This is golden real estate - Not difficult to make $200,000 + DAMN ITS GONE
Flipper/Rehabber · Pasadena, CA · Member since 2020 · 45 posts · 16 votes
This location is amazing and you can easily add the square footage to get over 2 million at the sale after the remodel. The home next door just went $300,000 over asking. This is a good example of getting in and out in 8 months with more than $200,000 in profit. If your permitting is straight forward Pasadena is a good place to work.
Building for value add rental prospects could be even better. It is a location where you can get very long term high rents. Design your own value add project. Rent it out standard or to short term to tourists, hospitals near the property and an area where people go to retire. Walk to down town Pasadena and the Rose Bowl.
I'm uninvolved in any way. This is my area and I like it.
https://www.zillow.com/homedetails/149-California-Ter-Pasade...
The remodeled house next door went off market in 10 days and sold at $2.7mil and $300,000 over asking price: https://www.zillow.com/homedetails/161-California-Ter-Pasade...
Agree and agree! :)
Pasadena has been a great city for a long time and the crazy part is that it is growing even more.
They are building, essentially, another old town "like" area on Orange grove between Lincoln and Los Robles! It will take time but it will get there.
The last sections of Pasadena where you used to get "cheaper" homes at North West Pasadena (between Washington and Woodbury and Fairoaks and Lincoln) were homes used to be under $700k are now going for $900k as fixers and over a million when renovated or addition of sq ft!! The same with central Pasadena closer to Villa Park. I grew up in both these areas between 10-18 yrs old and have seen the city grow. These used to be the "hood" areas of Pasadena and they are still to some extent… but they are selling for $850k+ (the small homes that is… )
You can easily go to North West Pasadena and buy a home for $750k that is only 900 sq ft and add 1000 sq ft and an ADU and make that home's value jump between $1.4 to $1.6 (or higher in some cases). Rents are through the roof also. I have clients renting 400 sq ft ADUs for about $2,200 per month and climbing.
You can get great tenants willing to pay as you have Caltech, JPL, The hospitals, Medical schools, Private High Schools and Elementary schools all within the city!
The main issue with Pasadena is the high price of entry and long timelines for Building and safety permits.
You can easily take between 8 and 14 months getting permits and that's with a great drafter or architect (which we have).
I def. want to own something in Pasadena. Bc the $800k homes will be $1.5 or higher in the next 10 years +
and there are a lot of homes zoned for multi units. You could go from 1 home to 4 , 8 or 12 if you have the appropriate resources!
This is a good example of why flippers and builders are focusing on the higher end real estate. The cost of rehab is almost the same, whether it is in Pasadena or Pacoima. Cost of plumbing, drywall, electrical, etc. is the same. The difference is the land and finishes. However the land value is passed on in the overall value and the finishes is only a small percentage higher than Home Depot quality.
Where I am seeing some flippers screw up is the quality of the work is horrible and clients are noticing. I have clients who are interested in buying a flipped property but the investor didn't pull permits and added a bathroom. It has been sitting on the market and now my clients might be thinking of lowballing them. Had they spent a few thousand dollars on permits, then they would have likely gotten closer to their asking price.
This is a good example of why flippers and builders are focusing on the higher end real estate. The cost of rehab is almost the same, whether it is in Pasadena or Pacoima. Cost of plumbing, drywall, electrical, etc. is the same. The difference is the land and finishes. However the land value is passed on in the overall value and the finishes is only a small percentage higher than Home Depot quality.
Where I am seeing some flippers screw up is the quality of the work is horrible and clients are noticing. I have clients who are interested in buying a flipped property but the investor didn't pull permits and added a bathroom. It has been sitting on the market and now my clients might be thinking of lowballing them. Had they spent a few thousand dollars on permits, then they would have likely gotten closer to their asking price.
Rick,
I totally agree! There is no room for poor craftsmanship in getting top dollar for a property. Quality and craftsmenship are never a game or optional. Everywhere you see poor quality work it is an IMMEDIATE and justified RED FLAG. Cheap faucets, doors, knobs, lights and flooring show your intent. I know what good design looks like and I can't do that. So I make sure I get the right people involved who can. We pay for staging. Design and Quality matter in getting the highest profits.