The comps in this area will pull a higher "per square foot" price than this property will actually generate, due to the proximity of the higher end Larchmont comps, versus the comps on the east side of Western...so I wouldn't use that metric exclusively when determining a renovated value.
With that said, this home fits the "buy the worst house on the block" formula, as most of the homes on this immediate block are well maintained and the exteriors are upgraded. You would definitely need to invest some bucks in the curb appeal of this home, and I think it could measure up to it's neighbors very easily.
This is a good, "bread and butter" area of LA. I've sold homes in these streets to hipsters that were priced out of the uber cool Silver Lake area and found that even Echo Park has gotten so competitive that it's tough to get an accepted offer. Most of these homes were built in the early 1900's and are modified Craftsmans and/or California bungalows. This particular house needs some exterior love to bring back that cute bungalow look that the rest of the homes on the block have...then you'll attract your buyers. Design sells.
Additionally, depending on what you're able to buy it for, I would seriously consider adding a 2nd bathroom, as that will pay for itself in spades.
The closest comp is 119 S. Gramercy...but note the differences: this home was listed in Jan 2010 for $749k and sold 126 days later for $600k (after reducing it to $649k). However, this home is cherried out and is a de facto Craftsman with the wood details in place, which commands a higher price...but I'm sure that the one bath was an issue. However, the inventory in LA is down almost 19% year-to-date so that should be a positive for you.
Bottom line, you need to steal this house so that you can really sink some money into in and bring it up to snuff so that you can list it in the $550k-$649k ballpark...but that will require a serious investment into the property to get the higher number (based on the look of the outside, I've got a feeling that it needs a lot of work). Cherry it out, stage it, and of course, work with a great listing agent that knows how to market it.
If you need some assistance with renovation, i.e., contractors, plans, permit info, work crews, etc., I'm happy to help. If you're new to the flip game, I would also suggest that you partner up with an experienced partner who has done exactly this type of job before and can just walk in with a crew at the ready, navigate the permit issues quickly and get it back on the market fast. This is my backyard, so please feel free to contact me for any additional info...and to see if you'd like to work with me to buy it and/or sell it for you! Best of luck!
Keller Williams Realty