5742 N. Elmer Ave, North Hollywood, CA
7250 square foot lot.
The Investment Strategy: Buy and Rezone
The property has multiple apartment complexes dotted along the street. The home was built in 1920 and is a prime candidate for demolition. Buy the property, apply for a rezoning to multifamily which would allow the building of an apartment complex. Then, either sell the property for a profit to developers or complete the construction yourself.
This is an advanced strategy and is not recommended for beginning investors. The profits for this opportunity are not easily quantified because the cost of holding the property before it is rezoned can be substantial. Additionally, construction costs and zoning compliance can be highly variable and are beyond my expertise. To minimize costs, the property could be rented out for at least the mortgage payment.
The Location: Right off of Lankersheim
Walking distance to many, many desirable renter-friendly businesses. This particular street has a ghetto feel to it, with multiple males standing around together on the sidewalk before 5:00 PM. There is new construction on this street and new businesses popping up within a short walk. As rental rates rise, the less desirable elements should be squeezed out. Available parking is sparse.
To view this property, call me at (818) 726-5982. You will need at least 10% down payment to buy this property ($42,500). To view more properties online, click here
Alternate Strategy: The property is currently zoned R1.5, meaning that the owner has a right to build a guest house on the property. To cash flow the property, build the guest house and rent it out for additional income while applying for the rezone.
Guest House Tips: There are 3 things you need to do to optimize the income from a guest house. 1) Create Privacy 2) Give each unit its own yard 3) Give each unit its own separate entrance. Do these three things and a full guest house (with kitchen and bath) should double it's rental value.
