1. Loan Purpose: Successful Mortgage Vintage borrowers and successful real estate investors sought a business purpose 2nd TD cash-out on this Duplex rental investment property in Los Angeles, CA. 100% of the funds from our loan proceeds will be put into Funds Control to reconfigure the existing Duplex and add 2 new fully permitted ADU units in the back of this subject property. Exit strategy from our loan is a conventional refinance once construction is complete. The first TD has a principal balance of $735k with a 8.125% rate.
2. Property Description: The subject property is a traditional style Duplex in a suburban neighborhood surrounded by like properties many of which have been fully renovated. The subject property when completed will consist of two ADUs and will total 4,400 SF of rentable living space. The subject property will be divided into 4 rental units, sitting on a 6,797 SF lot. The existing duplex will be converted from two 1BR/1BA units (598 Sq Ft each) to two 2BR/2BA units (1,000 Sq Ft each). Market rent for each existing unit is estimated to be $3,750. The new two additional ADUs once completed will each consist of 5 total rooms with 2 BR/3BA = 1,200 Sq Ft each. Market rent for each unit is estimated to be $4,750. Total Rent for the 4 units is estimated to be $17,000/mo. The subject property is very well located just East of Marina Del Rey, Play Del Rey and the Los Angeles Airport. The subject property is located near many schools, shopping, and restaurants; just West of the 405 FWY
What We Like:
- Well located Duplex; once complete 4 rentable units
- 12.50% annualized return
- 62.22% CLTV 34.55% Net CLTV
- 100% funds in Funds Control ($700k)
- 6 months Guaranteed Interest
- 3 Months Prepaid Interest
- 759 and 704 FICOs
- Potential Gross Rental Income of $17,000/mo.
$758,000 2nd TD @ 12.50%, NOO, Duplex – 4plex, 62.22% CLTV, $37,900 Min., Los Angeles, CA
