In July 2018, we purchased a three-bedroom, two-bathroom home in the Glassell Park neighborhood of Los Angeles for roughly $737,000. Our initial business plan was to rent the property for seven to ten years with the intention of generating consistent cash flow while participating in the appreciating home values in the area.
Before beginning minor renovations to increase the home’s marketability, we saw interest from buyers who were interested in building multiple small lot homes on the property and elected to pivot from our initial strategy, selling the property for $995,000 in January. After closing costs, this investment generated a profit of approximately $184,000.
In under six months, we earned a net return of roughly 23%.
This is one of several homes we’ve purchased in Glassell Park. Although this investment performed exceptionally well, we want to maintain reasonable expectations of the performance of our additional assets in this area. That said, this quick turnover could be a good leading indicator for the strong performance of neighboring assets.
We look forward to providing further updates as we continue to grow your portfolio in Los Angeles and across the country.
