1. Loan Purpose: Borrower and real estate investor sought a $345,000 2nd Trust Deed business purpose cash out loan on this non-owner-occupied, recently renovated and fully tenant occupied, detached duplex investment rental property in Duarte, Los Angeles County, CA. The city of Duarte is located 15 minutes east of Pasadena, CA. The funds from this loan will be placed into a funds control account to build two (2) ADU’s on the subject, converting property into a 4 unit detached quadraplex rental.
Exit strategy: DSCR refinance loan. The 1st mortgage is current with a principal balance of $834,000, a fixed interest rate of 5.75%, maturing October, 2054, and a P&I payment of $6,426/mo. The first lender impounds taxes and insurance.
2. Property Description: The subject offers two existing SFR’s and will be adding two ADUs. The two existing SFRs were completely renovated. Once the project is complete the subject will be in overall newer condition and of new construction, converting property into a quadraplex, all single story with 4 detached rental units. The property offers 2 detached garages and 4 driveway parking spaces. Once complete the total gross living area will be 3,791 SF on a 14,649 SF lot. Unit # 1 total 6 Rooms; 3 Bed/ 2.5 BA with 1,524 SF. Unit # 2 total 4 Rooms; 1 Bed/ 1 BA with 639 SF. Unit # 3 total 5 Rooms; 2 Bed/2 Ba with 814 SF. Unit # 4 total 5 Rooms; 2 Bed/; 2 Ba with 814 SF. Two existing units earn $8,000 monthly rental income. Two ADUs will increase rental income by an additional $7,500 when complete. Property is surrounded by similar SFRs, multifamily properties, large shopping plazas, restaurants, schools, parks, the Irwindale Speedway, Los Angeles Arboretum and Botanical Garden. Property near Pasadena and Monrovia in Los Angeles County. The subject property is well located near the 210 and 605 FWYs in Los Angeles, CA.
What We Like:
- Good condition suburban rental property in desirable neighborhood of Los Angeles County
- 12.50% Investor Yield
- 52.49% Net CLTV with $300K Funds Control
- Independent Feasibility Report confirmed After Completion Value
- 6 months Prepaid Interest
- 6 months Guaranteed Interest
- Exit Plan to Pay off Loan: DSCR Refinance
- $1,021,000 Protective Investor Equity
$345,000 2nd TD @ 12.50%, NOO, SFR, ADU, 53.59% CLTV, 18 mo., $34,500 Min., Fallbrook, CA
