Pasadena Spanish Style Home

[Martin Ruiz]

Investment Info:

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

Purchase price: $520,000
Cash invested: $200,000
Sale price: $1,149,999

The property is in the historic district of Pasadena its a Spanish style home with lots of charm and it has a really good size lot. This was a complete gut inside and out. we added over 700 square feet of living space plus we added a unit to the garage and turned this one into a duplex. we had blue prints drawn up with architect and a civil engineer to make sure it flowed well. We worked with the city to get approvals for this project and to make sure it was done to code.

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

I wanted to learn how to buy BERRR properties and I wanted to practice on one so I know what to do when I buy more like this one most of all I wanted to see if I could handle a project of this size with how much work was needed for it to get done.

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

I found this deal through Foreclosure Radar this was owned by an investor who could not get it done and was losing it because the lender was ready to foreclose and take the property and in the 11th hour I bought it like a couple of days before it would have been taken from the owner.

How did you finance this deal?

I got it financed from a private lender and the terms were not great I am Learning that Hard money is not the way to go for deals

How did you add value to the deal?

The deals was a 3 bedroom 2 bath home we added a master bedroom and a master bathroom to the main house plus we extended to house from the backyard to add 200 additional square feet. We also added a one bedroom and bathroom apartment to the garage thats where we were able to add more value by turning this into a duplex

What was the outcome?

The outcome is we are going to sell it instead of holding it to build our capital up its scheduled to go on the market in December 2019 we are looking to net a good profit and build up the companies funds to not have use private lenders on all deals

Lessons learned? Challenges?

I learned that its best to have a GC on projects of this size and also how to work better with the cities. I also learned that the not all lenders are good for deals and its better to get investors on a deal and split it or offer a good return