All Forum Posts by: Gonzalo Sagahon

@Mary Mitchell I will definitely look into joining or attending a group that actually sounds like fun. I dont know if the tenants low rent should be a big factor when looking into buying a property. I know there are investors who just look at the potential. It just seemed very difficult to bring rents up to value. Thanks for those tips much appreciated.

@Richard Sherman that actually sounds easier than how I pictured in my head in sure there are some bumps along the way to getting rent up to market value. Where can I search for these guidelines or laws on rent. I greatly appreciate your feed back and time. Thank you

@Adrian Chu Yes you are right. The back unit shares utilities with an attached ADU therefore I included the bills. I tried to be careful of who I rent it out to. So far both tenants are never home. But I probably should have included in the contract that if they exceed the “average” utility consumption I oils charge then a fee. I will definitely look into it.

What are some techniques you guys use to raise rent to market value when buying an investment property with tenants using BURRR method.

@Adrian Chu i rent a 2 bedroom 1 bath with about 800sqf for 2170 Bills included. We did look into other comps around the same price some even being 2300. The property was turnkey. So the unit was remodeled including fully renovated kitchen. We decided to add a new stove and a refrigerator and installed a new microwave that hangs on top of the stove. We saw 1 bedrooms hitting the 1400-1600 $ mark. With no bills included. LA is expensive. My property is actually in the city of Compton

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Compton.

Purchase price: $590,000
Cash invested: $35,000

Front unit is a 2 bed 1 bath
Back unit is 2 bed 1 bath

What made you interested in investing in this type of deal?

Financial freedom

How did you find this deal and how did you negotiate it?

Redfin
Realtor

How did you finance this deal?

Savings and some was borrowed from a friend