PROJECT AND SITE DESCRIPTION | Located in Northern Los Angeles County this 1732 SF home sits on a 7,000 SF lot with a pool in the backyard. The home is just off of Seco Canyon Rd, a major artery, and is very close to Santa Clarita Park which has community recreational facilities.
STRATEGY | The owner of Santa Clarita was a highly motivated seller because he had recently moved to Arizona and desired a quick and easy sale. Offering to purchase all cash and close quickly was enough to entice the seller to accept our offer and open escrow. Following our physical investigation during escrow we were ale to get a significant price reduction due to the condition of the home. Although the size of the home was appropriate for the neighborhood, it was both run-down and out-dated, with a kitchen undersized for the home. Our strategy was to execute a cosmetic update, open the kitchen, and to convert a storage room to a 4th bedroom.
On commencement of work we found most of the systems to be in decent condition, requiring minimal repairs to the electrical, plumbing, and HVAC. The garage needed some additional structural support as the ceiling joists were undersized and needed to be replaced. To convert the large storage room to a bedroom we framed a door for privacy, added carpet, and installed an overhead light. Lastly we opened up the kitchen to integrate it into the living and dining areas, creating an open floor plan. Our turn around on this project, from purchasing the home to then re-listing it for sale, was very quick.
RESULTS | After just eleven days on the market the home was in escrow at a $344,000 which exceeded our pro forma of $330,000 . The project was completed in just 121 days beating the 180 we projected. The annualized return on equity was over 60%, contributed by both our shortened construction timeline and construction costs that came in 12% below budget.