We’re excited to report that we’ve acquired a two-bedroom, one-bathroom home located near the Paramount Pictures headquarters in Los Angeles. This is our team’s first direct purchase of a single-family home, and marks the start of our new single family renovation strategy in major US cities nationwide.

The 697 square foot house was purchased for approximately $404,000. Renovations on the property are anticipated to cost roughly $142,000. After completion of the renovations, we believe we can sell the home for a profit of up to 22% (though as with any investment, no return of any kind is guaranteed).

Why we invested

  • Convenient access to LA: Freeways are the main arteries serving the community. The Metro Rail subway system links North Hollywood to downtown Los Angeles, providing residents a convenient commute to this major employment center.
  • Strong neighborhood growth: the investment is well-located in an improving central district with physical barriers to entry.
  • Attractive purchase price: the property was purchased at a price well below typical market sales for comparable homes in the immediate submarket.

Smart investing: (lack of) curb appeal

We have all heard the saying before: first impressions are everything, and the housing market is no different. A potential homebuyer’s first look at a property, which may only consist of a “drive-by”, can have a lasting impact on the value of the home. As such, the curb appeal of a home is essential in determining its price.

But bad curb appeal isn’t all bad; it creates an opportunity for investors to acquire an asset at a discount in exchange for the additional requirements to rehab the property. Though many prospective buyers might be dissuaded by the work required, with our extensive industry experience, we welcome the opportunity to turn this piece of property into a truly remarkable home. Though hidden below piles of trash as shown in the video, we are confident that there is the potential for a beautiful single family home in the centrally-located, walkable East Hollywood neighborhood.

Los Angeles continues to see a major shortage of reasonably-priced, new homes in desirable neighborhoods such as East Hollywood, particularly as demand from millennials grows. We believe our intended renovations in addition to the major housing shortage in LA should support an increased home price upon sale of the newly-renovated home.

As we put on our hard hats and get started on the extensive trash removal and demolition, we look forward to updating you on the progress of the renovation and sharing the “after” photos!