Monday Money Maker - 17 Sept 2012 - Riverside Ca (Riverside County Triplex)

This week's Monday Money Maker really has me excited for a few different reasons, one being that it is located in the city of Riverside CA which is awesome for location. Another part I am excited about it is a fully rented triplex near UC Riverside which means getting tenants in the case a unit goes vacant should not be a problem. Like always the marketed price is higher that I would prefer but then again that's just the asking value not the true value or necessarily the final value of the negotiated acquisition.

Not a major deciding factor when looking at a multi unit however a huge plus is when it has a separate meter for each one of the units which this property does already have which is another great bonus. This particular Money Maker also has a very diversified set of units with one one bedroom, one two bedroom and one three bedroom which gives a good selection for any potential tenants however by reading any of my previous evaluations you know the safe value is based on the lowest rent received which in the case of so many different types of units that does skew the numbers slightly and therefore a reasonable offer would be based off the actual rents and not based off the lowest rent acquired.

Before I get into the value this property should be marketed at I will state the current marketed price of this triplex is at $240,000 which is about $32,000 more than a smart investor would want to acquire it for. That said the rents from smallest unit to largest is currently set at $550, $900 and $1,000 per unit each month. The safe value would be (once again slightly skewed) $93,500 and the Tim Taggett Value is $208,250 for this triplex in the very desirable rental market in the city of Riverside. With an initial investment of twenty percent and acquired for a reasonable $205,000 this property would net a cash flow just under $800 per month.

(T12115321)

Any questions or would like to discuss investment property give me a call directly 760-500-7292 or email at RetireEarly@gmail.com.

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Happy Investing!

Tim Taggett

DRE# 01468188

REI Powerhouse

Darryl Self, Broker