All Forum Posts by: Michael Choi

Have you guys read this blog post today? https://www.biggerpockets.com/renewsblog/2016-inve...

Hello, I'm newbie investor in Los Angeles and house hacking a duplex in East Los Angeles.  I was lucky enough to buy a Property C at the right time where it began gentrify to Property B with crazy appreciation over the years since purchasing.  It was a fixer unit and I intentionally placed my rental higher than my neighbors to attract A to B tenants and it worked out beautifully. 

@Suvir Salins Trust me on this Class C is way more of a hassle than A class.  I used to work as a rent collector and handling complaints for a guy who owned bunch of multi units from Class A to C in Los Angeles to Santa Monica.  In my experience, Class C owners complained over little things all the time even breaking things on purpose to delay paying rent under the protection of 'Rent Control' in Los Angeles.  I rarely had to go after Class A/B for rents mostly were just simple repair request or problem getting along with other neighbors so I don't know what Morris is talking about.  Class C can be a nightmare to deal with and I can't even imagine how you are going to comprehend this from Australia lol.  I understand the attraction is a turn key operations, but have you considered a backup plan when they bail out on you or bad things happens over and over finding yourself needing to find a new property management?  

Having said that, I do like listening to Morris podcast with a grain of salt, first I love his voice, haha and he has really good episodes as well.  But what I hate about his podcast is the way he markets his business like its relatively risk free and simple and easy "Just rehab really nicely and find 'hardworking honest' tenants" sounds way easier than done, all landlords want that ; ).  In my experience there's no such thing as a risk free investment so you have to consider all the variables when things just don't work out.  I personally consider "Turn key" business a high risk investment in any type of properties.  Morris is just buying cheap and selling high without taking any risk.  This is a great business for him for sure but I'm not so sure for investors.  

Hope you find a good investment opportunity.

@Nabil Suleiman Thank you!

I did look at one but it's all one bedroom/one bath right? I'm looking for up to 4 units and minimum 2 bedrooms for my family.

@Nabil Suleiman Thanks!  If you find anything in SoPa let me know.

@Fay Chen Over the weekend I talked to my neighbor who is a contractor and 'buy and hold investor' who owns over 10 multi units in Los Angeles and few out of states as well.  I would say he is quite savvy investor and according to him, he guarantees that El Sereno is going to be the next HP.  All the things you mentioned about ES he pretty much said the same thing plus due to rising cost of HP people are boiling over to ES.  He thinks ES will gentrify sooner than Boyle Heights and just bought a triplex all cash.  I think you made a great move!

As for retail scene in ES, HP was kinda like that three years ago especially on Fig.  Now it's totally gentrified and shocked how fast investors and entrepreneurs moved in, crazy.

Now I'm trying to convince my neighbor to be my mentor lol.

@Nabil Suleiman I'm still playing around with the idea of selling but not 100% sure.  I plan to either refinance and use the money to purchase another multi or use 1031 to purchase 4-plex in South Pasadena or other location where the numbers makes sense.  But if there's any chance I decide to sell I'll let you know : ). 

@Fay Chen Awesome and congratulation!  SP's armpit lol.  I've been looking at El Sereno as well, do you think it's the next HP?

I've been back from Japan and living in one of the units with my family.  My second unit came vacant and I got very lucky renting it out to a nice couple who not only take cares of the house like they own it, the husband does gardening for hobby and turned my backyard like a front cover of House and Garden Magazine :D (it was all dirt before).  We are now good friends almost feels like part of the family which is another reason making it difficult for me to consider selling, lol.  One time he told me that the only way he will move out is when he is in the body bag xD.

Do you go to any REI meetups you can recommend?

@Nabil Suleiman my house is located on North of York and my cross street is Fig.

Hello @Fay Chen, I know this is 9 month old but any updates what you ended up doing?

I've been looking into South Pasadena market for multi income and use the 1031 exchange with my current duplex in Highland Park.  Although I come to LOVE my first duplex and rehabbed it over the years the market appreciation has been crazy here.  Honestly, I'm torn between 1031 vs hold it and use the home equity to buy another income property at a different location maybe out of state as well.  But I love South Pasadena it's truly like a getaway neighborhood.

Years ago, I had to move to Japan for work and made short landscape movie of Pasadena in case I get home sick lol.  Here's a link to that video if you wanna check it out: https://vimeo.com/770940

@Manolo D. "actual place where 'slums' will be"; interesting use of word here...

@Josh L.  there are ethnic based craigslist like Missyusa.com, I'm 1st generation Korean American.

@Jack Butala Thank you for the warm welcoming message.