East Los Angeles 4 Unit

[Matt Nuttall]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in East Los Angeles.

Purchase price: $475,000
Cash invested: $70,000

4 Unit acquired with business partner Chris via Hard money. Hired architect, engineer, and contractors for Major Remodel for 2 of 4 units. Challenging project to say the least. Learned a TON. BRRR

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

Incredibly low purchase price @ 475K. Huge Upside

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

Partner Chris brought deal to the table. Concrete Foundation concern scared away majority of buyers. Had licensed contractor perform foundation inspection right away to get professional opinion. Presented all cash offer via hard money loan within 48 hours of viewing property.

How did you finance this deal?

Hard Money.

How did you add value to the deal?

Redesigned 2 of 4 units. Added total of 3 bedrooms and 1 bathroom. Performed major remodel. All NEW stucco exterior, windows, roofing, concrete, foundation, wood floors, plumbing, electrical, deck, etc.

What was the outcome?

Refinanced after 7 months out of hard money loan onto 30 year fixed. Each of us pulled out 1/2 of our initial investment. Property management In the process of renting out 2 vacant units.

Lessons learned? Challenges?

Know tenant laws and rights in CA before you acquire a nightmare tenant that is aware of the liberal loop holes. If going through eviction process, hire an EXCELLENT attorney. Pay the extra money for GREAT legal representation that knows RE law in CA.

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

Eric Weidner Civiv Financial - Hard Money
Josh Glaz -- Conventional loan