Investing in Short Term Luxury Homes
The World's Most Desirable Addresses
The Hollywood Hills and Beverly Hills area have long been
Home to the Rich & Famous.
From movie stars and rock stars, to pro-athletes and titans of industry, Hollywood and Beverly Hills are the glamour capital of the world.
With the world’s best weather, (over 300 days of sunshine per year and low humidity), a home in the Hollywood Hills is the ultimate reward.
Housing prices in the Hollywood Hills and Beverly Hills have historically outperformed most residential markets -- Worldwide.
Increasing more in up-markets ~ Falling less in down markets
Marilyn Drive Beverly Hills
The Growth of the Short Term Rental Market
The Luxury, Short Term, Home Rental Market, in the Hollywood Hills, is among the World’s Most Robust.
Demand has, Historically and Consistently, Outstripped Supply.
And Demand has Increased in Recent Years, as New Disruptive Technologies have Enabled the Growth
of a Highly Desirable and Easily Booked, Alternative to Renting a Luxury Hotel Suite.
Solar Drive, Hollywood Hills West
The Perfect Storm
Limited geographical area of demand -- approx. 7 square miles.
Strong historical base of support from entertainment industry for filming and short term residential rentals.
Steady Increase in International Demand -- investors and families from Asia, Australia, Middle East and Europe as well as the U.S.
Airbnb, VRBO/Home Away and others have created
efficient global e-commerce platforms and
increased market awareness and demand for short term rentals.
A well-priced, well appointed and well marketed,
luxury short term rental home can average up to 20 rental or more
rental nights per month.
TriCanyon homes generally recoup all monthly carrying cost (mortgage, taxes, utilities, maintenance) in 9 to 11 rental nights
per month... everything else is profit.
Short term rental revenue can be double or more than that of a year-long lease and average 20% -30% annual, net,
cash return on investment...
...And still allow an investor/homeowner to have
ample time in the home to enjoy it.
And provide an ongoing capital appreciation opportunity.
Mt. Olympus, Hollywood Hills West
Hollywood Hills & Beverly Hills
Where Value Meets Luxury and Location
Our Criteria for Selecting a
Hollywood Hills Luxury, ShortTerm, Rental/Investment Home
V and 5 P’s
View The Hollywood Hills view is
like waterfront property...
Exclusivity, limited supply, and that
view you never tire of enjoying.
Proximity Just minutes from the Sunset
Strip and the best of L.A.’s
restaurants, shopping and nightlife.
More than anything, proximity drives
L.A. property value at the upper levels.
Privacy Owners and Renters of Luxury Estates
want Gated Properties with a yard
and pool that neighbors
cannot see into.
Pool With the L.A. weather and lifestyle,
a pool is a must have.
Presence The WOW Factor that makes you
want to live there... and everyone
admire your home.
Price We look for homes that are
well-priced to yield 20% - 30%
annual, net cash on cash, return on
investment (IRR) after all expenses,
and are well-positioned for capital
Doheny Estates, Hollywood Hills West
The Penthouse, Wilshire Corridor, Westwood
Solar Drive, Top of Runyon Cyn
Courtney, West Hollywood
Finding Value in the Hollywood Hills
Sunset Plaza Drive, Hollywood Hills West
Home prices in the Hills, with the criteria TriCanyon looks for, generally range from $700 per square foot to over $2,000
per sq. ft., depending on the neighborhood, land (views, location,
lot size and % flat) and the size and condition of the home.
New and fully renovated homes generally cost $1,200 per sq. ft. and up, depending on location, particularly if they have the
V and 5 Ps; Most homes priced over $2,000 per square foot have an exceptional amount of land (for the area), jetliner views,
and are larger than 8,000 square feet.
At TriCanyon, we believe there is excellent value in homes between 2,800 – 5,000 sq. ft. and priced between $2 million - $4.5 million, costing $700 - $1,000 per sq. ft.
We like ugly ducklings... homes in good condition that need cosmetic work to look their best. These homes tend to sell for a discount to full value. With relatively little money in improvements, they can be made pristine. “Presence” is the easiest “P” to add or fix.
We like smaller homes, on great land, with room to grow…
Home additions, with high-end finishes, can readily be built for $250 - $500 per sq. ft., creating a potential profit of $500 -$750 per sq. ft.
on the new space, in a neighborhood where renovated and new homes sell for $1,000 - $1,300 per sq. ft.
Doheny Estates, Hollywood Hills West
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