Should I buy this deal

Question

Asking: $529,950

Estimated rehab: $75k

EMD $35k

COE: Feb 15, 2023

This is a duplex in Lynwood, Ca. Front house is 2/1

Back unit 2/1 sits on top of 2 car garage. R3 zoning.

Lot 7,000 sq ft

Last 26 days of similar comps $709k

This is Los Angeles. Rent questionable. The 70% rule says to max offer $497k

I was still thinking of offering, & possibly using Springboard lending. Any suggestions??

Should I pursue this property??

Bob S. · Answer

Depends is this to live in or a rental ? If rental we do not know what the rent will be, so we cannot answer this question.

BTW if you do not know then you should not be buying :) PLEASE show it to someone with experience, Learn then apply what you learn

All the best

Eliott Elias · Answer

Your max offer according to the 70% rule is $421k. Be weary of comps in this market, I am using 2020 data and under contracts.

Dan Kennerson · Answer

Who estimated the rehab? what does it include?

More than doing fixtures, floors, paint, etc, and you start tearing into walls, you're likely to find things you weren't aware of.

ARV of $700k, means if you sell it you're getting ~$650K, with 75K of rehab comes down to $575K, sounds like a lot of money and work for the ROI.

Jonathan Cisneros · Answer

I’m gonna request you on instagram.

Garrett Crosby · Answer

Hi Kenneth,

I'm local to this area. You have some pretty good numbers. Frankly, I would want to see it in person before saying for sure - but this is really good on paper. Happy to help any way I can since we live so close together. :) Feel free tor each out if you need support!

Cheers!

Garrett

Jonathan Cisneros · Answer

Would you say this is a BRRRR deal?? I’m learning.  Please be patient if I’m asking dumb questions.

Jonathan Cisneros · Answer

I’m more of hands type of guy. I learn as I go. I’m regards to this deal, this is why I’m asking here. Average rents in this specific area for this type of property goes around $2,200-$4,000. From what I’m looking at on Zillow comps. The second unit which is a 1/1. Sits on top of a Garage that can be converted. I just confirmed that. R3 zoning. I also just checked, sq footage can also be added to existing front 2/1 unit.

Should I buy this deal

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