Case Studies
A look at two completed DJC projects — full deal metrics, photography, and narrative showing how the platform creates value from acquisition through long-term hold.
Turning Deferred Maintenance Into Long-Term Value
1146 Sanborn Ave is a two-house property in Silver Lake that demonstrates DJC's core investment strategy: acquire unique residential assets in high-demand neighborhoods, renovate efficiently, refinance quickly, return investor capital, and hold for long-term upside.
DJC acquired 1146 Sanborn Ave in April 2022 for $1,050,000. The property consisted of two separate small houses on one lot in Silver Lake and suffered from significant deferred maintenance. DJC identified the opportunity to renovate the property, improve rental quality, and reposition it as a long-term residential investment asset.
A $350,000 renovation budget was submitted to the lender. After inspection and appraisal review, the lender approved a 10% down loan with a 100% construction line of credit based on an estimated after-repair value of $1,850,000.
The renovation was completed in approximately 4 months. By month 5, DJC completed a cash-out refinance based on a final appraised value of $2,000,000. The partnership refinanced at 75% loan-to-value, returning 100% of the initial investment plus approximately $150,000 in additional funds to the general and investor partners.
Rather than selling, the partnership continues to hold the property, benefiting from modest cash flow, long-term appreciation, and tax advantages.
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This deal reflects the DJC model: find underutilized residential assets in strong Los Angeles neighborhoods, execute quickly, create equity, return capital through refinance, and hold for long-term value.
Unlocking Hidden Land Value Through Renovation, Lot Separation, and New Construction
The Atwater Stable House project demonstrates DJC's ability to create value beyond a standard renovation — renovating the main house, separating the extra lot, refinancing, entitling a new SFR, and completing both homes as long-term rental assets.
DJC investors acquired the Atwater Stable House project in November 2022 for $1,100,000. The property included a deferred-maintenance 1,700 sq. ft. home on an approximately 8,000 sq. ft. lot, along with an additional 4,000 sq. ft. lot tied to the property.
DJC identified an opportunity to create value in two phases. First, approximately $275,000 was used to renovate the main house and reposition it as a stronger residential asset. Second, DJC quickly untied the additional lot, creating a separate buildable parcel.
Approximately 5 months after purchase, the renovated main property appraised for $1,950,000, not including the newly separated 4,000 sq. ft. lot. Investors refinanced at 70% LTV, returning 100% of their initial investment plus approximately $75,000 in additional cash-out proceeds.
The additional cash-out proceeds were used toward soft costs to design and entitle the newly separated lot for a new approximately 1,500 sq. ft. single-family residence. Once plans were approved, DJC secured 100% construction financing based on the paid-off land and a projected completed value of approximately $1,500,000 with a $600,000 construction budget.
Both homes were completed and placed into long-term financing. DJC intentionally used lower leverage to support stronger cash flow from rents. In total, the project created approximately $1,700,000 in on-paper profit and equity value while requiring only the original down payment on the primary property.
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New SFR — Completed
The Atwater Stable House project reflects the DJC model at its best: identify hidden value, move quickly, use financing strategically, execute in-house, return investor capital, and hold high-quality Los Angeles residential assets for long-term cash flow, appreciation, and tax benefits.
Creating Value Through Renovation and ADU Conversion
1400 N Orange Drive demonstrates DJC's ability to identify underutilized residential space and convert it into additional income-producing value. DJC acquired the property for $950,000, completed a major renovation and ADU conversion, and refinanced at a $2,100,000 appraised value, returning the full initial investment plus additional cash-out proceeds.
DJC acquired 1400 N Orange Drive for $950,000 with a planned renovation budget of $385,000. At acquisition, the property included underutilized space within the main house that was not contributing to the property's full rental-income potential or valuation.
DJC renovated the main residence and converted the underutilized space into an ADU, creating an additional rentable unit and improving the long-term income profile of the property.
The project took approximately 10 months to complete. After completion, the property appraised for approximately $2,100,000. DJC completed a cash-out refinance at 75% loan-to-value, returning the full initial down payment of approximately $180,000, plus an additional $175,000 in cash-out proceeds.
Rather than selling, the ownership group retained the asset, allowing investors to benefit from continued rental income, appreciation potential, principal paydown, and long-term tax advantages.
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After
The 1400 N Orange Drive project reflects the DJC model of finding hidden value within existing Los Angeles residential properties. By renovating the main home, converting underutilized space into an ADU, refinancing at the improved value, and holding the asset long term, DJC was able to return investor capital while preserving ownership of a higher-value income-producing property.
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