3210 Bellevue is done

Signed the last lease on Monday. We’re at $122,160 / year gross, a bit better than I expected when we bought the property last summer.

I’m estimating the unlevered yield at around 8.7% / year… not amazing, but definitely a big win in today’s market.

If lending markets were rational, I’d be able to refi out a bunch of cash, something like:

  • Pull out $1MM in cash and return it to my investors
  • Interest rate of 4.75%
  • Annual debt service of $63k
  • NOI of around $96k
  • Free cash of $33k
  • Around $100k of cash remaining in the deal
  • So, $33k / $100k = 33% levered return

Irritatingly, banks are really painful about cash out refinancings, particularly for 1-4 unit properties.

I’ll probably hunt around for some options and then compare them with what I can get from just selling the deal.

If you know of a bank that understands Silver Lake / Echo Park and makes 1-4 unit loans, drop me a line!