All Forum Posts by: Ian Dunross

@Seth Borman Unreal. I can hardly believe it myself.

@Ali Boone Every week I run numbers trying to avoid the inevitability of buying more properties out of state. I really want something local but it doesn't come close to making sense! 

The idea of investing in my area of the SFV seems attractive for a number of reasons. Since I live in the area, I can check on properties in person on a moments notice, house hack if needed, be eligible for "primary residence" financing etc..

Even though the cap rates and cash flow in SoCal are lacking to say the least, I decided to check out some open houses. This is not a fable, parable or embellished in any way whatsoever. 

Open House #1 - SFH listed in the 800s. Realtor says it was a rehab/flip which was done in haste while cutting corners. I could hardly believe my ears. This was from the realtor that was in charge of SELLING THE HOME. In showing me the shoddy workmanship he began to peel paint from a door as he pointed out the defects throughout the home. He offered to represent me as a buyer in addition to broker a loan for me.

Open House #2 - Vacant/rehabbed SFH with an attached ADU. I'm walking up the driveway and see the realtor exit the house with the phone to his ear and a worried expression on his face. He paused just long enough to say "Sir are you here for the open house? Please don't enter the property".

I looked through the front door though the living room and onto the patio. There was a collection of personal belongings in on the back patio which included a car key, library card and syringes. The realtor said those items weren't there the day before so someone must have broken into the patio for some R&R during the night (photo attached).

Open House #3 - Duplex in the 700s with a detached garage (possible ADU) and a decent sized back yard. Both units were livable but needed a lot of cosmetic upgrades. In addition to the duplex there was an un-permitted 3rd unit in the front yard (photo attached).

I don't think I'll be attending any more open houses.

I wanted to make an ADU thread specific to the San Fernando Valley. These ADU rules/regulations can vary wildly from LA proper to the SFV.

Here are some topics I'm interested in : 

1) Are two unit unit ADUs allowed? I've seen some two story ADUs in LA proper although I haven't seen any info whatsoever on 2+ unit ADUS.

2) Does the LADWP powerline buffer zone include only the big wooden pole powerlines or do they also include the power wires that can protrude from the lines and into a SFH, for instance if there's an alley between the powerline and the SFH there will often been an auxiliary wire coming out of the powerline over and across the alley and into the SFH.

3) Would anyone be interested in an ADU meet up in the Valley? I was thinking of getting some architecture firms, GCs etc.. to attend and give talks/presentations etc..

 Spaghetti sticks when properly cooked. 

AirBNB is a bad idea...however the photo shoot angle has more legs than I originally thought. People in LA (not me) are paying to use private jets for photo shoots. They pay to pose in front of, inside a jet. This is the age we live in.

I own a few duplexes and I'm about to close on a 12 unit building on the east coast...20% down with an owner carry-back. I'll be getting good cash flow...but it doesn't have any panache, any pizzaz etc...

You're absolutely right about the investors...I'm probably gonna work harder at my music business this year to earn the down payment myself. That way I'm not accountable to anyone!!

  There's a few reasons why I keep an eye on it. There's great value, there's already some big money redevelopment happening, there's plenty of parking etc..

I live in Van Nuys so I'm 10 minutes away from Panorama City, instead of having to drive out to Palmdale, Riverside etc.. to look at properties..

I'm planning to hit up a few open houses next weekend to check out the inventory...

Hey Ian (nice name!)

I've been thinking about Panorama City lately. Its right off the 405. Just a few exits from Ventura Blvd.

The "instagram photoshoot" angle would definitely be lucrative. Sure there's many free locations...but every tom dick and harry uses those locations. People are willing to pay for a location thats private and provides an air of exclusivity. A nice shot overlooking the city from a pool in the hills would be worth a few hundred bucks a day...the subjects would bring several outfit changes, take a bunch of pics in each outfit, then post the pictures throughout the year. They'd even bring winter clothes to post pictures NEXT winter. 

I wouldn't be surprised if they brought birthday balloons and a cake. "Celebrating my birthday in the hills! #blessed" 

Thanks everyone for this great info! The ABB angle seems like too much work for too little return. 

Hey Hector nice to meet you! I know what you're saying...but the thought of paying $1,000,000+ for a four-plex next door to an Auto Zone doesn't get my investment juices flowing. I always try to run numbers for something like this but I always get disinterested :/

  I know a couple of people through the entertainment business that can throw a lil cash into a syndicate. I'd rather have a small number of people throwing bigger amounts of money so there's less people to deal with..

I'm planning to only syndicate a down payment and get a jumbo or commercial mortgage to cover the rest. I think the biggest headache will be finding a loan, even with a 25% down payment!

@Jeff C.  I was thinking we could do it room by room (making the room off limits to Air BNB guests) and work each day that the place isn't rented. Naturally this would extend and complicate the rehab process. If we had to rehab the common areas and pool area we'd have to limit the rentals to night time video shoots, photo shoots etc.. after the construction crew left for the day..