All Forum Posts by: Francis A.

@Eric Zunkley 

Would it be possible to save yourself the hassle and have the building delivered with 2 units vacant by seller?

@Dan Bee 

I am told that the potential problem with unpermitted structures like the one you're talking about is that they tap into the existing sewer system as opposed to having an expanded sewer system to accommodate the extra high use (so to speak).

If you're flying solo you're going to NEED to do research or you will be doing yourself a disservice. Any unpermitted structure will almost always not be factored into the appraisal. 

https://ladesigngroup.wordpress.com/2011/09/21/leg...

I strongly suggest visiting the building and safety office on Figueroa and ask some hard questions. It will give you peace of mind in the end unless you're a dare devil and want to take on this unpermitted structure and the potential income it could bring until….

1828 Sawtelle Boulevard
Los Angeles, CA
(213) 473-3231

@Jon Huber 

@Aziza Sackett 

Lovely! Good job my people. Sounds like a plan.

Reading this reinforces how smart some of the Real Estate investment strategies Biggerpockets members are deploying in markets not called NYC are! 

The riches are indeed in the niches. 

http://www.nytimes.com/2015/01/18/realestate/what-...

Here's an interesting read. Bigger pockets indeed!

http://www.nytimes.com/2015/01/18/business/home-th...

Long beach is not a bad place to cash flow if you have the right sleuth to guide you ( duplex, tri, 4 plex).  I've met the RE agents who run this RE Licensing program. They're Long Beach (and more) knowledge base is amazing. 

http://www.alwaysgonationwide.com/about/

You can also cash flow in Los Angeles (albeit in smaller %ages) if you're willing to look at these zip codes and especially so IF you owner occupy for 1 year and then move and rent out your now formerly occupied unit. And then you hit the "repeat" button. I am drinking my own prescribed "medicine" btw. :-)

90011, 90205, 90280, 90018, 90201 etc

http://www.zipmap.net/California/Los_Angeles_Count...

Keep in mind what's happening downtown is starting to spiral outwards. When I first moved to LA, downtown was a ghost town at night. Now I go downtown and revel at all the sights. Ah-mazing what's going on there.

And then good old University of SoCal has made the waves even higher and is due to complete this massive $650 million project by 2017. USC is adding at least 3k - 4k permanent jobs to the area meaning, folks are going to be looking for units to rent. The 2500 student housing units they are also adding as part of this mixed use project will not alleviate the need for housing in this 5 mile radius plus.

http://www.latimes.com/local/education/la-me-usc-v...

http://la.curbed.com/places/the-village-at-usc

Plant your flag within a 1 - 5 mile radius (preferably a triplex or 4 plex), force your rents up (paint, etc) and wait because by then you can "afford to".  It won't hurt to offer "partially furnished" units (fridge, microwave, stove and maybe a bed - there are a ton of places to find fairly nice furniture without breaking the bank). All that is worth it ($) after you screen heavily and get the right tenants in. 

Food for thought!

Appreciation and cash flow.

You can make an analogy of this and see this as an instrumentalist playing solos over the chords of your favorite song.

In western music, there are 12 notes. Thats it. But these notes form the structure and RULES of how music is assembled - chords and melodies. 

So after your create your basic song structure (the chords that make up the song), you can get Eddie Van Halen, Orianthi Panagaris or  Pat Metheny to play solos over this song that respects all the rules of constructing a song.  Most of the time (not always), respecting the rules of song construction (the foundation of the song) allows the song to sound good to our ears.

So say in Milwaukee, WI - the "music" will be weighted towards cash flow with barely any appreciation (for now). And then in Los Angeles, you get the appreciation and some cash flow if you either lucky or managed to construct your real estate deal that way.

But in the end, the basic principles of Real Estate (constructing a song) must be adhered to otherwise, whomever is playing solos over your basic song structure will sound bad no matter how good he is BECAUSE the basic song structure that DICTATES what solos he plays will sound meh!

Alright, analogy over. Back to cash-flow and appreciation for real! :-)

PS: With regards to flipping, I'm sure you've seen these but here goes. There's more where these come from! ;-)

http://www.biggerpockets.com/renewsblog/2015/01/15/bp-podcast-105minimum-wage-full-time-flipper-ophelia-nicholson/

http://www.biggerpockets.com/renewsblog/2014/11/13/podcast-096-anson-flipping-wholesaling/

http://www.biggerpockets.com/renewsblog/2014/05/01/bp-podcast-068-superhero-flipper-investor-mark-ferguson/

http://www.biggerpockets.com/renewsblog/category/p...

Hi and welcome!

Flipping isn't for everyone and it can be especially hard on folks with W2 jobs while "flipping on the side" so to speak. Ever think of owning a triplex or a 4 plex? Not a bad plan for "the very densely populated people always in need of apartments to rent"  city of Los Angeles. :-)

Either way, all the best and Gods speed in your future endeavors!

@Aziza Sackett

Looks like between what's going on and what you're planning this meet up idea will happen. Cool, make it happen!!!