All Forum Posts by: Janelle K. Eagle

Hi Rene! Thanks so much for your kind words. It really is SUCH a character piece!! The property is a duplex and the unit that is used as a rental is currently available on Airbnb and can be seen at this link: airbnb.com/h/thevictoriansinger

Hi @Jana Crum! It was a really helpful strategy! I work for eXp Realty which allows you to have up to three "personal" transactions each calendar year in which you can waive your commission in a purchase or a sale. In this case, I represented myself on the purchase so the seller did not have to pay a buyer's agent commission - a savings of $25-$30K for them! 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in San Luis Obispo.

Purchase price: $1,150,000
Cash invested: $300,000
Sale price: $1,628,000

Built in 1890, this Old Victorian was converted into a duplex in the 70's by a talented architect who made some unique and extraordinary custom design choices (read vaulted skylights) that made this property truly one of a kind. It As a Value-Add there is also an original detached carriage house that can become a permitted ADU.

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

I saw the income potential in a college town and ability to add value. Between forced appreciation on general improvements on the property and the capacity to add an additional residential structure, the sky was the limit on value growth.

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

It was on the MLS! As a licensed realtor myself, I was able to waive my commission and negotiate the sale personally.

How did you finance this deal?

I rolled some funds from a previous flip into this purchase. I also HELOC'd my primary resident and then took out personal loans to fund the improvements.

How did you add value to the deal?

The property had a large amount of deferred maintenance. After repairing and improving the usability of the home, I was able to get it rented out at the top of market. I also converted the other side of the property (it's a functioning duplex) into an Airbnb / Short Term Rental.

What was the outcome?

Ultimately, I sold the property for about break-even because of personal circumstances that changed in my life. I now operate the Airbnb on behalf of the new owners!

Lessons learned? Challenges?

So many lessons. Get a floor plan drawn out BEFORE you start the work! All contractors and all subcontractors need the SAME set of plans and it saves so much time not having to measure and re-measure.

I personally will probably not buy a property this old or with this much deferred maintenance. Alas - I learned every step of the way about ordering materials, working with contractors, scheduling, insurance issues, etc. It was a MASTER CLASS!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I represented myself in the purchase as well as the sale!

Investment Info:

Small multi-family (2-4 units) buy & hold investment in San Luis Obispo.

Purchase price: $1,150,000
Cash invested: $300,000
Sale price: $1,628,000

Purchased off the MLS! This property had my heart from the moment I saw the listing, but it took A LOT of work and calculations (and LUCK!!!) to get it down to a price that would make the numbers work.

Built in 1890, this Old Victorian was converted into a duplex in the 70's by a talented architect who made some unique and extraordinary custom design choices (read Vaulted Sunlights) that make this property truly one of a kind. It will take a huge amount of work to upgrade the property which has not been properly maintained, so we'll be doing a lot of infrastructure rehab including adding HVAC/AC, upgrading the wiring, and bringing the old floors back to life.

As a Value-Add there is also the original carriage house that is a detached structure to the property that we'll be doing as a permitted ADU / Tiny House.

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

I saw the income potential in a college town and ability to add value. Between forced appreciation on general improvements on the property and the capacity to add an additional residential structure, the sky was the limit on value growth.

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

It was on the MLS! As a licensed realtor myself, I was able to waive my commission and negotiate the sale personally.

How did you finance this deal?

I rolled some funds from a previous flip into this purchase. I also HELOC'd my primary resident and then took out personal loans to fund the improvements.

How did you add value to the deal?

The property had a large amount of deferred maintenance. After repairing and improving the usability of the home, I was able to get it rented out at the top of market. I also converted the other side of the property (it's a functioning duplex) into an Airbnb / Short Term Rental.

What was the outcome?

Ultimately, I sold the property for about break-even because of personal circumstances that changed in my life. I now operate the Airbnb on behalf of the new owners!

Lessons learned? Challenges?

So many lessons. Get a floor plan drawn out BEFORE you start the work! All contractors and all subcontractors need the SAME set of plans and it saves so much time not having to measure and re-measure.

I personally will probably not buy a property this old or with this much deferred maintenance. Alas - I learned every step of the way about ordering materials, working with contractors, scheduling, insurance issues, etc. It was a MASTER CLASS!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I represented myself in the purchase as well as the sale!

PM me!!! Or email

Hey @Steven Silbert! Great to see you on here. And big love to @Jawei Kuo who is a rockstar and colleague of mine in the area.

While the moratorium in Los Osos has been lifted, there is a LONG LINE of over 200 vacant lots that will have first right to build. The goal is 40-50 lots being issued permits PER YEAR over the next 4-5 years. I'm a homeowner in Osos and can tell you - it's been quite the contentious issue over here! 

That said, you could attempt to purchase one of the lots that is for sale and in doing so, you would assume their position on the waitlist. The position stays with the lot even if the owner changes. 

As far as house-hacking, the way I have seen this work (I have helped multiple clients with this strategy) is purchasing a duplex or a property that has an existing layout that could be CONVERTED into a primary and JADU. 

Ground up build for an ADU is indeed cost prohibitive, but possible.

Excited for your big move and to eventually call you a neighbor!!

Hi there! I am a lifelong resident of California - grew up in the SF Bay, went to school in the O.C. lived in LA for over a decade and relocated to the central coast during COVID. 

There are definitely still areas throughout the state with opportunity. It’s rare that a turnkey home would give you cash flow, so more likely you would buy something that needs a little work and is priced accordingly so that your loan amount is lower. 

Shoot for something that is outdated and needs cosmetic repairs. Price it out so that if the STR is too much work or regulations change, that it still makes sense.

I'm on the central coast and have one STR in a college town that grossed over $10,000 this month.

There is a ton of potential in CA and you get incredible returns due to property value appreciation! 

Hi @Juliet Silver! I am a local agent here in SLO and also own an investment property in the area. For the most part, I have been steered towards private or hard money loans rather than traditional lenders. There are a few apparently that are considering opening up their product offerings to include HELOCs on investment properties.  

Hey David! Glad to know of you and hope to collaborate in the future! I am a realtor and investor myself, but also happen to work with many investors as clients that are in and around Santa Maria / SLO. Will definitely keep you in mind! 

Hi @Shane White! Great to connect. I grew up in the SF Bay area, lived in Socal (OC and LA) and then ultimately landed on the Central Coast near SLO. I live and invest here and see huge potential throughout CA, depending on your priorities and level of involvement. 

Sounds like you've got great instincts and are ahead of the curve with understanding the most crucial element - which is adding value. 

Welcome to the BP community!