All Forum Posts by: Jorge Ramsés García

Hi Jorge. What were terms of the deal you picked up? 

@Jorge Ramsés García

Im speaking purely for investing in LA

1.If brand new to RE, some options would be to find other active investors, and either provide capital or JV with them. (aka there are always developers looking for Capital)

2. Take on projects yourself if you feel you have the understanding or the confidence. If you can utilize todays market demand and are comfortable with that risk, it can be very advantageous. 

3. Find a multi unit in need of work and higher rent in an area you want to invest in, vacate and rehab what you can, and increase your cap significantly. 

4. ADU's are a popular source of cash flow if you have the upfront money to afford doing them.

Those are my thoughts. I can't comment out of state but I know a lot of people find great success with cash flow. 

With $350K and a desire for cashflow, I would buy as large a building as I could in South LA and have Action Management do the property management. I'd wait until we're closer to the eviction moratorium ending, though.

 Thank you for your comment, I will definitely take it into account. Would you then recommend a small multifimal unit of 2 to 4 units? And what areas would be the most suitable from your experience? Thank you

Cash flow is hard to LA..prices are too high to generate much cash flow. You could get 2 nice SFH in nice neighborhoods. SFH in nice neighborhoods with good school districts can easily go for over 3k/month rent. A 2-4 unit multi would be your best bet. I would still try a nice neighborhood though even though your paying a premium but you will get better tenants and better appreciation along the way. Appreciation is the game in places like LA or bay area. My monrovia duplex i bought for 665k in 2010 is now worth close to 1.2 milion so close to doubled. The rents were good and covered the expenses but not everywhere in the country will see a 2x increase in 10 year.