It’s Too Bad This One is So “Overpriced”…!
As someone who specializes in the sales and management of residential “investment” real estate I make it a point to go out regularly and preview a lot of property to keep up with the market.
A Four-Plex at 3632 Hallelujah Court, Carmichael came back up on the market just a few days ago for a whopping asking price of $688,000. That price is lower than the original list price of $725,000. The scheduled gross annual income they are showing is $51,384 which gives this property a GRM (Gross Rate Multiplyer) of 13.38. With a GRM that high it’s not going to be possible to get a cash flow without a monster downpayment if you need some financing to complete this deal.
Why they are listing this property for so much is beyond me especially when there’s an exact copy of this unit at 5720 Engle Road that closed escrow last October for $495,000.
Click Here For More Information, incuding a “pro-forma” cash flow analysis on the Engle Four-Plex
The Seller of 3632 Hallelujah Court owns the property “free and clear” by the way. They didn’t raise the price just to cover an existing mortgage.
If you want to compare them, below is a video of the exterior of the property and the one at Engle. What do you think…? is the Hallelujah property worth almost $200,000 more…?
My conclusion…? Based upon their “scheduled” income and the GRM established by the sale of the Engle Four-Plex, I think the best the Hallelujah owners can expect as a reasonable offer would be nothing higher than $550,000.
Make a comment here and let me know what you think.
In the Mean Time…?
Make it a Great Day…!
Ed Favinger, Broker CRS, GRI, SFR, CDPE 916-203-1260 email@example.com
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