Great Deal Alert
There are pitifully few honest to goodness flip opportunities these days in L.A. (that might or might not change in the wake of the fires, we really don’t know.) Yet, I finally have a good one I can present to you, as follows. Our thoughts and prayers are, of course, with everyone who has been impacted by the fires. Possibly this home will end up belonging to one such family. Here are the specifics:
This is a 1037 sq ft 2 bed 1 bath fixer home on a 10,444 sq ft view lot. There is a slope in the front and a slope in the rear; however, the portion of the property on which the home sits and where you will be adding square footage is flat as a pancake, and thus a relatively easy project. The owner is a designer and she has plans (not yet approved by the city but very approvable) to add 500 sq ft to the home in the form of a very large primary (master) suite and a hallway that will connect the suite to the rest of the home. The suite will include a very large bathroom and very large walk-in closet. Her plans also include adding a 400 sq ft ADU that will sit over the garage. The beauty of this configuration is that the garage is at street level, well below and far apart from the main home. Thus it will act like a totally separate dwelling and will not infringe on the enjoyment of the main home at all for the owner of the home. Yet it will yield $2500/mo to defray the mortgage.
The projected approximate cost of renovations, additIons and ADU is $500,000. If it sells for $2.1 million and if you deduct $300,000 for soft costs, holding costs and closing costs that puts you at $1.8 million. Deduct sale price ($900K) and renovations cost ($500K) and that leaves you with $400,000 profit. Since your addition is going to be slightly less than 50% your time to get the plans through the city will be relatively short.
It is the owner’s intention to execute this plan herself, but if someone will step up to the plate and purchase the property for the $895K as-is, she will very likely hand it off to you for you to execute the plan (or execute your own plan if you like.) The property is in a nice part of HIghland Park and is walking distance to all the shops and restaurants on York Blvd in and around the 50’s Avenues. Also, very close to the Occidental College campus. And it has awesome views to the north and the west. Plus there is plenty of bucolic yard behind the home as well as plenty of flat usable yard to the side for children’s play area and/or entertainment. In summary, it has all the elements an end user is going to be seeking.
OK, if you are interested please give me a call asap and I will be happy to help you out.
Best,
Ken Shapiro,
Silverwood Properties – 818-237-6963
