When I re-position a building, the numbers often look something like this: I buy the building for $1MM, spend $500k on renovating it, and then ask a lender or buyer to believe that the building is now worth $2MM, based on the rents I am achieving from the new tenants. Now, obviously, the lender or … Continue reading “How you get them to believe a $1MM building is now worth $2MM”
Category: Income Property Benchmarks
Got cash? Larger buildings are better than smaller ones
Right now, if you have the cash to put down a big downpayment, you’re almost certainly better off buying a larger complex versus a smaller one if the prices are the same.* Why? Like almost everything else in real estate, it comes down to interest rates, affect the market in two discrete ways right now: … Continue reading “Got cash? Larger buildings are better than smaller ones”
Miracle Mile Apartment Rules of Thumb
Have been spending a lot of time looking at 2-4 unit apartment buildings in the Miracle Mile area recently and let me tell you: That is one ridiculously hot market. First, let’s define what we mean by “Miracle Mile”: It’s the area loosely bordered by Wilshire to the North, Pico to the South, La Brea … Continue reading “Miracle Mile Apartment Rules of Thumb”
The numbers are in: South of the 101 is better than Silver Lake
On the numbers alone, buying income property south of the 101 beats buying in Silver Lake. There, we said it. Before we get to the numbers, the area we’re talking about includes part of Westlake/Historic Filipino Town and the southern part of Echo Park. We’re going to call it…”South of the 101″. Here’s a map: Here’s … Continue reading “The numbers are in: South of the 101 is better than Silver Lake”