Los Angeles: Contemplating partnering with relative on a MFH as first investment

[Francesca S.]

Hi All!

Looking for financial and "is this property a good deal??" advice on my first forray into real estate investment.

Financials: 

The plan is to work with a relative to get a HELOC on a primary residence in the Bay Area. We would use the money as a down payment and for any renovations necessary for the property. Then within 6 months, refinance to a 30 year fixed loan.

• This is how I hope the finances of the deal will play out. Does anyone have tips on the HELOC / refinance method for buying investment property?
• My relative is worried that the bank will not refinance the property after , or it will be very difficult to get a good rate. Is there anything that would make it difficult for us to get a traditional loan after?
• I have read some articles which mentioned HELOCs with low fixed rates for the first few years. Does anyone know more about where to find this or if this is true? 

The Deal:

Location: 91411, Van Nuys, CA. I rent a few blocks from the property, so I am familiar with the area. the deal is in one of the more nicer pockets of the Van Nuys area. 

List Price: 649,000 (though I think this is overpriced, and would probably offer maximum 600,000 or even 575,000

Property: 3 units. a 3/2 House (2000) with a duplex (2/2 each, $1008 and $1195) in the back of the lot.

Annual rent is 48,000

This is all I know so far about the property as it just came on market, and it is drive by only. 

• What do you think about this deal?
• What can I do about the drive-by only? I want to be able to see the property and the condition of the interiors to get a better estimate of how much work needs to be done, and whether I can increase rents. But I understand that interior inspection is only after you put in offer. What should I do in this case?
• With the limited information, I am unsure of how to proceed analysis on this property, though from an initial look...I am liking the numbers in comparison to other properties?

Just a little confused and a lot of questions.... help would be much appreciated. 

Thank you!

Francesca