In escrow on Cypress Park Duplex

[Mario F.]

Hello everyone, I've been frustrated over the years about how expensive the LA market is so I came here with questions on what the best way would be to get into a property.  Buying a Duplex came as very common advice and so now I'm officially in escrow on a duplex that needs ALOT of work.  

Does anyone have any opinions or advice on Cypress Park in Los Angeles? What attracts me is the opportunity for appreciation due to area revitalization. There are a lot of new developments happening and along with the LA River revitalization, it seems to be a great opportunity.  This duplex is one block away from the River. Any thoughts on this area?

The Duplex was made in 1928, so as you can imagine, it needs tons of work. Each unit is about 450 sq ft   each, which is pretty tiny.  The price is 410k.  2661 Alice St Los Angeles, CA90065

So since this is my first property, I'm pretty nervous and am seeking some advice and guidance from these great forums.  It seems like a good way to start off my investing career but wanted to see what you all thought before I take the dive.

There is an investor who just moved his family into the lot next door. He is doing a pretty big rehab on his house, which would make my lot look nicer. 

Also, there is a three car garage in the back,which I'd like to convert into a loft eventually and rent out both units.  There would still be enough space on the lot to build a three car carport so I'm thinking it could work.  Any thoughts on this?

Cypress Park is very close to Downtown LA, which might give me a huge location advantage. My plan is to try Airbnb instead of a traditional lease. I heard I could make more that way.  We have rent control in the area, so that's another reason why I'd like to avoid leasing until the area starts to thrive more. 

Also, my real estate agent has an amazing track record in finding homes for some of my friends and co workers in the revitalized north east LA area, Highland park, etc. So because of this, I feel grateful and comfortable with him. He has his own inspector and contractor that will look at the property for any serious issues. Should I appoint my own inspector though? My brother is telling me that I should. 

 My agent is a flipper and says he will walk me through the rehab on the duplex. So from an educational standpoint, this could be golden.  I'm sharing this with you all because I'm new and I'd like to see if my line of thinking on this property is wise.  Your thoughts on this would be greatly appreciated!

Thanks!

mario

[Manolo D.]

Mario Furmanczyk I believe that I/we walked that property, couldn't remember with who. Don't put your hopes up on that loft, it might not pass building and safety easement requirements, I suggest you do a little research before considering that option. 450 sf is a bit small for 1200-1500, double check your figures. I remember one person here on BP taught me something I couldn't forget, do a little more digging if something is fishy, to me, your agent is a flipper, and he is not biting on the deal, so to him, the deal might not be worth it, think long and hard of that agent and the deal. A bunch of agents will promise you the moon to get you to sign, the old lady is one hint in my opinion. Inspector should be coming from you, not from anyone, you can use the reports from someone, but be careful.