We have this really interesting property for sale- 862 & 872 Laine. It’s a 4-plex and a single family home on the same APN- a great investment, and here’s why!
This property has a ton of potential. We’ve heard a lot of investors talk about splitting the properties. If you were to do a lot split between the properties, you could have advantages in your refinance. The single family home could be refinanced as an owner occupied and the 4-plex would qualify for 30-year fixed debt, it would no longer be a commercial loan. Another huge advantage with that, is it gives you the ability to sell one of the properties and keep the other one. So, if your idea was to renovate the single family home and potentially flip it or spec- build it, you could do that while retaining the 4-plex. Another huge advantage we have is the carport garages. Traditionally, when people think ADUs they think ground-up construction, which would cost about $300-$350k in total build costs. Now, we find that when you convert an existing carport or garage those costs are dramatically increased- somewhere in the ball park of $125-$175k, on an average of about $150k. now the idea here is if you were to do a lot split and have a 4-plex, you could get 30 year fixed debt and then do 2 ADUs making it a 6-unit complex with a standard residential 30 year fixed loan. There’s huge upside there on any value add, split, spec build or a long term hold. And in terms of long term appreciation, the property is very unique in one aspect- they all are independently water metered. So eventually when someone wants to come along to build luxury condos, next to the aquarium, with huge ocean views, and make a beautiful development, this is the perfect opportunity. The water meters are there, the land is there, and the ocean views are there!
This is a great investment opportunity!
If you have any questions about investments or this property, please reach out!
