Redondo Beach Income Property

Redondo Beach, California income property is a desirable commodity and the supply is always limited. When a highly desirable property hits the market the one thing an investor can count on is there will be competition vying for ownership, and offers to purchase will be plentiful, and often over asking price. Last year saw an enormous surge in both properties available for sale and number of offers submitted. One agent's response to my question as to whether he had other offers was, "More than twenty." Our experience this year shows we can expect more of the same. This month we had one of ten offers on a Redondo Beach income property in a prime ocean close location.

Currently there are seven Redondo Beach income properties for sale ranging in size from two to 15 units. The price range is from $999,000 for a 2 unit property, up to $5,395,000 for a 15 unit complex close to the ocean. There are currently 12 Redondo Beach multifamily properties in escrow with accepted offers. Seven Redondo Beach income properties have sold year-to-date.

Redondo Beach is one of the three Beach Cities in the South Bay area of greater Los Angeles. Its prime coastal location makes it a popular rental area and consequently, a sought-after location for income property buyers. With its sandy beaches and coastal breezes Redondo Beach is a prime Southern California location, and savvy investors are always anxious to add a piece of Redondo Beach real estate to their investment portfolios.

Taking a quick look back at the history of Redondo Beach income property sales, per the Multiple Listing Service, since 1995 1207 income properties sales with a minimum of two units were recorded. The highest price paid was $8,100,000 in 2007 for a 32 unit complex located on the Esplanade with unobstructed ocean view.

For more information on Redondo Beach income property contact Norma or Josh at Charlemagne International Properties and we will add your name to our list of income property sellers and buyers in the South Bay, and provide you with a list of hand-selected properties matching your investment criteria.

- Norma Toering, Broker/Owner Charlemagne Int'l Properties
(301) 493-8333 - Email Norma

Redondo Beach Units for Sale:

Income Property - Terms

The analysis of income property has a vocabulary of its own. When you are looking over potential units for purchase, these terms will often be mentioned or included in the reports.

Cap Rate (Capitalization Rate) - Cap rate or "cap" is very similar to an interest rate, such as on a bank CD or savings account. Cap rate is the standard starting point when reviewing an income building. The property cap rate provides an expected annual income return percentage rate by comparing the income after expenses to the purchase price. Note that loan payments are not included because those would vary by each purchaser's terms.

• Cap Rate = (Annual Rental Income - Annual Expenses excluding loan payments) / Purchase Price.
• The simple version: Assuming a cash purchase, after expenses what kind of return could I expect on this building.

Gross Rent Multiplier (GRM) - Gross rent multiplier gives a snapshot of the ratio of purchase price to the rents. The gross rent multiplier is a simple tool to quickly compare buildings to each other. With an average GRM for a neighborhood or city, you can also compare a building to the surrounding competition. GRM ignores all expenses which is why it uses the gross operating income.

• Gross Rent Multiplier = Purchase Price / Annual Gross Income
• The simple version: How many years would it take for me to make back the purchase price at the current rental rates and not paying any expenses.

Operating Income - This comes in two formats, gross and net, which are usually presented in yearly totals. The gross operating income is the sum of all rental and other income the property generates. The net operating income is what remains of the gross income after expenses have been deducted.

Expenses - Some unit listings will include the yearly expense numbers or percentage, though it is rarely very detailed. Once an offer is accepted you should review the last 12 months of accounting reports from the owner or their property manager. Utility bills, upkeep and general ownership costs should be listed along with details on rental and any other income generated by the property.  

 - Josh Toering (310) 525-9440 or Email

Duplex for Sale in San Pedro

1027 S. Centre St

Spanish charmer aptly describes the front house with its courtyard entrance, tile roof, cove ceilings, fireplace, hardwood floors, tiled bathroom and the list goes on. The spacious kitchen with glass front cabinets and tile counters has a breakfast nook. A formal dining area, living room and two bedrooms plus a full bathroom with tub and shower completes the one-level living area with artisan craftsmanship apparent throughout. Many original doors and fixtures throughout. The back house built in 1940 enjoys front courtyard, large porch, hardwood floors, tiled bathroom and two bedrooms. Both houses have ample basement storage. Current owner re-built one car garage, replaced some windows, security doors and other upgrades. Both units are leased. The property is zoned Store and Residential but currently functions as two-on-a-lot with a 1-car garage.

• 1027 Centre St, San Pedro CA - Full listing information
• Annual Gross Income: $28,200
• Annual Net Income: $21,020
• Cap Rate: 5.19%
• Gross Rate Multiplier: 14.4
• Currently listed at $405,000

Rents:

• 2/1 Front Unit - $1450/month
• 2/1 Back Unit - $900/month

For more information give us a call or an email.

Norma Toering, Broker-Owner (310) 493-8333
Josh Toering, REALTOR (310) 525-9440

More information on South Bay income property - San Pedro units for sale

El Segundo Income Property - Jan 2014

El Segundo had a busy year in income property. While the total number of units selling was less than one per month, the buyer interest level increased as the Beach Cities prices drove investors to look north for deals.

El Segundo unit sales statistics for 2013:

• Available buildings: 4 Properties are for sale from $999,000 to $1,599,000.
• Pending sales: 1 Building is in escrow priced at $3,800,000.
• El Segundo sales: 9 Buildings sold in 2013 from $725,000 to $3,325,000. The average price was $1,312,000. The average year built was 1960. None of the 2013 transfers were a distressed sale.

El Segundo income property building types (2013 Sales):

• Duplex – 44%
• Triplex – 22%
• Fourplex – 11%
• 5-8 Units –11%
• 9+ Units – 11%

Total unit value sold in El Segundo in 2013: $11,807,000
Average gross rent multiplier for El Segundo 2013: 15.3
El Segundo unit cap rate for 2013 at 75% net income: 4.90%

For more information on available El Segundo units for sale, please give me a call or drop us an email.

 - Josh Toering (310) 525-9440

 El Segundo income property for sale:

Manhattan Beach Income Property - Jan 2014 (2013 Statistics)

Manhattan Beach had a phenomenal year in 2013 for income property sales.

Beach cities summary: The surging housing market of the Beach Cities combined with the limited availability of buildings for sale, made for a competitive buying environment. Multiple offers were the standard and "all cash" deals the trump card.

Manhattan unit sales statistics for 2013:

• Available buildings: 1 Property is for sale at $3,150,000.
• Pending sales: 1 Building is in escrow priced at $999,000.
• Manhattan Beach sales: 23 Buildings sold in 2013 from $960,000 to $3,800,000. The average price was $1,915,000. The average year built was 1953. None of the MB unit transfers in 2013 was a distressed sale.

Manhattan Beach income property building types (2013 Sales):

• Duplex – 57%
• Triplex – 13%
• Fourplex – 9%
• 5-8 Units – 17%
• 8+ Units – 4%

Total unit value sold in Manhattan Beach in 2013: $44,047,000
 Average gross rent multiplier for Hermosa Beach 2013: 22.4
 Hermosa Beach unit cap rate for 2013 at 75% net income: 3.34%

For more information on available Manhattan Beach units for sale, please give me a call or drop us an email. - Josh Toering (310) 525-9440

 Manhattan Beach income property for sale:

 

Hermosa Beach Income Property - Jan 2014

Hermosa Beach had a very hot year for income property.  The surging housing market of the Beach Cities combined with the limited availability of buildings for sale made for a competitive pricing environment.   Multiple offers were the standard and "all cash" deal the trump card.

Hermosa unit sales statistics for 2013:

• Available buildings: 5 Properties are for sale from $859,000 to $2,200,000.
• Pending sales: 3 Buildings are in escrow priced from $799,000 to $2,699,000.
• Hermosa sales: 20 Buildings sold in 2013 from $660,000 to $3,022,500.  The average price was $1,396,000.  The average year built was 1951.  Only one of the 20 transfers in 2013 was a distressed sale.

Hermosa Beach income property building types (2013 Sales):

• Duplex – 95%
• Triplex – 5%
• Fourplex – None
• 5-8 Units – None
• 8+ Units – None

Total unit value sold in Hermosa Beach in 2013: $26,900,000
Average gross rent multiplier for Hermosa Beach 2013: 24.1
Hermosa Beach unit cap rate for 2013 at 75% net income: 3.1%

For more information on available Hermosa Beach units for sale, please give me a call or drop us an email.

- Josh Toering (310) 525-9440

Hermosa Beach income property for sale:

Harbor City Income Property

Harbor City is popular with first time income property buyers for its affordable prices compared to other parts of the South Bay. As part of Los Angeles, it has the same rent control rules.

Harbor City units statistics for 2013 year end:

• Available buildings: 4 Properties are for sale from $425,000 to $1,300,000.
• Pending sales: 2 Buildings are in escrow priced from $355,000 to $459,000.
• Harbor City sales: 12 Buildings sold in 2013 from $281,999 to $860,000. The average price was $483,000. The average year built was 1952.

Harbor City income property building types (2013 Sales):

• Duplex - 33%
• Triplex - 33%
• Fourplex - 25%
• 5-8 Units - 8%
• 8+ Units - None

Total unit value sold in Harbor City in 2013: $3,480,000
Average gross rent multiplier for Harbor City 2013: 12.2 
Harbor City unit cap rate for 2013 at 75% net income: 6.19%

For more information on available Harbor City units for sale, please give me a call or drop us an email.

 - Josh Toering (310) 525-9440 

Harbor City income property for sale: