All Forum Posts by: Justin Gutierrez

@Michael Lambert

My name is Justin Gutierrez. I’ve recently sold a house in Los Angeles County, and looking towards my next venture. I’d love to connect with you and learn together.

@Diana Muresan, if he gets a 3.5% or 5% down-payment loan for a 2-4 unit, wouldn't that mean he'd have to live in it? Sounds like he's planning on visiting occasionally from San Francisco, not actually moving to the Biggest Little City.

@Reid Mathews

In regards to Don’s uncalled for attacks, take the words straight from Uncle G himself: “I love everyone, especially my HATERS!” 😎

@Reid Mathews WHO’S GOT MY MONEY? 🙂

Hi Brandon,

Thank you. I'd like to say I completely thought out the strategy, but a lot of it was timing, fast acting on the realtor's part, and a bit of luck. My brother and I began looking in 2011, and completed purchase in early 2012, a bad time for sellers, great for first-time buyers.

At the time, the house was valued at $333,000, but was a short-sale, so asking price was $300,000. The homeowners were attached to their home, and asked to interview my brother and I before sale. They liked the fact that we were family vs. a detached investor.

Both brother and I were on the title. Since we were first-time homebuyers, we qualified (barely) for a 3.5% down FHA loan.

After about 2 years, I refinanced the house for us at the exact same interest rate (4.37%), into a conventional 30-year mortgage, which eliminated PMI, saving us around $300 a month.

My brother and I both lived in the house for around 6 years. Our renters were our parents, who paid around $800 combined for the master bedroom (this was a 3 bd, 1.75 br house). Mortgage was about $1850, plus utilities. We collected total $2,400 per month, minus expenses, lead to about $300 profit per month (we split this at the end and used it for remodeling).

Value was added to the house as mentioned in my original post, while a HUGE amount of appreciation occurred between years 2012-2018. The house is now valued at $563k, so we barely escaped the recent decline.

Let me know if you have further questions.

Justin

What repairs are you planning to do? ARV means after repair value, right?

Sounds interesting, I shall attend.

Update: I sold the house at $595k. Thinking of using SFH or Multi-family as my next springboard.

I sold a single family home that I co-owned with my brother in June 2018. Original purchase price in Jan. 2012 was $300k. Sale price in 2018 was $595k. After all expenses were paid, and the profits split, I have $133k.

My goal now is to keep learning about real estate investing, and pick a strategy that works for my location (Southern California, single-family homes or multi-family).

What are some good areas to research to buy, and some California-specific resources I can consult as I learn?

Thanks,

Justin

Investment Info:

Single-family residence buy & hold investment in Whittier.

Purchase price: $300,000
Cash invested: $20,000
Sale price: $595,000

Co-owned my primary residence with my brother. Holding onto cash for next purchase.

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

It was a short-sale.

How did you finance this deal?

FHA 3.5% down.

How did you add value to the deal?

remodeled kitchen, bathroom, added paint on exterior and interior.

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

Josie Andre was buying realtor. Elizabeth Pryzblya was selling realtor. Very good!