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Property Description- 1005 Trouville
This week’s property is an attractive, very livable triplex, located south of Grand Avenue in Grover Beach. Each single level, 2 Bedroom, 1 Bath unit has a large fenced backyard and single car garage. Great curb appeal. Projected repairs and maintenance are low as seller has recently updated kitchens, replaced rear sliding glass doors, and replaced the roof and flooring in each unit. Located in very strong rental area with below market rents. Currently 100% occupied. On site coin operated laundry. The current annual income is $36,940.
Property Analysis-1005 Trouville Ave
THIS WEEKS SPREADSHEET ONLY REPRESENTS THE BEFORE TAX ANALYSIS, ALL FIGURES REPRESENTED BELOW ARE BASED ON THE AFTER TAX ANALYSIS
At the asking price of $579,000 a minimum 25% down payment (generally required for an investment property) would require the buyer to make an initial investment of $144,750. These assumptions, combined with monthly expenses will result in a negative annual before tax cash flow of $1,371. However the after tax analysis results in an annual cash flow of $3,235 and assuming a 3% appreciation rate the investment it will yield a $20,600 annual net income. The cap rate for this property, based on current rents is approximately 4.59%. Rents, however, are low for the area. At market rent of $1200 per unit per month, the cap rate increases to 5.59% . GRM at current rents is 15.7.
(The values expressed are based on estimates and assumptions)
Property Conclusion- 1005 Trouville
This property offers investors a sound opportunity to enter the investment market on the ever popular Central Coast. The location, near beaches, the Pismo Dunes and many other recreational destinations will always attract renters and will be one of the first areas to appreciate as the economy turns around. The property is well maintained and upgraded and therefore will not likely require near term infusion of capital for repairs. Because rental rates are below market for the area, there is potential to increase monthly income immediately. Because of the livability of the units, with the large yards, this property will also appeal to the investor who may want to live in one unit and rent, or have family live in the other two units.
Over the past three decades, Patterson Realty has been a leader in sales and service that has produced one of the largest number of repeat clients and referral business in the county. Countless satisfied customers have enjoyed the benefits of this leading edge approach.
