Southern California Deal

[Jorge Ruiz]

Someone please help me understand how this is a deal. This is based on a property in the greater Los Angeles area in a city named Norwalk. The info provided is from a wholesaler Please note he states its a teardown and the asking price is more than the comps he provided which are larger properties than the subject property. SFR 2 bed / 1 bath 792 sf Lot: 8,599 sf Pickup Price: $475K Est Rehab: $775K After Repair Value: $1.8M ($450K per unit) Tear down existing home to build 4 brand new townhouses with 3 bed 3 bath and approx 1,500 sf each unit Comparables: 12307 Cheshire St # A Norwalk, CA - 3 bed 3 bath 1,322 sf Sold Price: $435,000 14786 Pioneer Blvd Norwalk, CA - 3 bed 3 bath 1,483 sf Sold Price: $422,000 12309 Cheshire St # C Norwalk, CA - 3 bed 3 bath 1,142 sf Sold Price: $417,000