All Forum Posts by: Julian L.

I've found a off-market property in my old college town that I'm thinking about getting into. It's a off-market deal that I found through an old property manager that I used to work with several years ago. The property is in the midwest and I'm in California, however I have a property manager I know and trust lined up and ready to go for 10% of the monthly gross income. 

The Numbers:

Purchase agreement is for $95,000 and needs between $10k - $20k worth of work. I've seen similar homes in the area for $120,000 - $130,000. 

It's currently rented for $1,100/month. 

Based on the past 24 months of operating reporting that I have, it looks like the average expenses is $452/month (including the property management fee). If I borrowed $76k and put 20% down at 4.5%, my monthly payment would be around $450/month, plus taxes and insurance. I'm only looking at a monthly cashflow of $150 - $200/month. 

The overall goal is to buy and hold this property for years. Is this a good deal? 

I'm in!

Thanks for the replies all. The meetup is literally a half a mile from my condo, so I have no excuse not to go. 

Let's all chat then. I'm dressing casual, it's Saturday. 

Jim, what are the 3 zip codes in the IE you would recommend to buy and hold? I'm looking for desirable areas, near restaurants, bars, etc... 

Heres my situation: 

I'm house hacking my condo in Santa Monica, owe $346k and its worth about $460k. 

I have about $50k in cash outside of retirement to use toward another property. The ultimate goal is to create some passive income. The problem I'm having is LA is so incredibly expensive, $50K won't do much out here. 

I've thought about:

a) Continuing to save another $50k and use $100k total as a 20% downpayment toward a $500k property in the next 2 years

b) Buying a rental long distance in my college town back in the midwest

c) Trying to pick the next "hot neighborhood" in LA, buying a house here in LA that barely cashflows and pray it goes up in value. (Sounds dumb as I'm typing it out)

d) Another option

Thoughts?

Hello BP team - 

I've been following and listening to BP for about 10 months. Since, I've successfully gotten out of the rental game, and purchased a beat up condo in Santa Monica, and rehabbed it. I'm now house hacking with a roommate and have about $100k in equity in this project. So far, so good.

What should be my next step? I've got about $50k in the bank I could use for another deal.  Where in LA is the best place to buy? Ideally, I'd like to buy a beater, rehab, and the keep it and rent it out. Not sure where to look. I think I'd like to go a bit east of downtown, but I'm not sure what areas are growing the fastest and if this would be a good strategy over there. 

Any ideas?

We are adding  2 more lights, that wasn't included in the original proposal. Everything else is done. I'm very happy with my choice in contractors. 

I'll include final photos and numbers for you all at some point tomorrow. 

Update, counters are in. White Quartz was $1200 and included installation. 

 Yes, I got my cabinets from the RTA store and they look great. This was the only thing that I really underestimated and it put me over budget a bit. I'll know to budget more for cabinets next time.

I got the appliances from Best Buy. They will match if you find a price lower  than theirs. I found them to be the lowest on all except my oven. I was able to find my exact same oven for $70 lower and they were able to match and gave me a refund.  

An update on how it's coming together:

 Project started May 23rd and it should be finished by June 15... 3 weeks