Welcome back to another Multi Family Monday, hopefully you had a chance to read over last week’s posting.

This week it was not too hard to pick the best because believe it or not only 3 bank owned Multi Units came on the market. 1 in Hemet Ca and 2 in San Jacinto Ca both cities are about 30-45 minutes away from the heart of Temecula depending on traffic of course.

While looking through these it surprised me to find a 4 unit apartment in Hemet for only $165,330 whereas only 2 – 2 ½ years ago those same buildings were going for more than $600,000!

So needless to say this 4-plex located at 26390 Olive Dr in Hemet is my pick for the week!

Figured I would also run through some basic numbers for how this investment should perform with the correct management.

We will also assume, you didn’t authorize me to represent you in the purchase and therefore paid the full price of $165,000.

Now that we have the base price we will also state you are the worst case scenario meaning an investor which in turn is going to be a higher interest rate and larger initial investment.

Purchase:		$165,000

Initial Investment: $16,500

Balance:		$148,500

Mortgage Payment:	$1,200 (roughly at 9%)

Taxes:		$210 (roughly)

Water:		$100 (usually 1 water meter)

Insurance:		$60 (roughly)

Management:		$120

Total Expenses:	$1,582 (using these rough numbers)

Each unit is 2 bedrooms and 1 ½ baths, which means if they were rented to Section 8 Tenants would get roughly $900 per unit each month.

    Income Per Unit:	$900

Number Units:	4

Monthly Income:	$3,600

Vacancy:		$360		[10% (tough economy be safe)]

Net Income:	        $3,240

Potential Monthly Cash Flow in Southern California: $1,658!

This means you have the opportunity to make back your initial investment within the 1st year and be like no money down after that!

Question, comments or would like to find out more about this or any other property in Southern California please either call or email, I would be honored to help you find a perfect investment!

Until Next Time!

God Bless,

Tim Taggett
Serving with Honesty and Integrity!
Building Dreams Through Real Estate!
Temecula: 951-240-5645
Email: RetireEarly@live.com

“All hard work brings a profit, but mere talk leads only to poverty.” -  Proverbs 14:23

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