Los Angeles' Mt. Washington: A House Flippers Paradise
Tracy King Realty
Houses, Land Management, House Rentals
The Northeast Los Angeles community of Mt. Washington is one of LA’s hottest real estate markets. Homes for sale in Mt. Washington have become a hot commodity not only for homebuyers but also for home flippers yearning to make large profits off of the sheer number of very old homes in the region. Mt. Washington is, after all, one of the oldest neighborhoods in Los Angeles with many homes there built as early as the early 1920’s.
House flippers enter the market by paying cash for a “run-down” home and then spend the next several months doing quick and hardy renovations to significantly increase the value of the home. Before 12 months pass they resale the home for a price at least 10% higher than the original purchase price. House flippers in up-and-coming neighborhoods like Mount Washington often make an even larger profit. Mt. Washington real estate agents who make the sale also share in the large profits.
For example, last year in Mt. Washington a mid-century ranch style house was on the market for $590,000. House flippers purchased the home and performed essential updates while also adding a bedroom. Months later the same mid-century was on the market for $990,000, which is a 67% increase in price.
Back in January, the popular real estate site, Redfin, predicted Mt. Washington as the most desirable neighborhood of 2016. It is no coincidence that its next-door neighbors, Eagle Rock and Highland Park, won the same title the previous two years. Northeast Los Angeles is gaining momentum in both housing prices and desirability from eager buyers. In 2015, house flippers in Mt. Washington had an average gain of $312,000 per project. When Redfin made their prediction in January, the median price of a home as $699,000. Just as they predicted, the median price in February shot up 19.2% to $790,000. The trend has continued and Mt. Washington sellers are getting at least 6.5% above their asking price. Their homes are sitting on the market for an average of 13 days only. What makes Mt. Washington such a high in-demand neighborhood?
Mt. Washington has always had a special reputation. In the early 1920’s it was considered to be an escape from city life and many of the homes were built to resemble small, rustic cabins. The landscape is rich with large, old trees that provide serene shade, a variety of fun hiking paths, breathtaking views of Downtown LA and the lush canyon and private windy roads. Mt. Washington Elementary School is critically acclaimed for their high quality education. The homes found in Mt. Washington match the charming, unique atmosphere. Many homes have walls of glass, high vaulted ceilings, large stone fireplaces, chic wraparound decks for 360-degree views and spacious rooms to savor the views. Despite the rural feel, Mt. Washington is just around the corner from Downtown Los Angeles and has its own Metro Gold Line station to ease public transportation.
For all of these reasons and more, Mt. Washington continues to be a paradise for both house flippers and its happy residents.
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