Small Multi-Family Los Angeles

[Jamie Garcia]

Anyone buying or recently purchased any small Multi-Family recently here in the Los Angeles Area? Would love to hear about it.

[Jonathan Taylor]

@Jamie Garcia

I just purchased a fourplex in NELA in January.

It’s a tough market but possible if you aren’t in it for cash flow as a first time buyer. Below are the details of my deal. Feel free to ask any questions.

Property

1 x 3/2.5

2 x 1/1 (I will live in one)

1 x studio

Purchase price $725,000

Closing costs $30,950

Rehab estimated $165,000 (this is wrapped into my financing)

Pro forma rents

3/2.5: 3,000

1/1: 1600

Studio: 1400

Total 6,000

This property was listed on the MLS. I focused on desirable adjacent areas and properties that were on the market more than 100 days. I studies the area I wanted to buy in and looked for properties that were priced too high for flippers but still needed a lot of work. My goal was to find a motivated owner who didn't have the cash to fix the place up.

My loan was NACA (naca.com) which allowed me to buy without 20 down and I did not get PMI. I can go further into that program if you're interested.

My loan rate is 3.375% 30 year fixed.

Good luck and just be persistent.

JT