fix and hold duplex (with adu) in San Pedro, CA

[Tammy Skeath]

Investment Info:

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

Purchase price: $750,000
Cash invested: $175,000

Purchased with a mix of cash and heloc funds a fixer spanish revival duplex in a suburb of Los Angeles, San Pedro. Invested an additional $175,000. Will rent it out, refinance it and then convert garage into ADU and hold for a couple of years.

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

I wanted to buy a cash deal because I had cash from a blown up 1031 to spend before the end of the year. This house had a ton of potential and charm. It had sat abandoned for several years and needed a ton of work.

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

It was on the MLS for months. My agent helped me negotiate it. I stuck to my number and eventually the seller came down to meet me.

How did you finance this deal?

cash and some heloc funds.

How did you add value to the deal?

New roof, new electric, new plumbing, new gas lines, full interior remodel.

What was the outcome?

renting out the two units and working on converting the garage to an ADU.

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

Buckingham Investments

[Jake Andronico]

Looks gorgeous!! Way to stick to your guns on your purchase price and keep emotions out of it. 

Huge skill to have.