12950 5th St, Chino, CA 91710

Property Description

12950 5th St is a 'Pride Of Neighborhood' apartment complex in a purely residential area of Chino California. The living area is 7,640sf with an oversized 11,502sf lot. There are 8 X 2bd/1ba and 2 X 1bd/1ba. All units are large and airy with good natural light. Eight of the ten units have remodeled kitchens and all units have various updates completed, such as updated plumbing, bathrooms, windows, flooring, and paint. Roof has a new layer added less than 3 years ago. There are abundant 13 covered parking spaces and 3 uncovered spaces (16 total), allowing a savvy investor to take advantage of new ADU laws, converting some covered parking into TWO additional units! Because of the residential surrounding area, there is always ample street parking. Offered at a high cap rate (5%), 12950 5th street provides consistent cash flow, low maintenance, with a rental upside and ADU upside. 10 units are currently generating $19,600/mo gross revenue and net around $13,340/mo after all expenses, including property taxes, property management, insurance, utilities, trash, and various licenses. Year 2 NOI is 5.50%, and Year 3 NOI is 6.01%, assuming annual rent increases of 7.5%. Since AB1482 limits rent increases to 5% + CPI (cost of living/inflation), the limit should be higher over the next several years. Rental demand in this area of San Bernardino county is very strong. Tenant profile is middle class, working families, with consistent income. 2019 census states Chino, CA has a population of 89,631, median household income $81,711/yr, and average age 37.6 yo. Chino is considered superior to neighboring cities such as Montclair, Pomona, Ontario, Upland and Corona. Chino also neighbors its sister city Chino Hills, which has recently experienced significant increases in property values. Buyer responsible to perform all due diligence themselves, and the property is sold in as-is condition.