All Forum Posts by: Josh W.

Thanks @Lee Ripma! The property is in Inglewood, just south of Ladera Heights. The rents are about 2K for a 2/1 unit, but with a rehab, I think $2100 is possible. This all hinges on me living in the building, as I do not have enough cash to put down 25% and cover the rehab (which I will most likely need to finance with a HELOC)

I will do my diligence, but I'm not sure how long the rehab process would take. There are two vacant units, and wit 60 days, the other units can be vacated with notice for a nominal fee.

As my first RE investment, do you think this is too big of a job? I liked what you said about being able to learn all of the ins and outs during the rehab. I'm on the fence!

@Lee Ripma thank you for your experience. What mistakes did you make on the first deal which caused the cash hemorrhage? That is my biggest concern haha. What would you do differently? 

@Seth Borman the property taxes are definitely high. The low down payment would only be to owner occupy one of the units. 3 units are identical, the "master" unit is actually a separate 2/1 house with a private yard, fireplace, and private swimming pool (which is empty and needs rehab). 

The $1.2 assumption is based on comps sold recently in that area. Could potentially be worth more.

All the rents I quoted were for 3 units comped for the area assuming top dollar post rehab. To @Lee Ripma's point, this is a big rehab. Floors, bathrooms, interior paint, exterior paint, HVAC, pool rehab, most likely termites, and still need to check the structural work. The last contractor quoted 150K but I know things can balloon from there. This work needs to be done on the entire building. 4 units.

The building can be delivered empty which would allow me to rehab the entire property at once. My plan would be to hold this property for at least 10 years, most likely more. After one year living in the "master unit" I could then rent it out separately at a higher rent.  Does that make sense?

@Michael T. I know some of those numbers will change, but based on my credit and pre-approval, that is what my mortgage broker is quoting me. FYI this scenario involves me living in one of the units in exchange for having an additional 90K in liquid cash. My perfect credit scores (all 800+) should allow this as owner occupier. However, if I were to put 20-30% down and rent all units (4 instead of 3) my numbers would look more like the analysis I have attached here (based on some of your corrections as well).

My biggest concern is that this would be my first real estate purchase, and the 150K rehab is a bit daunting, as I know sometimes that number inflates. Would love to hear more of your wisdom!

I am considering a 4 plex house hack in Los Angeles where appreciation has been fairly high (though subject to change), and I'm considering living in one of the units and renting out the others. However, this property needs a MAJOR 150K rehab before it can be rented. The upside is that it's probably the worst property on an otherwise nice street with good rental demand. It's going to be a lot of work (and also my first real estate deal) so I'm wondering if I'm getting in over my head?

Any wisdom would be appreciated!

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Thank you @Michael Ablan! Very great insights! I am now looking into the value 4plex option. Could be a winner in this area!

Wow! Thank you all for the information... it is incredibly useful. I will be doing my homework on this subject and I appreciate the opportunity to reach out again with questions, it is certainly helpful to speak with people who actually DO these types of deals. Please let me know if I can help you in any way!

Thanks @Aaron K. I appreciate the input. Are you aware of any spreadsheet or tool useful to determine the quality of the property/deal/financing?

Hello everyone,

I am thrilled to be a part of the BP community! I live in Los Angeles and have been working as a television producer, however, my goal has always been to purchase a multifamily home to use as my primary residence, and also to begin investing in real estate. 

As you know, Los Angeles is not the best place to find affordable housing, and the prices can be quite inflated. However, after speaking with some people, I have been considering using an FHA loan to purchase my first multifamily property within the next year or two (the inventory is slim, so I am on a long term hunt right now).

Does anyone here have experience using FHA loans to build their real estate portfolio?

Do any of you have any experience in the Los Angeles real estate market? 

I love the idea of buying a property I can actively manage for at least one year, and I get excited just thinking about it. Not to mention I am pretty handy and can do many small repairs on my own (I actually enjoy it).

Any help would be greatly appreciated! I just want to know if I am on the right track. Thanks!