VERY VICTORIAN
It needs a lot of love but has a lot of potential!
1441 CARROLL AVE LOS ANGELES CA 90026 4/4 4071 SQ FT. $1,295,000
Taking on a historic property is a bigger deal than you'd expect. BELIEVE ME. It has higher highs and lower lows. The highest high would be an amazing mind-blowing transformation that is SPECIAL and IMPORTANT. Special homes rent for higher than generic homes. In a coveted neighborhood such as Angelino Heights, with a unique historic history, these apartments have high potential for being outstanding and having a very good CASH FLOW. If you put in a stylish and period appropriate restoration that is inclusive of local HPOZ regulations and city planning's historic office's involvement, you will also rent this out for much higher than regular apartments. This is a special property. This is an important property. This property, outside of the work it needs, is a pretty good deal at 1.295M considering it's size and location.
I am assuming, based on my visit to the property, that a one bedroom apartment here, AFTER a restoration, would rent at at least $2750/mo. You could even possibly rent it out in the $3k/mo range based on it's uniqueness, location, size and the fact it has a garage. BUT let's stay conservative at $2750. These apartments are huge at over 1000sq ft each with garages and meandering decks. They have HIGH HIGH ceilings, big bathrooms, beautiful windows, unique details, original wood floors, windows and moldings. They have BONES. GOOD ONES. They have STORY. They need LOVE. They need a deep pocketed big hearted new owner. I would volunteer but I can't afford it. I have the heart, the know how and the will, but I don't have the $850k. BUT if you do.... keep reading.
If you run numbers at 1.3M$ purchase price, $500k in restoration (yes I said that) and $2750/mo in rent at 25% down, you are looking at about $3800/mo cash flow. (if you can get 3k/mo you would be closer to 4800/mo) It's roughly an 8.5% cap rate but only a 5% cash on cash return. It's a good investment that is cash heavy due to it's condition. BUT IF you apply for the Mills Act, which is a program that can reduce your annual city tax by about 60% if you are restoring or have spent considerable money on a qualified historic home, then you could increase the cash flow by about $800-1000/mo... and that brings your cash flow up to roughly 4600-5600/mo POSSIBLY. But you have to apply, it's expensive and it takes the better part of a year. You have to be selected and they have to think your house is worthy. I think they might with this one.
This house has quite a story, having been the first Jewish Hospital in Los Angeles which essentially led to the beginnings of Cedars Sinai. It is also on famed Carroll Ave in Angelino Heights, which is the street with the most Victorians. The history is rich so there is a chance this would be a highly prized addition to the Mills Act Homes. This is an investment for someone looking for a project rich in history, someone looking to get lost in the process and in the end have a cash flowing gem on their hands.
This is a home on the Historic Register. You will need both HPOZ approvals and I am assuming city planning (historic office) approval in order to do restorations and make changes since this is a registered historic property. This you would have to check on. The process for these approvals is LONG but doable. You need to be organized, have done proper research and be able to present yourself well. You need persistence and confidence. If you have good intentions, and I only think you should ever do a project like this IF YOU DO, you will enter into an enthusiastic restoration with the intention of doing just that... RESTORING. Not remodeling. Not updating. RESTORING.
I will warn you that you will need to adhere to doing what is appropriate for the period, and anything less won't receive approval. If you haven't presented the proper restoration plan with proper materials, thorough research and LOTS OF PATIENCE, you will not get through it. However I think the city might might welcome a restoration. This house needs it, it's not in original condition throughout, it needs someone who cares to do the right thing. The insides here have a lot of original detail intact, but there are several unfortunate "updates". There are 80's kitchens with laminate countertops, vintage hex LINOLEUM, I spied a vinyl window in there. However I did spy a few gems lying around and the agent said it could be negotiated in the sale to include some of these antiques with the sale. This stove steals my heart. Wow.
What does an authentic kitchen restoration look like? It's knowing that you need to use real wood cabinets, countertops that would have been used then (like wood butcher block or soapstone), ceramic tile on the walls, wood floors, or possibly an appropriate tile. You wouldn't use Granite Countertops, you wouldn't use Laminate floors, you wouldn't use vinyl windows. You won't choose mosaic glass tiles. You basically can't buy anything design related from a store like Home Depot. It must all be thoughtful. If you approach the city with a heart full of good intentions and respect for this history and historic design, I think you can find your way through.
Let me warn you of the costs involved. I would blanket a restoration for 4 units in the $300,000 range and then add in the worst case scenarios including a brand new foundation (it currently is original brick and is a little roly-poly) and a new roof and I'd throw in new sewer laterals to the street for fun, because BELIEVE ME, it probably needs them. AND you are in the $500k range. Can you do it for less. Sure. Maybe. I would say 500k so you don't drop dead later when it rolls up that high.
Please don't think you can go in and paint and refinish the floors. It needs more. It will need a lot more than what you can see. This isn't a project for beginners. This is a project for LOVERS.
If you are interested in buying or selling a historic home in Angelino Heights or other historic neighborhoods in Los Angeles, and want a qualified caring agent to get you through the process who knows what it takes to take on a historic fixer, you are in the right place.
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