The LAAA Team is proud to present 1206 N Edgemont St, a 4-unit multifamily building in East Hollywood being offered as an REO disposition by Roc360. The property is mid-renovation at the drywall stage, with all rough mechanical, electrical, and plumbing work substantially complete. The original renovation plan converts all four units from 1BR/1BA to open-concept 2BR/1BA layouts at approximately 1,052 SF each, with in-unit washer/dryer hookups, mini split HVAC, quartz kitchens, and modern finishes throughout.
A buyer acquires approximately $250,000 of completed construction value embedded in the purchase price, including approved electrical panels, roughed-in plumbing and HVAC, insulation, framing for new bedrooms, and drywall. The property is delivered 100% vacant with no tenant complications, in an Opportunity Zone with TOC Tier 3 density bonus potential, near the Vermont/Western Metro station.
At the recommended list price of $1,395,000, a buyer finishing the renovation at $250K-$400K achieves a stabilized exit value of approximately $2.0M ($509K/unit) based on projected rents of $3,100/month per unit and a 5.00% cap rate. The 4-unit residential format qualifies for conventional financing upon stabilization, and the Opportunity Zone designation provides additional tax benefits for qualifying investors.
| Property Overview | |
|---|---|
| Address | 1206 N Edgemont St, Los Angeles, CA 90029 |
| APN | 5540-012-007 |
| Units | 4 (converting to 2BR/1BA each) |
| Building SF | 4,208 SF (~1,052 SF/unit) |
| Lot Size | 6,250 SF (0.14 acres) |
| Year Built | 1922 |
| Parking | 4 garage spaces (1:1 ratio) |
| Occupancy | 100% Vacant |
| Condition | Mid-renovation (drywall stage) |
| Zoning & Incentives | |
|---|---|
| Zoning | R3-1XL |
| TOC Tier | Tier 3 (up to 70% density bonus) |
| Opportunity Zone | Yes |
| Promise Zone | Yes (Los Angeles) |
| State Enterprise Zone | Yes |
| RSO | Yes (vacant units set to market) |
| AB 2334 | Very Low Vehicle Travel Area |
| AB 2097 | Near Major Transit Stop |
| Specific Plan | Vermont/Western Station NAP |
| Trade | Status | Detail |
|---|---|---|
| Demolition | Complete | Walls removed for open floor plans |
| Framing | Complete | New bedroom walls, kitchen relocation framing approved 8/16/2024 |
| Electrical — Panels | Approved | 4 new panels + branch circuits approved 7/9/2024 |
| Electrical — Fixtures | Corrections | Two consecutive corrections; buyer's electrician needed ($5K-$15K) |
| Plumbing — Rough | Partial | Bathrooms + W/D partially approved 5/2024 |
| HVAC — Mini Splits | Partial | Rough partially approved 6/5/2024; not finaled |
| Insulation | Approved | Fully approved 8/30/2024 |
| Drywall | Partial | Hung/nailed, partially approved 9/17/2024 (last inspection) |
| Finish Work | Not Started | Tape/mud, flooring, cabinets, counters, paint, appliances |
| Final Inspections | None | No C of O issued |
Source: LADBS Permit & Inspection Records (8 permits, 36 inspections reviewed). Last inspection: September 17, 2024.
The primary pricing methodology is the Residual Value / Development Spread Analysis, which answers: what can a buyer pay today and still achieve their required return? This method is appropriate because the property generates no current income and requires significant capital investment to stabilize.
Formula: Max Purchase Price = (Exit Value / (1 + Required Spread)) − Renovation − Holding Costs − Closing Costs
Exit Value: $2,035,000 | Buyer's Required Spread: 20% | All-In Cost Ceiling: $1,695,833
| Light Renovation | Base Case | Heavy Renovation | |
|---|---|---|---|
| Renovation Cost | $250,000 | $300,000 | $400,000 |
| Exit Value | $2,035,000 | $2,035,000 | $2,035,000 |
| All-In Ceiling (20% spread) | $1,695,833 | $1,695,833 | $1,695,833 |
| Less: Renovation | ($250,000) | ($300,000) | ($400,000) |
| Less: Holding Costs (6 months) | ($45,000) | ($45,000) | ($45,000) |
| Less: Buy-Side Closing Costs | ($20,000) | ($20,000) | ($20,000) |
| Max Purchase Price | $1,380,833 | $1,330,833 | $1,230,833 |
| Per Unit | $345,208 | $332,708 | $307,708 |
Comps are organized by relevance to the subject: floor comps establish current-condition value, mid-range comps bracket the expected trading range, and ceiling comps validate the stabilized exit value.
| Address | Zip | Price | $/Unit | $/SF | Built | Sale Date | Condition / Notes |
|---|---|---|---|---|---|---|---|
| Floor Comps (Current-Condition Value) | |||||||
| 818 N Hoover St | 90029 | $1,000,000 | $250K | $231 | 1937 | 12/2024 | 2BR units, no renovation data |
| 812 N Ridgewood Pl | 90038 | $1,200,000 | $300K | $469 | 1922 | 5/2025 | 100% vacant, 1922, OZ, no reno |
| 1159 N Virgil Ave (Sale 1) | 90029 | $1,240,000 | $310K | $359 | 1924 | 1/2025 | 1BR, W/D, 2 vacant, repiped |
| Mid-Range Comps (Expected Trading Range) | |||||||
| 1531 Silver Lake Blvd | 90026 | $1,350,000 | $338K | $249 | 1929 | 11/2025 | 2BR, in-unit W/D, R3 zoning |
| 1834 N Van Ness Ave | 90028 | $1,400,000 | $350K | $377 | 1919 | 2/2025 | Fixer, cash buyer, TOC 3 |
| 4616 Kingswell Ave | 90027 | $1,436,500 | $359K | $392 | 1905 | 7/2025 | Los Feliz, 50% vacant |
| 1159 N Virgil Ave (Sale 2) | 90029 | $1,563,000 | $391K | $452 | 1924 | 2/2025 | Flip: resold 37 days after Sale 1 |
| Ceiling Comps (Stabilized / Exit Value) | |||||||
| 5540 Lexington Ave | 90038 | $1,885,000 | $471K | $353 | 1917 | 5/2024 | 2BR, in-unit W/D, R4/T4, dev site |
| 4426 Price St | 90027 | $2,400,000 | $600K | $485 | 1926 | 9/2025 | Los Feliz, 2BR, W/D, A/C, premium |
| 837 N Harvard Blvd | 90029 | $2,900,000 | $725K | $518 | 2020 | 6/2025 | 4BR/3BA, new construction, quartz, W/D |
Source: TheMLS verified sale records. 22 total comps reviewed; 10 most relevant shown. All metrics calculated from sale price.
| Income | |
|---|---|
| Gross Scheduled Rent (4 x $3,100/mo) | $148,800 |
| Less: Vacancy (5%) | ($7,440) |
| Effective Gross Income | $141,360 |
| Expenses (28% of EGI) | |
|---|---|
| Property Taxes (reassessed) | ~$16,500 |
| Insurance | ~$4,500 |
| Water / Sewer / Trash | ~$4,500 |
| Maintenance & Repairs | ~$3,000 |
| Management (5%) | ~$7,068 |
| Reserves | ~$4,013 |
| Total Expenses | $39,581 |
| Returns | |
|---|---|
| Net Operating Income | $101,779 |
| Exit Cap Rate | 5.00% |
| Stabilized Value | $2,035,000 |
| Per Unit | $508,875 |
| Per SF | $484 |
| Feature | Comp Benchmark |
|---|---|
| 2BR/1BA, open concept, ~1,052 SF | La Cresta 2BR: $2,800-$2,995 |
| In-unit washer/dryer (gas) | +$100-$150/mo premium |
| Mini split HVAC (A/C + heat) | +$50-$100/mo premium |
| New quartz kitchen, modern bath | Comparable to new-build interior |
| Garage parking (1:1) | +$75-$150/mo vs. street parking |
Qualifying investors can defer and reduce capital gains taxes by investing in the property. If held for 10+ years, all appreciation on the OZ investment is tax-free. This effectively increases purchasing power and improves returns for the right buyer profile.
The R3-1XL zoning with TOC Tier 3 allows up to 70% density increase with an affordable housing set-aside. Combined with AB 2334 and AB 2097 (which reduce parking requirements), a future buyer could explore significant densification of the 6,250 SF lot.
Under SB 1211, the property may qualify for up to 4 detached ADUs by right, subject to lot coverage and setback requirements. This creates long-term development optionality beyond the existing 4 units.
East Hollywood continues to see institutional investment and neighborhood improvement, driven by Metro rail access and proximity to Silver Lake, Los Feliz, and Hollywood. New construction in the same zip code (90029) is achieving $4,500-$4,900/mo for 4BR units and $5,000-$6,750/mo for luxury product. The subject's stabilized rents of $3,100/mo leave room for organic growth.
| Milestone | Timeframe |
|---|---|
| Sign listing agreement | This week |
| Finalize marketing materials | 48 hours post-signing |
| List on MLS, CoStar, and LAAA buyer network | Within 3 business days |
| First showings / open house | Week of March 24 |
| Offer deadline | 3-4 weeks post-listing |
| Accept offer / open escrow | By April 21 |
| Close escrow (30-45 day close) | By June 1 |
Commission: 5% of sale price
Expected buyer profile: Local developer or value-add investor with GC relationships, paying cash or with bridge/hard money financing. Not a 1031 exchange buyer (no current income). The deep value-add buyer pool in East Hollywood will compete aggressively for a permitted, mid-construction fourplex with premium amenities already roughed in.
Subject to interior inspection. Renovation cost estimates are based on LADBS permit and inspection analysis and exterior observation. A site visit with a licensed general contractor is recommended to confirm renovation scope and cost prior to listing. All projections are estimates; actual results may vary.