All Forum Posts by: Brian Allen

Hi everyone, I am in need of your expertise. I have a current SFR in Los Angeles worth about $1.5m as it sits, no debt. I have approved permits for construction of a new SFR and quotes from contractors are between $900k-$1m. ARV is around $3.5m. I am looking for the best way to finance the construction, plan is to have it be main residence but that could change. Thanks everyone.

1 Vote

Los Angeles County, California

Quote from @Chris Smith:

Hey Brian ,

Are you planning on moving into this property ? From an ROI perspective, you could actually sell the land with the building approvals to a builder and you should certainly be able to receive a multiple on your initial investment . I haven't taken on any new construction projects , however when I have land deals with approvals that is how I typically structure them . I hope this adds value !!!

Hey Chris,

Yes the plan is to move in mostly because of the property tax exception. Thanks yes all info is helpful!

0 Votes

Hey Everyone,

I have a lot in Los Angeles that is owned free and clear as well as full architectural documents and permits to knock down the existing house and rebuild a new single-family home. Im looking at several ways to finance the the construction piece, has anyone had experience with a single close construction loans? My understanding is its interest only through the construction phase and will "convert" to a 30 year fixed once construction is complete. All recommendations or alternatives would be greatly appreciated.

0 Votes

I think the accuracy is there as long as you are comparing similar individual properties on Airdna in a close proximity to your target property. The average vacancy and ADR for an large area introduces too much noise and outliers to be considered reliable in my opinion.

0 Votes

Originally posted by @Aston L.:

Melissa, I just sent you a PM about your PM.... We just purchased a 3br/2ba house and are in the process of renovating it. The current PM says they were grossing $65-$75k, and that most 3br homes gross $40k-45k, but I suspect we can do much better than that.

PM said that typical 3br in Palm Springs do only $40-$45k? I guess that depends on their condition and marketing but should be double that.

0 Votes

Curious as well as Im also looking for a general contractor for a light remodel in IE.

0 Votes

Riverside, California

Hi all,

Looking to do a light house remodel before renting to a new tenant, need a good rec for a contractor in Inland Empire or willing to work in that general area.

Thanks

0 Votes

Thanks @Melvin List I will reach out.

0 Votes

Looking for a place in Palm Springs currently and realistically will probably end up in a jumbo. I'd love to use the vacation home path just put down 10% but not sure if any lenders offer this? I have plenty of reserves and a 750+ credit score. Thanks

0 Votes

Originally posted by @Chris Davidson:

@Brian Allen This is a tough question in that it really depends on the market and what other rentals are providing and the market is demanding. If like most of the country and a tight rental market the update may just need to be minimal; however if a lot of similar units are available the more intense the upgrade the quicker the unit may be rented and at a higher price.

I'd start looking at other ads for rentals and get an idea of what is normal and gauge your remodel accordingly.

Hope this helps out!

Very helpful! thanks Chris!

1 Vote

All Forum Posts by: Brian Allen

Brian Allen has started 6 posts and replied 13 times.

Post: Loan Advice for SFR Construction

Post: Single Close Construction Loans

Post: Single Close Construction Loans

Post: AirDNA Accuracy Question

Post: Palm Springs short term rentals

Post: General Contractor in the Inland Empire

Post: Inland Empire Contractor Recs

Post: 10% Vacation Home Jumbo Loan?

Post: 10% Vacation Home Jumbo Loan?

Post: Rent increase from kitchen remodel