Accessory Dwelling Unit

[Shawn Luong]

Investment Info:

Small multi-family (2-4 units) other investment.

Purchase price: $330,000
Cash invested: $15,000

Small lot on a corner lot. Adding a duplex to the existing duplex. One year in the waiting because of the pandemic, plan check has been approved by Building and Safety, but the city of LA Bureau of Sanitation and Bureau of Engineering has not cleared the very simple rainwater plan which is standard with a flower bed.

What made you interested in investing in this type of deal?

Great value add with the additional units and great cashflow when the bureaucracy at the city of LA has their act together to decrease the housing shortage.

How did you find this deal and how did you negotiate it?

REO in the MLS. Worked out the cloud in the title with the title company

How did you finance this deal?

standard.

How did you add value to the deal?

Adding 2 units to the existing parcel.

What was the outcome?

Still waiting for the LA Bureau of Sanitation and Bureau of Engineering to sign off. Building and Safety has cleared the plan 6 months ago. Cash flow will double from the current $3500 to $7000 while investing $160,000 for the construction soft and hard costs.

Lessons learned? Challenges?

Bureau of Sanitation and Bureau of Engineering are the bottlenecks in the city of LA, not Building and Safety or Planning. These 2 bureaus claim that they do not have enough staff to handle the requests. Theirs are the simplest in the process and ....