Recently Funded Fix And Flip Loan In North Hollywood, CA

Loan Scenario:

This fix-and-flip project centers on a single-family detached property located in North Hollywood, California, featuring the addition of two new dwelling units. The property was purchased for $715,000 with a comprehensive rehab budget of $302,500, focused on the construction of (1) 1,000 Sq. Ft. 3 Bed, 2 Bath ADU and (1) 1,000 Sq. Ft. 3 Bed, 2 Bath Additional Dwelling Unit. The total loan amount secured for this project is $874,500, yielding an impressive Loan-to-Cost (LTC) ratio of 86% and a Loan-to-After Repair Value (LTARV) of 68%.

The after-repair value (ARV) of the property is projected at $1,300,000, reflecting the significant enhancements planned. The scope of work includes extensive renovations designed to elevate the property’s functionality and marketability. In addition to the new construction of the ADUs, the project involves updating the main house, including the installation of new exterior and interior doors, windows, and siding, which will enhance the property’s curb appeal.

The renovations will also encompass vital upgrades to electrical and plumbing systems, roof repairs, and the installation of modern HVAC systems to ensure energy efficiency and comfort in all units. Interior improvements will include drywall installation, painting, and kitchen and bathroom renovations, creating contemporary living spaces that cater to current market demands.

The experienced investor, familiar with the fix-and-flip process, will leverage the financing to cover all hard costs associated with these enhancements, ensuring a thorough transformation of the property. By executing these strategic renovations and additions, the project aims to maximize returns while significantly enhancing the overall value and appeal of the property in the competitive North Hollywood real estate market.