Value-Add Real Estate Investing: 2932 Farmdale Ave

In today’s uncertain economy, investors are searching for stable, controllable, and high-upside assets. Real estate flips, when executed strategically, can generate short-term profits while laying the foundation for long-term wealth-building.

Enter 2932 Farmdale Ave, a value-add opportunity in one of Los Angeles’s fastest-appreciating neighborhoods. With strong comps, a prime Mid-City location, and a clear renovation strategy, this property offers serious ROI potential.

📊 Investment Snapshot

• Address: 2932 Farmdale Ave, Los Angeles, CA

• Property: 3 Bed / 2 Bath, 1,955 SF on a 5,851 SF lot

• Purchase Price: $899,303 ($460/SF)

• Renovation Budget: $234,600 (@ $120/SF)

• Closing & Holding Costs: $26,979

• Carrying Costs (6 months): $33,000

• Loan Interest (8% APR): $28,000

• Total Investment: ~$1,221,882

• Contingency: +10% for delays or unexpected costs

📈 Profit Potential

Mid-City comps show post-renovation values of $750–$1,000 per square foot. Target resale range: $1.5M–$1.65M.

• At $725 PPSF: ~$125K profit (10% ROI, 20.9% IRR)

• At $775 PPSF: ~$217K profit (17.7% ROI, 35.5% IRR)

• At $800 PPSF: ~$264K profit (21.6% ROI, 42.7% IRR)

• At $825 PPSF: ~$309K profit (25.3% ROI, 49.3% IRR)

Breakeven PPSF: ~$670
Target Exit PPSF: ~$825

📉 Timeline

• Month 0: Acquisition

• Months 1–4: Renovation (full systems upgrade likely, 1930s construction)

• Month 5: Listing and marketing

• Month 6: Sale and profit realization

🏛️ Investment Rating: A-

• Location: Excellent (West Adams/Mid-City, near Culver City)

• Profitability: Strong (up to 25% ROI in 6 months)

• Risk: Moderate (older property, full upgrades expected)

• Market: Positive (limited supply, strong buyer demand)

📌 Exit Strategy

• Primary: Fix & Flip (recommended 6-month hold)

• Alternative: Hold as a rental (est. $5K–$6K/month, 5–6% cap rate, ADU potential)

🔧 Final Thoughts

With comps supporting a $1.6M+ resale, strong buyer demand, and a projected 40%+ IRR, 2932 Farmdale Ave stands out as a top-tier LA flip candidate.

For investors ready to act, this property demonstrates the wealth-building power of value-add real estate investing in Los Angeles.