All Forum Posts by: Account Closed

Hey Bp, I've spend most my time on here learning up on multi family/buy and hold investing but I have a strong interest in flipping and developing (I on my way to being a contractor/builder) so naturally I'm always on the lookout as I drive,for potential areas to eventually invest. I just noticed a property that was in terrible condition with a for sale sign so I looked it up and found it was selling for $895000! Trying to find comps and the house next door sold 3months ago for $870000 and that's fully rehabbed. So what's the deal here in la? Do the rules of flipping not apply? Or is there a difference when buying for developing (my assumption is that a developer purchased it) Some insight would be appreciated Thanks

Hey Bp, I've spend most my time on here learning up on multi family/buy and hold investing but I have a strong interest in flipping and developing (I on my way to being a contractor/builder) so naturally I'm always on the lookout as I drive,for potential areas to eventually invest. I just noticed a property that was in terrible condition with a for sale sign so I looked it up and found it was selling for $895000! Trying to find comps and the house next door sold 3months ago for $870000 and that's fully rehabbed. So what's the deal here in la? Do the rules of flipping not apply? Or is there a difference when buying for developing (my assumption is that a developer purchased it) Some insight would be appreciated Thanks

@devan mcclish 

Thanks, i feel like I'm starting to get my head around the financing.Meant to write fund, but cool to see wholesalers coming through!

Melissa Sturges your unit price is $48000 and rents are $620 so your below 2% but this sounds like a better area so that could be the norm. Also are you using a fha type loan? that low entry cost means a higher monthly payment, is the a way out through a refinance of some sort?

Devan Mcclish how did you find the deal? Was it a cash purchase that's allowing you to refinance as a posse to buying at 80% and refinancing based on appraised value?

Corey Hajduk Stephan Haas I'm also a bit new to the multi family investing game. Love these analysis posts. What I'm wondering is, I don't remember seeing the down payment considered along with expenses.wouldn't that be done in a cash on cash view of the property in which case at 700$ a unit you'd be 33,600$ income less $20,000 expenses = $13,000 cash return and a CoC return of over .30 am (am I missing something deal seems okay to me)

@John huber cool! That's right near me. Definitely not a 2% area.maybe you can help me understand this, I know a lot of developing is going on which is driving the outrages prices but as for buy and hold is the goal appreciation?

@John huber where in California did you purchase? What kind of cash flow? And congrats!

hey BP, I've been thinking about a no money (of my own) down strategy and wondering if it could work, and that would be borrowing/raising the 20% down to get a mortgage. like one might do on a large building/complex. I don't have a specific deal but a family friend recently purchased three units in Milwaukee at $80,000 renting two for $1,500. My goal is to join them in that same market,theoretically speaking if can achieve the same numbers (if not better) would funding the 20% with private money be an option. I Know The terms/specifics of the private $ would be a key factor. But has anyone one something like this?

Thanks :)

@Tom V. Congrats! that was an awesome read. I'm currently seeing new development projects all around me Here in LA. its incredible some blocks have more than one going up at once and things seem to be getting busier. when you bought at 500K did you have an idea of your ARV like a flipper would?