General Contractor and real estate investor sought a $175,000 second trust deed business-purpose cash-out loan secured by a non-owner-occupied, single-family rental property in Duarte, Los Angeles County, CA—just 15 minutes east of Pasadena. Loan proceeds will be placed in a funds control account to finance the construction of a 1,000 SF Accessory Dwelling Unit (ADU) on the property. This General Contractor successful with previous Mortgage Vintage loans.
Property Overview
The existing 1,029 SF single-story ranch-style home features 3 bedrooms, 1 bathroom, and 6 total rooms, fully occupied by a tenant generating $4,000/month in rental income. The planned 1,000 SF ADU will add 3 bedrooms, 2 bathrooms, and 7 total rooms with projected $3,500/moth in rental income on a 9,969 SF lot.
Location Highlights
Situated near Pasadena, Monrovia, and major freeways (210 & 605), the property is surrounded by single-family homes, multifamily properties, shopping centers, restaurants, schools, parks, and entertainment venues like Irwindale Speedway and the Los Angeles Arboretum.
Valuation & Feasibility
- After Completion Appraised Value (ARV): $1,200,000
- Independent Construction Feasibility Report: Confirms sufficient budget to achieve ARV
- Protective Investor Equity: $615,345
Key Investment Highlights
✅ Strong suburban rental property in a Los Angeles County neighborhood
✅ Attractive 13.00% investor yield and Borrower has $200K liquidity in bank
✅ Conservative 48.72% Net CLTV with $150K funds control
✅ Independent feasibility report confirms $1.2M post-construction valuation
✅ 6 months guaranteed interest and 6 Months Prepaid Interest
✅ Defined exit strategy via refinance loan
$175,000 2nd TD @ 12.50%, NOO, SFR, ADU, 64.97% CLTV, 18 mo., $43,750,000 Min., Duarte, CA
