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2842 May Avenue Redondo Beach, CA 90278

3 Beds 1 Baths 1,091 sqft Built 1943

$949,000

List Price

$3,320

$3.1K - $3.6K

Rent Est.

PROPERTY INFO

FACTS
  • Built In 1943
  • Price/Sqft : $869.84
  • 19 Days on Market
  • MLS # : SB20222838
  • Updated Date : 11/06/2020 at 06:12
CONSTRUCTION
  • Beds : 3
  • Floor Size : 1,091 sqft
  • Baths : 1 full
Listing Agent

Win Real Estate Services, Inc.

Listing Agent's Description

Located near the Southwest corner of the highly sought after TRW Tract in Redondo Beach sits the little yellow cottage. Nicely oriented on an oversized corner lot with front, side and rear yards, the interior of the home is centered on the living room with bedrooms to either side and the dining room and a pass through kitchen set to the back of the home with easy access to the rear yard and garage beyond. All just a few minutes from the sands of Manhattan Beach, parks, schools, shopping and the 405. Limitless options for the first time buyer, owner builder or even an investor. Truly a Dimond in the rough - Needs work.

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MARKET HIGHLIGHTS

  • Southern California produces more technology PhDs per year than any other region in the country and many of the higher educated students stay within Souther California contributing to readily available workforce skills making the area more attractive than Silicon Valley (BCG, 2018)
  • Southern California has 58.7% labor force participation rate; within this area, Los Angeles metro has 62.3% labor force participation rate (USMayors.org, 2018)
  • Headquarters to several Fortune 500 companies: Amgen, Farmers Insurance, Walt Disney, Avery Dennison, Activision Blizzard, CBRE Group, Edison International, Molina Healthcare, First American Financial, Pacific Life, Qualcomm and Sempra Energy (Fortune, 2018)
  • Southern California area contributes to 55.3% of California state economy i.e. Gross State Product (USMayors.org, 2018)
  • The area has major technology nodes of excellence: Los Angeles (Media and entertainment); Pasadena (High-tech engineering, data analytics); Riverside (Agtech, transportation/ distribution); San Diego (Healthcare, biotech, wireless communications); Irvine (Medtech, cyber security); El Segundo (Aerospace and defense IT, space transport) [BCG, 2018]
  • As part of Southern California area, Los Angeles market inherits all the benefits from the area.
  • Los Angeles has been awarded the 2028 Olympics under a funding commitment of $88 billion to upgrade the transportation infrastructure connecting disparate pockets of the metro area. This is expected to produce additional employment in the coming years. (BCG, 2018)
  • Southern California's economy is worth $1.58 trillion in Gross Metro Product and projected to grow to $1.67 trillion (USMayors.org, 2018)

PRICE & RENT TRENDS

Neighborhood: North Redondo Beach

NeighborhoodNIR Market*CityMarket2010Year20002019200k300k400k500k600k700k800k900k1000k1100kPrice in $199k1143k

* NIR Market: Aggregated price or rent trend of all neighborhoods with same NIR

Neighborhood: North Redondo Beach

NeighborhoodNIR Market*CityMarket2010Year2000 Q42019 Q218002000220024002600280030003200340036003800400042004400Rent in $17844464

* NIR Market: Aggregated price or rent trend of all neighborhoods with same NIR

SCHOOLS

NAME EDUCATIONAL LEVEL SCHOOL TYPE # OF STUDENTS # OF TEACHERS GREATSCHOOLS RATING
Lincoln Elementary School Primary Regular 579 25 9
Lincoln Elementary School Middle Regular 579 25 9
Redondo Union High School High Regular 2,658 102 9

Lincoln Elementary School

  • Education Level: Primary
  • # of students: 579
  • # of teachers: 25
9
GreatSchools Rating

Lincoln Elementary School

  • Education Level: Middle
  • # of students: 579
  • # of teachers: 25
9
GreatSchools Rating

Redondo Union High School

  • Education Level: High
  • # of students: 2,658
  • # of teachers: 102
9
GreatSchools Rating
 

$854,100$1,043,900$949,000

PURCHASE PRICE

$2,988$3,652$3,320

RENT

DOWN PAYMENT
FINANCING

FINANCIALS

PROJECTED BASIC MONTHLY INCOME STATEMENT

INCOME Rent $3,320
EXPENSES Loan Payment -$3,501
Property Tax -$942
Property Insurance -$54
Property Management Fees -$163
CASH FLOW
-$1,339

This is the estimated cash flow generated during a typical maintenance-free month. It is recommended that investors set aside 13% of earned rent to cover both maintenance and periods of vacancy.

$949,000

PROJECTED PRICE

$3,320

PROJECTED RENT

0.35%

PROJECTED RENT / PRICE RATIO

ASSUMPTIONS

Expense Inflation 2.50%
Rental Growth Year (1-5) 4.56%
Appreciation Year (1-5) 7.7%
Maintenance Year (1-5) 8.00%
Vacancy 5.05%
Length of Stay Years 2

PROJECTED ACCUMULATED WEALTH

30 YEAR PROJECTION

  • Cash Flow
  • Appreciation
  • Principal
11530$0.0$500k$1.0M$1.5M$2.0M$2.5M$3.0M

PROJECTED ANNUAL CASH FLOW

11530-$25k-$20k-$15k-$10k-$5.0k$0.0$5.0k$10k$15k

PROJECTED PROPERTY VALUE

30 YEAR PROJECTION

  • Appreciation
  • Principal
  • Loan Balance
11530$0.0$500k$1.0M$1.5M$2.0M$2.5M$3.0M

TOTAL CASH OUT OF POCKET

TOTAL OUT OFPOCKET$257,235

INVESTMENT

$257,235

Down Payment
$237,250
Rehab Estimate
$5,750
Closing Costs
$14,235

LOAN DETAILS

25%

DOWN PAYMENT

HOMEUNION RECOMMENDS:

A 70% down payment or higher enables the proceeds from the asset to cover all costs.

$3,501

MONTHLY LOAN PAYMENT

30 yr
Term
4.25%
Interest
25.00%
Down Payment
Term 30 Years
Interest 4.25%
Down Payment $237,250
Loan Amount $711,750
See What Happens When You Reinvest Cash Flow

0.33

YEARS SAVED

$774

INTEREST SAVED

CASH FLOW REINVESTMENT

The time & interest saved by applying each month's positive cash flow towards loan principal pay down.

  • $3,320

    LIST RENT
  • $3.04

    LIST RENT PER SQFT
  • $3,325

    COMP ESTIMATED VALUE
  • $3.05

    COMP AVG. RENT PER SQFT
Comps Range
$2,950
1$2,9502$3,3203$3,4004$3,5005$3,900
$3,900
RENT COMPS ANALYSIS
  • 2842 May Avenue Redondo Beach, CA 2
    • 3 beds 1 baths ∙ 1,091 Sqft ∙ Built 1943 3 beds 1 baths ∙ 1,091 Sqft ∙ Built 1943
    • Rent
    • Rent Per SQFT
    •  
    • $3,320
    • $3.04
    •  
  • 2411 Curtis Avenue Redondo Beach, CA 1
    • 3 beds 2 baths ∙ 1,050 Sqft ∙ Built 1961 3 beds 2 baths ∙ 1,050 Sqft ∙ Built 1961
    LEASED 10/27/20
    • Rent
    • Rent Per SQFT
    •  
    • $2,950
    • $2.81
    •  
  • 2923 Perkins Lane Redondo Beach, CA 3
    • 3 beds 1 baths ∙ 1,057 Sqft ∙ Built 1947 3 beds 1 baths ∙ 1,057 Sqft ∙ Built 1947
    LEASED 11/17/19
    • Rent
    • Rent Per SQFT
    •  
    • $3,400
    • $3.22
    •  
  • 2004 Graham Avenue Redondo Beach, CA 4
    • 3 beds 2 baths ∙ 1,174 Sqft ∙ Built 1950 3 beds 2 baths ∙ 1,174 Sqft ∙ Built 1950
    LEASED 09/11/20
    • Rent
    • Rent Per SQFT
    •  
    • $3,500
    • $2.98
    •  
  • 3300 Mcbain Avenue Redondo Beach, CA 5
    • 3 beds 2 baths ∙ 1,227 Sqft ∙ Built 1950 3 beds 2 baths ∙ 1,227 Sqft ∙ Built 1950
    LEASED 11/02/20
    • Rent
    • Rent Per SQFT
    •  
    • $3,900
    • $3.18
    •  
PROPERTY LISTING DETAILS
Mathew Moore
Win Real Estate Services, Inc.
Darryl John Willis
1.866.250.5610
HomeUnion.com
Lic. BRE# 01526904
California Regional Multiple Listing Service ( CRMLS)
MLS #: SB20222838
Last Updated: 11/06/2020
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