Santa Monica Keeper in Sunset Park

[Michael Behmke]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $2,801,000
Cash invested: $850,000

Added to our collection with a wonderful turnkey property in the Sunset Park neighborhood of Santa Monica. Was able to close a loan with David Green's One Brokerage and Allen Marshall was great. I must say, however, "rent control" is fascinating! Looking to add another four unit in the same area if anyone is interested in dropping us a note.

What made you interested in investing in this type of deal?

We earn our income assisting others with their investments/second homes in Key West and are now investing between Santa Monica (for potential appreciation) and Columbus Ohio (for stability and cash flow). This is our first in the LA area and we look to add more A+ four unit to our portfolio.

How did you find this deal and how did you negotiate it?

We used the services of the listing agent to help us win with two other offers. Given the market at that time, we had to strip the offer of contingencies and pay over asking.

How did you finance this deal?

We used the One Brokerage and were able to land a 70% loan.

How did you add value to the deal?

Since three of four units were totally renovated we only need to work on one in the future. There are five garages for four units, so an ADU is a potential down the road. Our biggest win will be utilizing cost segregation for advanced depreciation in year one which at the moment looks to be offering approx. $235,000 tax savings.

What was the outcome?

We have an A+ asset in an A+ neighborhood with garages for all. Now, if we can get the rent control under wraps.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Allen Marshall and the One Brokerage for our loan. His team was great.