Offer on a 1925 "Historic" House in Los Angeles

[Emerson Miranda]

Dear BP's,

I just had a meeting with an owner of this 1925 House in a Hippie Area of LA.

Musicians, actors, artists, love the vibe of this house.

It's a 2/1 with a backyard, pool, unpermitted guest house/studio/garage with bathroom.

I'm thinking about making an offer for about $700k.

With a $50k rehab to basically update plumbing, kitchen, bathroom, and landscaping, the ARV would be around $850k to $900k.

But, once it's a desirable architecture, and area, kind of a 'historic', and getting a $6,600 rent, should my ARV to be higher?

Should my offer be higher?

It could be a nice Buy & Hold Property, once it rents for so much. And the owner has an offer for another year rent of $7k, just the way it is.

I'm dealing with an "antique house", and not sure about the real value.

Any experiences with the same kind of property?

Regards,