Advice from experienced flippers to a wanna-be LA flipper!

[Luke Marron]

Hello 

I am seeking general advice from any experienced rehabbers (LA rehabbers preferably) that are willing to share their cold-hard truths or suggestions to someone currently in search of rehab opportunities in and around LA county (orange county too).

I am in a pretty fortunate position regarding access to financial capital and am able to jump on deals, up to fairly substantial price. I am grateful for this benefit as I know this is a major hurdle for many. I have lived in Los Angeles for over a decade now and have loosely be involved w RE off and on over that time but have always maintained a pulse on the market so am fairly familiar with the different areas and also the challenges that exist here namely the extreme competition finding deals and the substantial capital required.

I have rental properties and will continue on that path further as well but have always been intrigued by the idea of taking a junker and giving it new life along with the local economic benefits doing so can provide. Obviously making money is nice too.

I have real estate experience but not construction experience. My main question is what are your suggestions to someone that has minimal construction knowledge (and experience with contractors) but does have capital to comfortably invest that wants to rehab houses. I am looking in the $600-850K purchase range for houses that I could add value to with sq/ft additions in the $150-200k rehab cost range. Id shoot for ARVs around 1.2 million +. Sorry for the very broad question but am hoping for feedback anywhere along the spectrum on factors I should consider. Thanks!