Half of these sales were bank-owned duplexes (all closing at $439,000 or less). Two of the sales were probates.
Three multi-unit sales were for $1,000,000 and over and give an indication of the metrics at which income properties are trading in this neighborhood.

The building has 12,540 sq ft of living area (units average about 1,000 sq ft) on a 7,056 sq ft lot. Unit composition is 3 x 2 br, 2 ba, 3 x 2 br, 1 ba, and 6 x 1 br, 1 ba. Upgrades include hardwood floors and new appliances, tiled baths and custom finishes. Units are rented at market rate.
Gross annual income is $296,760, amounting to a 10.3 GRM (Gross Rent Multiplier = Sale Price /Gross Annual Rent). This GRM of consistent with the GRM recorded during the 1st Quarter of 2009.

This 1966 building has 9,934 sq ft of living area (about 1,000 sq ft/unit) on a 6,534 sq ft lot. Unit mix consists of 3 x 2 br, 2 ba, 4 x 2 br, 1 ba and 4 x 1 br, 1 ba.
Gross income is $105,900, amounting to a GRM of 12.0 on current rents. The seller notes that rents are currently 40% below market. This is the sort of long-term value-added opportunity that investors are seeking in the current market.

The 1959 building has 5,416 sq ft (770 sq ft average) of living area on a 6,969 sq ft lot. Unit mix is 3 x 2 br, 1.5 ba, 4 x 1 br, 1 ba).
Gross income is $91,447, amounting to a GRM of 10.9. Rents are well-below market, although it may take some rehab work to improve them.

Financing was 5% downpayment – 90% loan ($585,000) at 8.67% and 5% equity line ($32,500).
By May 2, 2008, not even two years later, the bank foreclosed upon the property and bought it at the trustee’s sale for $578,000. The equity line was wiped out in the sale.
New market. New buyers. The duplex was listed at $390,000 and sold for $365,000 42 days later, closing with a 25% downpayment.
How much was he loss? The bank loaned $578,000 and after foreclosing, and holding the property for almost a year, netted about $310,000 (after sales costs, management, etc.). A $268,000 write-off in three years' time.
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