look something like this:

Cash needed to acquire and rehab using 25% down – $65k

Loan balance/Interest rate/Payment – $142,500/5.0%/$765.

Gross Rent/% Operating expenses – $2,000/36%

Monthly Cash Flow/Cash-on-cash return – $525/9.76%.

Call me if interested in this one.

Cash Flow Machine – Imperial Beach

Imperial Beach 4-Plex

12.7% Cash-on-Cash

This is one of the better ones I have seen in awhile.  It’s a 4 plex with 3 units currently rented.  Rents are $1,150 on each of the 4 2-bedroom units.   I am allowing $25k for rehab, although that will be spread out over time (increasing the return) as three units are rented and likely do not need much.   Owner pays water, and we have allocated $230 a month for that.  Total deductions for vacancies and expenses are pegged at 33%.

 

 

Shoot me an email for the financial sheet and listing so you can do a drive-by.  

If you are not on the email distribution to receive these updates daily, let me know and I would be happy to add you.

More Investment Opportunities

Cash Flow Machine Update

March, 2011

Every once and awhile I will try and update opportunities we are finding in the market.  There are too many properties we find that are good deals to post them all here as blogging is secondary to selling homes and working with investors.  However, here is a sampling of 3 opportunites that are currently available.    I cannot provide addresses because they are not my listings, but if you are interested, please ask me for access to the investors site we run where there is more information.

City Heights – 12.5% Cash Return

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Monday Morning Coffee

Monday Morning Coffee

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Monday Morning Coffee

Cash Flow Investments

Monday Morning Coffee – Happy New Year

Monday Morning Coffee

Happy New Year & Happy Cash Flow

Oceanside Investment Property

Found an opportunity in Oceanside.  This is a 4-plex pulling in over $4,000 a month in rent.  Possible to offer $400k (if there is a bidding war, this one will go up).  The return on this is 11% cash-on-cash (25% down) for owners who hire a manager and over 14% if you do it yourself.

The area is a good one for tenants (near Camp Pendleton), but there will be turnover as that line of work does include a lot of job transfers.  It was renovated in 2004 and has been kept up since then.  There is a question on some of the appliances (refrigerators and commerical laundry) conveying, so our numbers allow $10k addtional at close of escrow and still perform quite well.

This one may get a lot of activity as we do not see these in North County that often - I will be bringing this one to the radio on Thursday am, so let me know quickly if you are interested.

A full write up with comps is on our Cash Flow Machine blog, it is password protected, so let me know if you want access.