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7940 Fareholm Drive Los Angeles, CA 90046

3 Beds 2 Baths 1,311 sqft Built 1953

$1,500,000

List Price

$5,240

$5K - $5.5K

Rent Est.

PROPERTY INFO

December 12, 2020 RECENTLY ADDED
FACTS
  • Single Family
  • Built In 1953
  • Price/Sqft : $1,144.16
  • 3 Days on Market
  • MLS # : 20669792
  • Updated Date : 12/11/2020 at 18:13
CONSTRUCTION
  • Beds : 3
  • Floor Size : 1,311 sqft
  • Baths : 2 full
Listing Agent

Sotheby's International Realty

Listing Agent's Description

Corner lot featuring a modern mid-century residence w/ unobstructed views of Downtown LA (DTLA). Centrally located with easy access to dining & entertainment. Walking distance to the Sunset Strip just off of Hollywood Blvd & Laurel Canyon. Home features 2 bedrooms + den that has been converted into a bedroom. Spectacular views from all main rooms including the primary bedroom with jetted tub in main bathroom. French doors lead to balcony & decks, great in-door/out-door flow. This is a great income producing property and/or fixer upper. There is also a separate entrance to the 2nd bedroom on the lower level and could be perfect for someone looking to rent out a bedroom/bath. Great opportunity!

SEE MORE

MARKET HIGHLIGHTS

  • 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)
  • 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]

PRICE & RENT TRENDS

Neighborhood: Mount Olympus

ZipNIR Market*CityMarket2010Year20002019200k300k400k500k600k700k800k900k1000k1100k1200k1300kPrice in $199k1395k

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

Neighborhood: Mount Olympus

ZipNIR Market*CityMarket2010Year2000 Q42019 Q2200025003000350040004500500055006000Rent in $17846144

* 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
Gardner Street Elementary School Primary Regular 452 18 7
Gardner Street Elementary School Middle Regular 452 18 7
Fairfax Senior High School High Regular 2,101 83 6

Gardner Street Elementary School

  • Education Level: Primary
  • # of students: 452
  • # of teachers: 18
7
GreatSchools Rating

Gardner Street Elementary School

  • Education Level: Middle
  • # of students: 452
  • # of teachers: 18
7
GreatSchools Rating

Fairfax Senior High School

  • Education Level: High
  • # of students: 2,101
  • # of teachers: 83
6
GreatSchools Rating
 

$1,350,000$1,650,000$1,500,000

PURCHASE PRICE

$4,716$5,764$5,240

RENT

DOWN PAYMENT
FINANCING

FINANCIALS

PROJECTED BASIC MONTHLY INCOME STATEMENT

INCOME Rent $5,240
EXPENSES Loan Payment -$5,534
Property Tax -$1,511
Property Insurance -$59
Property Management Fees -$257
CASH FLOW
-$2,120

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.

$1,500,000

PROJECTED PRICE

$5,240

PROJECTED RENT

0.35%

PROJECTED RENT / PRICE RATIO

ASSUMPTIONS

Expense Inflation 2.50%
Rental Growth Year (1-5) 4.56%
Appreciation Year (1-5) 8.6%
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$1.0M$2.0M$3.0M$4.0M$5.0M

PROJECTED ANNUAL CASH FLOW

11530-$30k-$20k-$10k$0.0$10k$20k

PROJECTED PROPERTY VALUE

30 YEAR PROJECTION

  • Appreciation
  • Principal
  • Loan Balance
11530$0.0$1.0M$2.0M$3.0M$4.0M$5.0M

TOTAL CASH OUT OF POCKET

TOTAL OUT OFPOCKET$403,250

INVESTMENT

$403,250

Down Payment
$375,000
Rehab Estimate
$5,750
Closing Costs
$22,500

LOAN DETAILS

25%

DOWN PAYMENT

HOMEUNION RECOMMENDS:

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

$5,534

MONTHLY LOAN PAYMENT

30 yr
Term
4.25%
Interest
25.00%
Down Payment
Term 30 Years
Interest 4.25%
Down Payment $375,000
Loan Amount $1,125,000
See What Happens When You Reinvest Cash Flow

0.33

YEARS SAVED

$1,258

INTEREST SAVED

CASH FLOW REINVESTMENT

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

  • $5,240

    LIST RENT
  • $4

    LIST RENT PER SQFT
  • $4,108

    COMP ESTIMATED VALUE
  • $3.13

    COMP AVG. RENT PER SQFT
Comps Range
$3,900
1$3,9002$4,2003$4,4004$5,240
$5,240
RENT COMPS ANALYSIS
  • 7940 Fareholm Drive Los Angeles, CA 4
    • 3 beds 2 baths ∙ 1,311 Sqft ∙ Built 1953 3 beds 2 baths ∙ 1,311 Sqft ∙ Built 1953
    property image
    • Rent
    • Rent Per SQFT
    •  
    • $5,240
    • $4.00
    •  
  • 2531 Thames Street Los Angeles, CA 1
    • 3 beds 2 baths ∙ 1,304 Sqft ∙ Built 1960 3 beds 2 baths ∙ 1,304 Sqft ∙ Built 1960
    property image
    LEASED 06/08/20
    • Rent
    • Rent Per SQFT
    •  
    • $3,900
    • $2.99
    •  
  • 1745 Camino Palmero Street West Hollywood, CA 2
    • 3 beds 2 baths ∙ 1,475 Sqft ∙ Built 1973 3 beds 2 baths ∙ 1,475 Sqft ∙ Built 1973
    property image
    LEASED 12/03/20
    • Rent
    • Rent Per SQFT
    •  
    • $4,200
    • $2.85
    •  
  • 2335 Stanley Hills Drive Los Angeles, CA 3
    • 3 beds 2 baths ∙ 1,236 Sqft ∙ Built 1966 3 beds 2 baths ∙ 1,236 Sqft ∙ Built 1966
    property image
    LEASED 06/08/20
    • Rent
    • Rent Per SQFT
    •  
    • $4,400
    • $3.56
    •  
PROPERTY LISTING DETAILS
Dean Mandile
Sotheby's International Realty
Darryl John Willis
1.866.250.5610
HomeUnion.com
Lic. BRE# 01526904
California Regional Multiple Listing Service ( CRMLS)
MLS #: 20669792
Last Updated: 12/11/2020
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