New Member from Los Angeles, California

[Annunciata R.]

Hi All, I hope I am posting in the right section. I am new to the site. After about 4 years of placing offers on good deals relentlessly from 2008 in the LA city area, I finally had a break and purchased my 2500sf commercial real estate in 2012.

I really wasnt going to wait for a similar amount of period to pass for my next purchase so I went out to my first tax deed auction in October of last year and purchased 10 heavily discounted lots. I have to wait a year before I can start the buildings and I already have had one rescinded.

But as the auction is only once a year, I aim to purchase about 10 to 15 lots each year while building at least 5 to 10 homes each year some of which I will hold others I will sell. Biggest interest is sustainable homes and energy saving so Im hoping to get into building some homes from recycled containers and also investigating subterranean homes as this will deal with my hillside lots.

Hope to hear from people with similar interests.

[Ernest Bovenizer]

Hi @Annunciata R.,

I am an engineering geologist working in the LA area. Hillside development is very tricky and there are many, many lots out there that are either useless for development or currently undevelopable from a cost/benefit standpoint. Some of the questions you need to ask when you are looking are...

Is it on sewer? Septic systems on hillsides add a tremendous amount of cost. It may even be impossible to develop the property due to shallow groundwater or an impermeable subsurface.

Is it in a landslide? This can quickly destroy any development plans for various reasons.

How many sq.ft. can be built on the lot? LA has a pretty strict hillside ordinance that limits your square footage according to how steep the terrain is.

Is there access to the property? I have seen roadways cost three times what the actual house costs to build.

Is there deep uncertified fill on the property? This can significantly increase the cost of your foundations.

Hillside construction is significantly more expensive than flatland due to shoring, excavation, seasonal grading restrictions, and deep foundation issues. It is my experience that raw hillside lot development in Los Angeles is about as tricky as it gets. That said, most lots can be developed with the right combination of knowledge, ingenuity, and of course, $. Drop me a line if you had any questions, I would be happy to help.