https://www.redfin.com/CA/Palo-Alto/702-Clara-Dr-94303/home/1222164
But it’s 1M above the price they paid for 2 years ago.
Seller claimed each unit can be rented for 4K. So total rent income is 16K per month. Cashflow is tight, but not insane.
2 years price increase is 40%, almost 20% YOY increase. Sellers was expecting 80%, but the buyer is full cash offer. Full cash offer is always touch on negotiation.
To me, this 20% YOY itself great for seller.
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I don’t think these units can rent for $4K; rental market has cooled down quite a bit, probably $3K for each unit.
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$4k is probably a bit high for 2 bed 890 sq ft; no mention of bath, so assume 1 bath. Probably can rent for $3200+.
The location is great; very convenient and walkable to midtown shopping center. The schools are great. Basically PA schools are all good, so doesn’t have to worry about school boundaries and nearby schools.
For someone with enough funds to buy, seems good deal to live in 1 unit and rent other 3 out. Or rent out all 4 units.
That is crazy low. There’s got to be something going on there.
[EDIT! OOPS! I misread the sales price as $1.425M]
What I don’t understand is how they state the gross
Income at 210k when 12x16k is only 192k (and that is assuming each unit rents at 4k … 16k a month)
12 x 4.x. $3k would actually be much much lower…144k… subtract their stated 51k expenses and you net 93k.
What did it sell for? 3M? 3.3% cap.rate. not uncommon in prime locations
Edit: sold 3.5M. So it is 2.6%. Not my type of investment.
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Only 3K for a 2/1 in PA? Rent is not that high then. In SF we are easily talking about 4.5K.
3/2 with a little more square footage can probably rent for $4K and change, but no way for a 890 sq ft. 2/1 in PA.
Can the buyer tear down and build a 4 unit townhouse with 2000sf each? Will it be profitable?
Lot is 10k, it could also build 8 unit condo if PA approves.
If Mr Z of Facebook fame/stature/money can’t get it done in PA, NO ONE can…
PA will never approve.
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