Gary & Rosalind Riley

Household Realty Development Group LLC in Murrieta, CA

Gary & Rosalind Riley with Gary & Rosalind Riley

This property was a pre-foreclosure that was built in 1897. Very little work had been done on the property since it was built over 100 years ago. Our initial estimate for repair costs was $80,000 but of course, due to the age of the property we went way over budget. However, we purchased the property at such a low price ($200,000) that we were comfortable with the expanded budget because the deal had quite a bit of potential profit. During the renovation, we discovered two major issues that impacted our profitability. The property is designated as a historic resource in the city of LA which makes permitting & exterior modifications much more difficult and costly. The property was also built on a brick foundation which is not deemed seismically sound based upon the current city of LA building codes. As a result, we discounted our $505,000 original asking price to $490,000.