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Updated about 3 years ago on . Most recent reply

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13
Posts
2
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Samuel Gates
  • Rancho Cucamonga, CA
2
Votes |
13
Posts

Should I buy my grandparents house and put multifamily units?

Samuel Gates
  • Rancho Cucamonga, CA
Posted

Hello, 

I have a question about a business decision. My family wants to sell my grandparents home in Los Angeles it will be split between all the kids (grandchildren if the parent is no longer living). They are liking on Zillow and seeing a 800k price and want that split 8 ways. 


About the property:
 No maintenance has been done on the property for over 20 years, the property is over 100 years old, 2 bed 1 bath, the chimney is falling off, the basement is flooded and the roof is sunken in. and it is near USC.

Goals: To build a multi-family apartment since I do not believe it is worth it to remodel the house. 


I am confused on what is the best strategy to take. I know that I want the house appraised to get the true value of the property as well as what needs to be repaired as well as what it would cost to build a multi-family apartment. Any insight or help would be much appreciated.

  • Samuel Gates
  • Most Popular Reply

    User Stats

    75
    Posts
    59
    Votes
    Dan Sundberg
    • Real Estate Agent
    • Sacramento, CA
    59
    Votes |
    75
    Posts
    Dan Sundberg
    • Real Estate Agent
    • Sacramento, CA
    Replied

    Like many of the other folks who have posted here, I think the answer depends on your experience level. Sounds like a high risk high reward type project. Pulling off a multi-family development in LA near campus could be super profitable, but will probably take a few years and an intense amount of money. 

    If you are a relatively new investor, and assuming you are 1 of the 8 inheritors, it would be better in my opinion to sell the house, and take your $80k - $100k as a seed fund to invest in single family and small multi-family deals. This way you could get your money working much faster and start doing projects that will let you build experience to take on progressively larger projects. 

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