💰 Deals of the Week: California Foreclosures & Value-Add Opportunities
21 units across 4 properties with development upside, and distressed pricing creating instant equity opportunities.
This week’s lineup features a pre-foreclosure Van Nuys quadruplex on an LAR3-zoned lot with potential to build 12-20 units.
Also on deck: a foreclosed mixed-use building near SoFi Stadium where the bank’s $308K markup leaves serious negotiation room.
Then, an Oakland duplex with garage framed for 3rd unit conversion, priced $210K below original ask.
And finally, a 5-unit multifamily in Stockton with ultra-low property taxes.
Free readers get the Pre-Foreclosure LAR3 Development Play breakdown.
Paid subscribers get all four California distressed multifamily deals.
Passive Cash-Flowing Properties
Buy shares of investment properties, earn rental income & appreciation for anywhere from $100 to $20k — let Arrived take care of the rest.
🏗️ Pre-Foreclosure Development Play
Pre-foreclosure quadruplex on 10,107 sqft lot = 12-20 units by-right.
Distressed pricing + $48K rental upside + deep lot = developer’s dream.
🏚️ Mixed-Use REO Flip Opportunity
Bank bought at $192K, selling at $500K = room to negotiate.
2 apartments + 2 commercial spaces = diversified income streams.
🔨 Duplex-to-Triplex Value-Add Fixer
Pre-foreclosure fixer with garage already framed for ADU conversion.
$210K price drop + BART access = Bay Area value-add opportunity.
💎 Ultra-Low-Tax Multifamily REO
Foreclosed at $332K, listed at $561K = negotiate down from inflated ask.
Ultra-low taxes + Central Valley demand = hidden cash flow gem.
6240 Hazeltine Ave, Van Nuys, CA 91401
$1,099,000 | 4 units | Quadruplex | 2,784 sqft | 10,107 sqft lot
🏚️ Pre-Foreclosure LAR3 Zoned Value-Add with Development Upside
Built in 1955, this quadruplex features four 2BR/1BA cottage-style units with private entries, attached 1-car garages, and three detached buildings.
Rare LAR3 zoning unlocks significant development potential on an oversized 50’ x 202’ lot.
💡 Pro Tip:
LAR3 zoning supports ~12 units by-right, up to ~20 units with TOC Tier 3 incentives (buyer to verify)
Rear unit delivered vacant = ideal for owner-user or premium tenant
Separately metered gas/electric = operational flexibility
Deep lot (202’) provides excellent massing/design flexibility for ADUs or expansion
💰 Financial Snapshot:
Current Ask: $1,099,000 ($274,750/unit)
Price per Sqft: $395
Tax Assessed Value: $1,289,366
Annual Property Taxes: $15,861
Lot Size: 10,107 sqft (0.23 acres)
Current Monthly Income: $6,400
Market Rent Potential: $9,500/month
Current Gross Yield: ~7%
Pro-Forma Gross Yield (Market Rents): ~10.4%
Current Occupancy: 100% (month-to-month tenants)
⚠️ Heads Up:
Pre-foreclosure/auction property - unpaid balance $1,071,715
In Notice of Default status since 8/5/2025
Price dropped $96K on 11/11 (from $1,195K)
169 days on market
All units occupied month-to-month = reposition opportunity but requires tenant management
🏆 Best For:
Developers seeking LAR3 entitled land with immediate TOC Tier 3 upside
Value-add investors comfortable with distressed asset acquisition
Owner-users wanting a vacant unit + rental income (3 units generating cash flow)
1031 exchange buyers looking for pre-foreclosure opportunity
Why it works:
$48.5K immediate rental upside by pushing to market rents
Development potential: 12+ units by-right, potentially 20 with incentives
Prime Van Nuys location near freeways, schools, transit, and employment hubs
Separate utilities = lower operational headaches for long-term hold