As part of our broader strategy of buying homes in high growth markets, we’ve directly acquired a four-bedroom, three-bathroom home in Los Angeles for roughly $718,000.
Business plan
Following the completion of minor renovations, we intend to rent the property for seven to ten years before putting it on the market. The goal is to earn consistent cash flow from rent payments while capturing what we believe will be continued strong appreciation in home values in LA’s emerging neighborhoods.
As always, if you have any questions or feedback, please visit our help center or reach out to us at investments@fundrise.com.
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A brief note about how we’re navigating the coronavirus (COVID-19) pandemic
Though black swan events like the current coronavirus pandemic are impossible to predict, nearly every decade has experienced some form of significant economic disruption. Recognizing this, we’ve spent the last several years structuring our investments to withstand a sudden and prolonged period of distress. Given today’s extreme uncertainty, we have begun taking decisive action aimed at further fortifying your portfolio.
In the immediate term, we expect to limit most new acquisitions and instead anticipate holding more cash in reserve. We plan to focus on pushing our existing projects forward and, in rare instances, look to deploy strategically into properties — like this one — that we feel are particularly well suited to withstand near term stress or even benefit from the current disruption in the market. As we continue to monitor the ongoing effects of this disruption, we expect that over time having additional cash reserves on hand may allow us to capitalize on new opportunities that begin to present themselves.
