Quad Development project in South Pasadena CA

[Richard Mercado]

Investment Info:

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

Purchase price: $1,560,000

Current development project adding two 2BR /2BA ADUs to an exiting Duplex in South Pasadena, CA. Will also add two bedrooms to the existing Duplex making them 2/1 on each side.

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

Opportunity to have 4 cash flowing units in the highly sought after area of South Pasadena. Great schools and conveneitn location close to Metro Line, and nearby hospital.

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

Found it on the MLS. Realtor negotiated.

How did you finance this deal?

Conventional financing 20% down.

How did you add value to the deal?

In process adding two 2BR /2BA ADUs to the exiting Duplex two additional bedrooms to the existing Duplex.

What was the outcome?

I'll be able to answer that better in 6 months when the project is complete.

Lessons learned? Challenges?

Getting approval from the City has been very challenging due to the historical considerations.

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

I highly recommend my Realtor Brad Gilboe at BWG and my lender Elijah Aldinger at Cross Country Mortgage.