Collaborative sleuthing?

I’d like to try an experiment which will 100% definitely fail if you (my readers) don’t get involved. So, basically, I’m putting myself out here publicly and I’m going to have egg on my face if no one feels motivated to help.

Here’s the experiment: I’ve posted a listing below. I would like us, as a group, to evaluate the opportunity the listing represents.

I’m interested in answering all the questions that a buyer would ask before offering to buy the property, such as:

  1. At what price does this make sense?
  2. What’s the GRM?
  3. What’s the cap rate?
  4. Are the rents on market? Above? Below?
  5. Do the expenses look reasonable?
  6. Are there LAHD problems?
  7. LA Dept. of Building and Safety problems?
  8. Are the units permitted? The bathrooms? Bedrooms?
  9. What do we think of the area? Crime rates? Industrial nuisances?
  10. Is it rent controlled?
  11. Could you develop the land further?
  12. Are the schools any good?
  13. Is there anything going on in the neighborhood that we should worry about?

The concept is that we, as a community, ought to be able to work together to get a very good sense for the deal. And, in doing so, we ought to learn from each other about what it takes to get a good sense for an investment opportunity.

Please put questions and comments about the deal in the comments. There are no stupid questions. I don’t know everything. Feel free to chime in with answers. Together we’ll answer all the questions and learn.

Please please please get involved.

So, with that in mind, here is the (Loopnet) listing for 4417 Toland Way in Eagle Rock:

And here is the pdf of the offering memorandum: Toland Offering Memorandum

EDIT: For zoning info, check ; for Housing Department issues, search for LAHD and check under “code enforcement” ; for LA DBS, search LADBS and find the property activity report for the property. Come on – get involved!