Image by simonov via Flickr6224 Denny Ave, Los Angeles (North Hollywood), CA What is your investment strategy? Fix and rent.
$398,000
The Numbers: 10% down ($39,800) with a monthly payment of approximately $2,200 per month with insurance, taxes, and cost of interest on the $40,000 down payment from a home equity line of credit included. Will rent for a minimum of $3,000 per month after recommended work is performed (I can find you tenants that will pay more than $3,000).
The Terms: The offer should be full priced, as the home is priced very well. A 3% credit back to the buyer will help cover closing costs and renovations ($12,000).
Your Profit: $800 per month minimum
The Location: North Hollywood is going through a revitalization. The NoHo arts district is close by, with hip restaurants and entertainment. Nearby 3+3 homes that are like new are listed for $750,000. North Hollywood is one of the few Los Angeles areas with entry level homes selling for under $400,000. This property is located just north of Oxnard, and is on the edge of a very desirable area. The price is right.
The home statistics:
| Beds 3 | Baths 2 | |||||||||||||||||||||||||||||||||
| Style Contemporary | Stories One Level | |||||||||||||||||||||||||||||||||
| ASqFt 1,310 | YrBlt 1943 | |||||||||||||||||||||||||||||||||
| ALotSize 7,379 | ||||||||||||||||||||||||||||||||||
About Privacy:
Property already has plenty of privacy, which is one key to creating value and getting premium rents.
Recommended work:
Cut back overgrown plants all over property: $200
Clean up pond, add gold fish and lily pads: $100
Plant new landscaping in a few, select places: $100
Remove old furniture, plant waste, construction debris: $300
Plant new grass seed in front yard: $150
THE Feature:
The pool is THE feature for this property. Creating a feature such as a fish pond, pool, jacuzzi, or other centerpiece for the yard is a key element to creating value and obtaining higher than average rents.
The pond is already present, but in unimpressive, small, and poorly situated. The pond cannot count as the necessary feature because of its shortcomings.
Tip for ponds: Use gold fish, not expensive Koi. Renters may not feed the fish, may let the pond dry up, or simply not take proper care of fish. Gold fish turn wild and adopt entertaining behavior when put in an outdoor environment.
Tile floors throughout 65% of home with neutral, durable tile: $3,500
Repaint entire interior with neutral, sand colored paint: $750
Other property features: Enclosed patio that adds value to the property, not included in square footage. 1 carport. Detached garage. TONS of storage.
Kitchen is clean, no needed work. New counter tops would add value for resale, but not needed for the first two years of renting.
Total Fixing costs of $5,100
To open escrow, you need to write a check for $12,000 from your savings or home equity line of credit as your earnest money deposit.
$40,000 down payment
+ $5,000 renovation cost
- $6,000 credit (closing costs already removed)
= $39,000 required for this opportunity
Foreign investors without a credit history will need 30% down, or $133,333 to get a mortgage.
View more homes in North Hollywood: http://realvana.com/california/los-angeles/north-hollywood.html
To take this opportunity or to look for similar investment opportunities, call me at (818) 726-5982
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