BRRRR in Los Angeles I am holding onto this property

[Daniel Rivera]

Investment Info:

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

Purchase price: $525,000
Cash invested: $100,000

Bought the property from a flip. I added value by renovating the the back unit, and converting my garage into a studio for extra cash flow. Now, I've refinanced the house and have some money ready for a BRRRR project.

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

I believe in generational wealth. I want to own multiple income properties, so my family can focus on what they love rather than making money.

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

I found it on the MLS. This neighborhood was at the beginning of becoming a safe and prosperous place to live. I noticed a a few houses being flipped, and the amenities of being near DTLA, USC, Playa Vista.

How did you finance this deal?

FHA Loan and credit card for materials

How did you add value to the deal?

I completely renovated the 2nd unit and got new tenants with new market rent, added security fence around, and converted my garage into a studio.

What was the outcome?

I was able to refinance my home. The house came back at a value of $820,000 compared to $525,000. I took out some money to clear out my debt and hold some money for when a next opportunity arises, I am ready. Now I have great tenants that always pay on the 1st of the month even thought out the pandemic, because I screened them aggressively.

Lessons learned? Challenges?

That adding money into your home is a great investment, screening for good tenants is very important.

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

Yes, myself Daniel Rivera from Keller Williams Beverly Hills