14837 Delano St
The LA Apartment Advisors are proud to present these 8 units located at 14837 Delano Street in Van Nuys, California. The property is comprised of an excellent unit mix with one, studio/1-bath unit and seven, 2-bed / 1-bath units. The offering is situated on a 7,503-square foot lot with 6,489-square feet of gross rentable area, and it features individual meters for gas and electricity with copper plumbing throughout.
With a recent vacancy of a low paying tenant, this property is now offered at a 5.00% CAP rate. The vacant unit will be kept vacant for the sale; however, if a buyer or the buyer's lender wishes to rent out that unit during escrow, the seller will accommodate. Furthermore, even after the vacant 2-bed unit is rented at market rents, there is still an estimated additional 21% upside potential in rents, allowing a savvy investor the opportunity to get in with a good day-1 return, and still have the widely desired value-add opportunity in one of the most dense rental pockets in the San Fernando Valley.
With today's historically low interest rates, an investor would only need an approx. 33% down payment ($594,000) to receive an interest rate of 3.85%. With this loan quote, an investor would have a day-1 cash-on-cash return of 3.72% and a total return of 7.39%, after principal reduction.
Van Nuys is located in the central San Fernando Valley region of Los Angeles and is strategically located near pockets of economic and development activity. It is home to the Van Nuys Airport and the Valley Municipal Building and is the only neighborhood in the San Fernando Valley with a population exceeding 100,000 residents. This quiet and up and coming area with great location allows residents to find work in the local business sector, direct access to the 405 freeway as well as Amtrak and Metrolink rail which gives easy access to commute to downtown.
This offering provides a savvy investor the rare opportunity to receive both good immediate cash flow and the real opportunity to capitalize on the remaining 21% upside potential in rents.