All Forum Posts by: George Torres

@George Torres

In NYC, coops are generally less than condos and SFRs, for a number of reasons, some of which @Matt R.pointed to. LA might be different, though. I suggest taking another look at the comps or maybe enlist a broker for a professional opinion.

Some things to consider for yourself and for your end buyer:

1. Is the coop in a good financial position? No one wants to buy into a dud.

2. How much is the monthly maintenance fee?

3. What are the requirements of the board? One might be able to get a loan with 20% down, but a lot of coops require 25-35% down.

4. Is the board easy, ok or difficult? 

5. What are the board's reserve requirements? Some boards might require 1-2 years of maintenance + mortgage, etc. after closing.

6. Flip tax?

7. Upcoming assessments?

Coops are somewhat of a different animal. Do some more research, particularly on that coop you are interested in. Some buildings have certain reputations, good or bad.

Best of luck!

hey I'm new on this site, not sure how to pm. 

Does this link work?

http://m.trulia.com/for_sale/Inglewood,CA/SINGLE-F...

I see at least two SFH in inglewood for under 300k

For $200k I would say look into a Inglewood condo...a few are still in your price range and there's room for appreciation....is your budget self imposed or what a lender gave you...if a lender told you that your qualified for $200k a condos HOA will lower the amount your qualified for....if the budget is self imposed I would try to acquire a duplex that makes more sense.

Go East, young man! If you want to buy and hold, and you aren't finding satisfactory properties in your price range that will produce sufficient cash flow, go East and perhaps a bit North too. Go distressed, young man! Get something that needs work and get a discount accordingly, then roll your sleaves up and put in some sweat equity. Not everything needs to be repaired day 1 ... you fix up as time and money allow. I personally would apply both these methods on a non-HOA property over a condo.

If you do decide to go the condo route, though, then I'd say consider it more of a live in flip than a long-term buy and hold. I think it would work better as an active forced appreciation play shorter term than a passive cash flow play longer term. Roll your sleaves up and put in some sweat equity ... live there for a year or two. Rent rooms while you live there if you like and can once you fix up a bit. If you live there for a year, cap gains taxes go from short term (at your tax bracket) down to long term (15% I believe, but check with a CPA). Live there 2 years or more and the first $250k of capital gains are tax free ... Either way, you roll the profits into your next place. Make sure you can afford to hold indefinitely as a primary, in case the market is not conducive to selling after a year or two.

Any way you slice it, sacrifices will be required ... just a question of which sacrifices. I hope this helps give you some more options ... good luck!

I think he used SF to mean single family.

I also moved out of the rat race to Detroit glad I did it has been incredible. 

In 1995 I moved from Brentwood to the Detroit area.  I spent more on rent in a 1 BR apartment in Brentwood than I did on my mortgage on a 2000 sq ft house, with basement, in Michigan.  LA real estate can be pricey and goes up and down like crazy.  I consider it very risky.  I own rental property in several states and would suggest a different approach.   Instead of going for a $300K condo, why not invest out-of-state in a much-cheaper SF rental?   You can get good cash flow, much less risk, and help pay your rent in LA.  Alternatively, move out of LA.  You might be pleasantly surprised at how your lifestyle improves.