Anybody have any thoughts 35 beds apartment building L.A

[James Oswill]

Multi-Unit Information

Unit Type 1 Information

• Actual Rent: $1,254
• Total # of Baths: 1
• Total # of Beds: 1
• Furnished: Unfurnished
• Total Rent: $13,795
• Total # of Units: 11

Unit Type 2 Information

• Actual Rent: $1,373
• Total # of Baths: 1
• Total # of Beds: 2
• Furnished: Unfurnished
• Total Rent: $10,981
• Total # of Units: 8

Unit Type 3 Information

• Actual Rent: $1,429
• Total # of Baths: 2
• Total # of Beds: 2
• Furnished: Unfurnished
• Total Rent: $5,715
• Total # of Units: 4

Expenses

• Total: $188,503

Multi-Unit Information

• Other Income Description: RUBS
• Net Operating Income: $185,233
• Average 3 Bed Area Units: Sq. Ft.
• Average 2 Bed Area Units: Sq. Ft.
• Average 1 Bed Area Units: Sq. Ft.
• Sq. Ft.
• Total Building Area: 23,789
• Gross Scheduled Income: $365,887
• Gross Multiplier: 14.49
• Gross Income: $373,736
• Laundry Income: $2,270
• # Of Separate Gas Meters: 13
• # Of Buildings: 1

his area has become increasingly popular to those priced out of nearby Westside markets such as Venice and Santa Monica, so much so that this area made the top 10 of Curbed LA’s recent list of, “Where LA Home Prices Increased the Most, ” with a 118 percent increase in median sale price between 2010 and 2019. The subject property is well-located in this



$5,300,000Price35Beds27Baths23,789 Sq. Ft.$223 / Sq. Ft.

L.A is a appreciation market, not a income streaming market. Is This deal worth even thinking about. You are looking at 30,500 per month rental income. I do like the 1 percent rule however it does not work in Los Angeles. 

Thanks,

Jim

[Lee Ripma]

@James Oswill

What is your value add strategy? How will you increase the income? Income all hits at a 15 GRM so that's the play. What's the price per SF? You'll never find the 1% rule in LA when you buy.