Los Angeles - King of the Duplex ??

This property at 2953 S Bronson was immediately appealed. This area is experiencing fantastic change that has elevated the entire Crenshaw Corridor.

Completely renovated duplex, sold for 9% under asking. If you break down the #, living in one unit and renting the other, the carrying cost is close to the rental amount for the area, with the additional rental income and, ideally, the appreciation that Los Angeles continues to accrue. If the 2028 Olympics does anything, it will amplify this city's improvement and help keep us at the top of our minds as an international city to visit and move to.

As an investor, I have to consider properties' long-term value. Although I prefer value-add, this is a great home to get into the marketing offset carrying cost and see greater accumulated appreciation.

Text (323) 719-8585 or [email protected]?to help find a great home or multifamily in Los Angeles.

Is 2953 S Bronson Ave - A 10-Year Analysis

When considering a property like 2953 S Bronson Ave in Los Angeles, it's crucial to understand the costs of getting started and the potential long-term financial benefits. This analysis highlights the initial investment required, how rental income can significantly reduce your carrying costs, and your total return if you sell the property after 10 years.

What It Takes to Get the Place:

• Initial Purchase Price: The property is listed at $1,550,000, meaning you'll need a 20% down payment—$310,000—to secure it.
• Monthly Mortgage Payments: With a 30-year fixed loan at a 6.5% interest rate, your monthly mortgage payment would be $7,832.68. Over the first decade, mortgage payments add up to $939,921.60.
• Additional Costs: Property taxes and insurance are estimated at $1,937.50 per month combined, which is typical for a property of this value in Los Angeles.

How the Rental Unit Reduces Your Carrying Cost:

One of the most compelling aspects of this property is its rental potential. An initial monthly rent of $4,000 can significantly impact your monthly budget.

• Significant Offset: With $4,000 in rental income each month, your effective monthly payment drops from $7,832.68 to $3,832.68 right from the start.
• Long-Term Benefits: Over 10 years, rental income totals approximately $563,338.68. As rent increases by 3% annually, your tenants will help pay down a significant portion of your mortgage, reducing the net cost of ownership to $376,582.92 over the decade.
• Lower Effective Monthly Payment: Factoring in rental income, your effective monthly payment is just $3,138.19—much lower than the original mortgage payment, making this property more affordable in the long run.

Total Return After Selling in 10 Years:

If you decide to sell the property after 10 years, here's what your financial return could look like:

• Future Property Value: With an annual appreciation rate of 7%, the property's value is projected to grow to approximately $3,049,084 after 10 years.
• Total Rental Income: Over 10 years, you would have collected around $563,338.68 in rental income.
• Selling Costs: If you sell the property, you’ll typically pay about 5% of the sale price in realtor commissions. A property valued at $3,049,084 would amount to approximately $152,454.
• Net Proceeds from Sale:
• Total Return: After selling the property, your total return would include the net proceeds from the sale plus the rental income collected over 10 years.
• Initial Investment: Subtracting the initial down payment and net cost after rent ($310,000 down payment + $376,582.92 net cost) gives you the total profit.

Conclusion:

Investing in 2953 S Bronson Ave positions you for significant property appreciation and leverages rental income to reduce your carrying costs. If you hold the property for 10 years and sell it, your total return could reach approximately $3,459,968.68, resulting in a substantial profit of around $2,773,385.76 after accounting for your initial investment and selling costs. This makes the property a potentially lucrative addition to your real estate portfolio.

Let's Chat Real Estate ???

Feel free to reach out if you're interested in buying, selling, or just chatting about real estate in Los Angeles! Whether you're looking for the perfect beachfront property or exploring more budget-friendly options, I'm here to help. Let's find the perfect place for you! Please feel free to contact me here. ???

Agent | DRE# 02242095. | [email protected] | (323) 719-8585