This loan is a first deed of trust on the purchase of a four-unit multi-family property in Los Angeles, CA. The loan will include an additional cross collateralized golf course front single family residence in Rancho Mirage. The multi-family property contains four units with a total gross building area of 3,915 square feet on a 6,550 square foot lot. It is located in the heart of West Hollywood, walking distance to Santa Monica Blvd. and Melrose Avenue. Melrose Avenue is a shopping, dining, and entertainment destination in Los Angeles that starts at Santa Monica Boulevard, at the border between Beverly Hills and West Hollywood. A prime location for optimal Los Angeles Living!
The two lower forward-facing units are both 797 SF with 1-bedroom and 1- bathroom each. One unit (unit 4) is in average condition with hardwood and vinyl flooring throughout and no recent upgrades. The other (unit 3) is in good condition and has been slightly updated with new tile flooring in the kitchen, and a new shower and sink in the bathroom. Both are presently leased with long time tenants generating $854 and $1,649 per month in rental income, which makes them both under market rents. The average market rents for these types of units are $1,650 and $1,750 per month. Above these two units is a large 3-bedroom, 1-bathroom unit (unit 1), which is 1,535 SF. It is currently vacant and in need of a renovation throughout, but has a projected market rent of $3,500 per month. The fourth and rear unit (unit 2) is built above the 4-car garage. It has 2-bedrooms, 1-bathroom, 786 SF, and is in average condition. It has ceiling fans, newly refinished hardwood flooring, and a large side deck patio. It is currently vacant with a projected market rent of $1,800. If all units were rented at market rates, the Quadruplex annual income would be $104,400 before expenses. The Borrower is purchasing the property for $1,860,000 with plans to renovate and lease the vacant units.
Net Yield to Investor