San Diego Cash Flow, Flip, or Build New Multi

[Greg Wadsworth]

Hello BP -

I have a three-unit property under contract with a large buildable lot. My plan was to build out 5 new homes, but my circumstances have changed and I prefer to move to another project.

This is a great project for a house hacker, flipper, buy/holder, or developer of new inventory in SD. Collect good triplex rental income while developing the lot for buildout.

I've been looking at this under three separate scenarios:

Scenario A: Teardown and build on RM 1-1 lot. (15,814sf lot supports 5 units)

5 1,800sf units

3bdr/3ba 2-car attached garages

$2.4MM all in for acquisition, lot development, construction.

$3.125MM exit at $625k/unit ($347.22/sf). Pro forma and due diligence available upon request.

Scenario B: Buy/hold

$5,400/mo gross=$64,800/yr x14 GRM - $907,200 theoretical value.

Effective cap rate at purchase = 7

Value at prevailing cap of 4%, (at $47,620 NOI) = $1.19MM

Will require some rehab.

Scenario C: Flip

Purchase: $660k

Rehab: $60k

ARV: $930k

Happy to share analysis and due diligence upon request.

I have this property under contract  right now, closing set for 1/24, but could be extended. Here's the listing:

https://www.redfin.com/CA/San-Diego/7478-Hyatt-St-92111/home/5225746

Thanks for taking a look and considering.

Serious buyers only please. Must be able to close in 7-10 days