4plex in Los Angeles - BRRR Analysis

[Victor Ong]

Hi,

I am in escrow on a 4plex property in Los Angeles and would like to run a sanity check with the experts in this forum on my analysis. Please fee free to comment.

Contract Price: $532,500
Closing Cost: $10,650
Total Cost: $543,150
Gross Operating Income: $49,488
Net Operating Income: $28,587
Cap Rate: 5.26%
GRM: 10.98

Rehab Cost: $150,000
AFR: $800,000
Pro Forma GOI: $67,200
Pro Forma NOI: $39,141

My primary goal is to gain the net equity increase based on the AFR through rehabbing. My second goal would be holding the property for long by cashout-refi through Interest Only 10/1 loans. My ideal vesting period would be 7-10 years.