A quick renovation update on a 6-unit property we sold last year in Mid Los Angeles. We delivered the property to the Buyer with 4 of 6 units vacant units. Generally speaking there are pros and cons to purchasing a rent-controlled property with vacancy such as this. On the positive side, it allows a Purchaser to begin renovating the units immediately upon closing escrow to achieve at or above market rents without having to deal with existing tenants. On the negative side, deals with vacancy are generally tougher to finance and many times they are priced with the juice already squeezed out of the deal.
That said the buyer of this property did a fantastic job with their renovations. They laid down new flooring, installed new European style cabinets with Caesarstone countertops, modern tile backsplashes and stainless steel appliances – most of the attributes that today’s renter pool looks for in a unit.
They are beginning the lease up process asking just under $3,000/month for each of the 4 two-bedroom units – which is top of the market rent for the area. Upon fully leasing the units, their plan is to refinance their current bridge loan which they used to acquire the property with permanent debt. All in all this was a solid execution. See before and after photos below: