Surprise outcome in Los Angeles Midcity!

[Paula Keathley]

Investment Info:

Single-family residence buy & hold investment in Forestdale.

Purchase price: $560,000
Cash invested: $310,000
Sale price: $1,700,000

Full home renovation + ADU garage conversion

What made you interested in investing in this type of deal?

Affordability of the area compared to others in LA with high rents

How did you find this deal and how did you negotiate it?

Previous owners were evicted due to loan default. Many other cash offers at original sale price of 510,000. Went in with best and final of 560,000 to get the property.

How did you finance this deal?

Had cash for down payment. Rented rooms in home to pay for ADU.

How did you add value to the deal?

Added ADU which leased for $2,000 just prior to sale.

What was the outcome?

Sold 7 years after purchase for a profit of $815,000. We had 17 offers and sold for 300,000+ over asking. Staging is expensive but in certain areas, it will bring the value of your home way up if people can visualize themselves in the home. We forked out $10,000 for staging and I’m sure that’s why the house sold for so much over asking.

Lessons learned? Challenges?

Try to maintain the original character of big homes. Call references for big jobs. It’s very hard to find a good roofer in Los Angeles. Expect your job to take longer than anticipated. Find a good real estate agent to get you the best sale price.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes!

Emily Neri with Christie’s Real Estate

[Tim Ryan]

Paula, well done!  So Cal is good for appreciation.  Of course, you made this one appreciate by adding value. This is a Home Run! Bravo.