acquisition  6/29/2012
disposition  11/27/2012
holding period 151

PROJECT AND SITE DESCRIPTION | Located in a highly desired area of Culver City, this 3 bedroom/ 3 bathroom distressed home was purchased though a short sale.  The interior of the home was riddled with holes in the drywall, broken windows, and rodent infestation along with other signs of severe neglect.

STRATEGY | Because the house had an outdated floor plan with a closed galley kitchen our strategy was to open up the living areas for contemporary use and update the interior and modernize the systems. In order to accomplish this we had to relocate a bathroom and remove a load-bearing wall which allowed the kitchen to be enlarged and open to the living areas.  Additionally we had to reroute an interior sub-panel, install a beam to carry second floor loads, and pour new footings.  The final house had three updated bathrooms, new copper plumbing, new electrical wiring, designer flooring, decorative interior doors and hardware, fresh interior and exterior paint, replaced irrigated landscaping and a new furnace.

RESULTS | At $799,000, the sales price was 10% greater than our projection and resulted in an annualized return on equity of over 45%.