Help newb: cap rate for multi-unit property in LA?

i was actually shocked at how the condo market in west la is actually weakening for the first time.... there is suddenly tons for sale in my area for under 500k, last year this time there was nadda

however saying that it seems like the money is to be made in selling them?

I would say what you could try list these units at would be

3 x 400k

1x 550k

1 x 650k

this would be after cleaning them up for about 50-100k is my guess

and then I dont know what they would actually sell for.... but on paper there may be a big profit to make on selling them individually

dunno how long it takes to kick the tenants out and change the zoning things?? does this need to be done etc etc etc

 

With increased supply it will take longer for them condos to sell and thus larger holding costs.
At the same time the prices are more likely to fall and not putting you in a good position to sell condos.

I live in SD and they now significantly restricted condo conversions because of all the supply.

That is not a market I would want to be in right now.

 

JG, correct me if I am wrong, but you need all sorts of paperwork and admin headaches and missions to convert rental units into for sale condos in california?


basically this building looks like the black hole of money lol

 

I haven't dont a condo conversion myself but I would image it would be a lot of work.

I would play with the numbers and figure out the ROI you expect to get on this investment and then decide if it is worth all the effort.

If you have any real estate related questions check out the following website:
www.sdcia.com and go to the message board. There are a lot of talented people on that message board that can answer specific questoins.

 

It might be a great board, I'm not saying it isn't. But this (from the front page) doesn't really fill me with confidence:

Tony went from bankruptcy to $10,000,000.00 in seven years working with just three of these Agents in one of the lowest-priced Southern California Real Estate Markets. This is no doubt the "lazy man’s way to real estate riches". And he’s getting ready to do it again!