Flipping in DTLA

I've been getting requests from investors about flipping in downtown. Flipping is not as common in condos. It's just such a hassle to buy a condo, get board approvals, deal with building restrictions, and, with the way prices have been (especially in DTLA), sell for a modest profit at best.

But it does happen, and sometimes, it can be very easy. The best type of condo is often one that has been banged up a bit due to years of tenants living there. Appliances are in bad shape, cabinetry needs updating, flooring needs an overhaul, etc.

Typically, a condo that's been overhauled can fetch about twice the amount of remodel money put into it. For instance, a condo with a market price of $800k with a remodel that cost $75k can end up being worth $950k to the public. Not a bad return on your money.

What are the typical remodels that generate the most ROI?

1. Kitchen (Appliances help, but more than that, modern cabinetry and ventilation.)

2. Bathroom (Just changing out the sink makes a huge difference. Then of course, tiles are a big deal right now, and you want to err on the light color side)

3. Flooring (Worn, stained, dated flooring needs to be replaced asap! It's the biggest turn off for buyers)

4. Storage (Add an extra closet, pantry space, etc. So many options these days. The biggest cheat is a floating wardrobe that is fixed to the wall.)

5. Lighting (Please add nice, modern lighting to dull, dark spaces. Even $2k worth of electrical work to add more ceiling lights will hugely add to value)

6. Paint (Please choose flat white for your walls if in doubt. Do not go crazy with colors unless you have a designer who can put the room "together" for you. I know wallpaper is hot right now but honestly, it has to be done right)

Just Leased - Douglas Lofts #4D at 740sf - Highest Leased Price for Floorplan

Douglas Loft #4D - 740sf + 1 parking

North facing unit with views of City Hall and mountains.

Listed at $2450/mo, which was already just above market rates for the building, this studio ended up getting $2550/mo, the highest price ever paid for a rental for a studio in the building. Rentals are slowing down in general due to an influx of new construction competition, but good units are still going strong.