Open Houses in The Valley - WOW

[Ian Dunross]

The idea of investing in my area of the SFV seems attractive for a number of reasons. Since I live in the area, I can check on properties in person on a moments notice, house hack if needed, be eligible for "primary residence" financing etc..

Even though the cap rates and cash flow in SoCal are lacking to say the least, I decided to check out some open houses. This is not a fable, parable or embellished in any way whatsoever. 

Open House #1 - SFH listed in the 800s. Realtor says it was a rehab/flip which was done in haste while cutting corners. I could hardly believe my ears. This was from the realtor that was in charge of SELLING THE HOME. In showing me the shoddy workmanship he began to peel paint from a door as he pointed out the defects throughout the home. He offered to represent me as a buyer in addition to broker a loan for me.

Open House #2 - Vacant/rehabbed SFH with an attached ADU. I'm walking up the driveway and see the realtor exit the house with the phone to his ear and a worried expression on his face. He paused just long enough to say "Sir are you here for the open house? Please don't enter the property".

I looked through the front door though the living room and onto the patio. There was a collection of personal belongings in on the back patio which included a car key, library card and syringes. The realtor said those items weren't there the day before so someone must have broken into the patio for some R&R during the night (photo attached).

Open House #3 - Duplex in the 700s with a detached garage (possible ADU) and a decent sized back yard. Both units were livable but needed a lot of cosmetic upgrades. In addition to the duplex there was an un-permitted 3rd unit in the front yard (photo attached).

I don't think I'll be attending any more open houses.