Restored Craftsman in LA's neighborhood, Highland Park

[Justin Naoe]

Investment Info:

Single-family residence fix & flip investment in Los Angeles.

Purchase price: $700,000
Cash invested: $239,000
Sale price: $1,150,000

Purchased, restored, and sold. Held longer than expected since construction completed in Nov 2018. Rented property from Dec 2018 till May 2019 to help with carrying cost. Sold after 1 showing, not on MLS.

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

The size of the property was bigger than most recent sold. That gave me the confidence that it can hit a price point that would be profitable.

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

MLS. Timing was perfect for my offer to get accepted. Seller had fake buyers prior to me.

How did you finance this deal?

Conventional. Low carrying cost and low fees.

How did you add value to the deal?

Gut renovation inside and outside.

What was the outcome?

I would do this deal over and over again!

Lessons learned? Challenges?

City inspectors are difficult and can delay your project. Make sure deal is still profitable even if you have to hold longer than expected.

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

Nope. I found the deal myself. I'm a real estate agent that constantly looks for deal. I first presented this property to a client of mine, he passed, so I took it.