February has gotten off to a bit of slow start here in Venice. While the end of January saw quite a few good new listings hit the market, the first week of February has been surprisingly quiet. This is good news for sellers, as the few homes that do come on the market will be in greater demand, but this will keep our sales volume down.

Despite the lack of inventory, there was one new listing that caught my eye. This duplex at 668 Westminster Ave is a foreclosure with two identical 2 bedroom, 1 bath units on top of each other. Both units are in move-in condition, but could use some updating in order to maximize rent. In today’s rental market, both units could easily rent for $2,500 once updated.

The location of the property is not the best in Venice, but it is still close enough to Abbot Kinney to entice renters who want to live in the “trendy area”. The structure is well positioned on the lot as well, allowing for plenty of yard space before you reach the two-car garage off the alley.

The only thing I don’t like about the property is the price. It seems a bit high for what it is, especially with this similar listing at 612 Westminster having been on the market for 182 days at a slightly higher price. Let this be a note to all buyers out there: foreclosures are not always the best deals.

Still, if you were able to get the duplex at $1,050,000 (which I don’t think is out of the question) it would make sense as both an investment, and as an owner-user. Assuming you would get a 30-year fixed rate at 5% – could even be lower right now – with 20% down, your monthly payments would be roughly $4,500. The duplex generates $5,000 a month and when you take into account the upside in rent as the Venice market improves, the tax write off on the interest, and the ability to have renters build equity for you, this property makes a lot of sense.

And of course if you wanted to live in one of the units, who wouldn’t want an additional $2,500 a month to help ay the bills? Remember your interest rate will improve as an owner-occupier in this situation as well.

The Week in Review: A Look at What’s New and What’s Sold

New Listings:

1. 1319 Abbot Kinney for $5,700,000.

2. 858 Nowita Place for $1,875,000.

3. 2116 Zeno Place for $1,800,000.

4. 2923 Yale Ave for $950,000.

5. 1009 Palms Ave for $688,000.

Sold Listings:

1. 609 Rose Ave for $1,750,000.

2. 1016 Rose Ave for $650,000

If you have any questions about this top property or any of these homes — or the market in general — please do not hesitate to contact me.