My buyers put $400k of equity into duplex along LA river

[Andrew Tyree]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $910,000
Cash invested: $180,000

Represented clients purchasing a two-on-a-lot duplex in Frogtown, a gentrifying area of Los Angeles. They house hack and live in one, tenants pay $2,800/month and the duplex is now fixed up and worth $1.3 MM.

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

I love representing buyers looking for good investments that they can live in to build equity and wealth.

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

It fell out of escrow for $1.1MM and we got it under contract for $910,000, rehabbed it and it's now worth $1.3 MM.

How did you finance this deal?

Clients did traditional 20% down.

How did you add value to the deal?

We bought below market value in the middle of the super hot market of August 2022, we rehabbed the whole place and they kept the existing tenants who are paying $2,500/month. It's now worth $400,000 more than they bought it for.

What was the outcome?

Home value went up $400k and they live in the back house for about $2,000/month after the tenants pay rent.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Worked with amazing contractors and lenders I know as an agent.