All Forum Posts by: Alex J.

South LA westmont and compton watts still relatively reasonable for a return but of course you are dealing with a very different market. Hawthorne has some interesting pockets too

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out of curiosity where is the location of this flip? seems like a decent margin could be had.

Originally posted by @Andrew Taylor:

We're working on one now that's got about 2,000sf of first-floor area. It was gutted to the studs when we bought it, so no demo/cleanup costs to speak of. Our budget is $125k and we will spend every bit of that and then some.

This is on top of the $50k the seller had to spend doing mold remediation prior to closing because he didn't leave the HVAC running when he moved out after Harvey.

I would advise against making a flood house your first flip, but if you're going to do it, have a mold inspection done BEFORE you agree to purchase. Get your mechanical trades over there to tell you what's going to be required (lots of times you have to upgrade what's there, not just replace what got wet).

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Why do you think Katy and SL are bleh? Have you been to either? It's a big population with tons of growth and with a plenty of things to do. Sugarland has the smart financial center, minor league baseball and one of the most diverse areas in the city and agruably the country. Not to mention it's 15-20miles to downtown Houston. Hell there's even hipster coffee places

Originally posted by @Cody L.:

Originally posted by @Keinon Sam:

Never did any investing yet what should I start off with

Gotta be a bit more specific. A few different area types depending on your risk profile and desired return

A area: think montrose. My fav area of Houston. This is where our HQ is and about 1/2 our units

C areas: SE inner loop. 5th Ward. Etc. might be other C areas outside the loop but not even I will do bad areas that are also in BFE

PoP area: path of progress. Think 3rd ward. Other areas that’s are “bad” but “oh so close” to the good stuff. This represents about half what I have for a data point

BFE: Katy (bleh) sugarland (bleh) other boring burbs. Good options if you want a handful of SFH. But most MF will be $100k/door B product and 4 CAP (maybe low 5)

So if I were to pick one spot for MF I’d say midtown or montrose if you can find a deal, 3rd ward or EaDo if you can’t

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YES reassessment risk is what i am most concerned about! so even if i put it in an llc which will act as a pass-thru entity there will still be a risk of reassessment? man that is brutal. I guess buying more coverage on an umbrella is the only viable solution

Originally posted by @KJ L.:

We own a duplex in Los Angeles with FHA financing under personal name and considered moving the property to an LLC but we were advised that a change in title and/or adding new construction will cause reassessment of property value for property tax UNLESS the property is moved to a trust. Based on prop 13, you can move properties in to trust without causing reassessment (consult with lawyer for the type of trust that is allowable to avoid tax increases under prop 13 rules). Also, if you have a residential mortgage on your property, you cannot safely move it into an LLC (could trigger due-on-sale clause) but you can move it into a trust without triggering that clause or negatively affecting your interest rates. Properties held in trusts can have residential mortgages while properties in LLCs can only get commercial loans.

If you need a name of a lawyer to establish trust or other RE holding entities, PM me.

Hope this helps

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@Jim Cummings yes you are correct its assessed every year in Texas based on market value. But Los Angeles is based on your purchase price.

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hey all. I need the wisdom of this ever so intelligent website to answer some questions for me. My real estate agent, lawyer, and estate planner do not have a good enough response for this so I was thinking of reaching out to the forums because I am sure I cant be the only person who has experience with this

I have a handful of properties in Los Angeles, South Los Angeles, as well as Houston Texas / Missouri City Texas that are all currently under my/mywifes name under title

We are working on transferring these assets into an LLC for a few reasons, mainly to reduce liability and also restructure our ownership plan to hopefully scale up easier. I have a lot of equity built up in the properties - especially the Los Angeles deals, and I do not want to trigger a "reappraisal" so that my tax burden does not go up. I have setup LLCs just as a passthru entity for us however I dont know what will constitute a revaluation of price in Los Angeles. Texas I am less concerned about because its already market priced tax rates.

Anybody ever have experience in this? any guidance? yees yes yes I know i know you guys are not my lawyer doctor wife brother mother dad and nobody is holding you to anything , im just speaking generally! Legal disclaimers and what not.

Thank you in advance!

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where can i find deals like this!??

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this is very much a class d or c- area.

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All Forum Posts by: Alex J.

Alex J. has started 17 posts and replied 307 times.

Post: Investment Properties in Houston Texas

Post: First out of state flip

Post: Untapped areas in Los Angeles?

Post: Rehab cost on a flooded home

Post: Best place for investing in Houston Texas ?

Post: Will transferring title triggering a city tax reappraisal?

Post: Will transferring title triggering a city tax reappraisal?

Post: Will transferring title triggering a city tax reappraisal?

Post: Buy and hold multifamily apartment

Post: Suggestions on good areas in Houston for cashflow