Semi-rural Loan Request

Executive Summary

Subject property: 709 Edison Ave., La Junta, CO 81050
$100k purchase in LLC in 09/21
$20k down, $80k seller financed I/O note. $80k payoff
$75k rehab (never started)
Total Financing Requested: Max % of ARV allowable – need $155k - 52% ARV
Follow this link to CMA, BPO, Appraisal, and Pics

Property

In urbanized area of rural market. Largest by far, the subject property is in a small, quiet nook surrounding a public park. Not the worst but far from best curb appeal on the block. It features ornate wood trim throughout. Much of it, around window casings and door trim painted, there’s still lots of it to admire. It is a SFR to MFR conversion, which can easily be reverted by simply removing the additional kitchens. No structural modifications noted. It has newer electrical as in, no knob and tube. Solid bones. Little to no settling. Homes sell for top of market with little to no upgrades. Builder grade will do.

Repair

Needs a new roof.
Kitchen sewer line replacement, likely upper-level supply line as well.
Could use cabinets and vanities throughout, but they’re in solid shape.
Just builder grade updates throughout will do.
Needs exterior and interior paint with minor drywall and no siding repair. Some flooring above and below grade in the main home and ADU.

Value

$300k ultra-conservative ARV.
1. Comps within +/- 20% of square footage do not exist, much less the same floor plan.
2. Vintage is not a problem. Lots of old stock.
3. See CMA Comp #1 at 522 Raton Ave, a very nice remodel that sold for $300k on 05/23. Inaccurate due to size differentials in value, it’s probable the subject, which is a similar floor plan and 649 sf above grade area larger, plus an ADU, and on a quieter street is superior.

Experience