All Forum Posts by: Kevin Crosson

Hey Kevin, this is a personal decision, but if it were me, I don't think I'd bother because the strategy is to hold for the foreseeable future. Remember, whichever new tenant you put in will be locked in under rent control as well at the new rate, so in 5-10 years that rate will be relatively low as well. From a broker's standpoint, the most desirable scenario for buyers in LA (at least right now with inventory so tight) is to have units vacant on purchase. So, I would wait until whenever I decided to sell, then deliver the unit vacant. 

Interested to see what others have to say! I'm betting you'll get mixed responses.

Hey Leo! Most people who buy a multiunit to live (also called "house-hacking") in LA do so in order to start building their portfolio using maximum leverage, while also learning property management skills in an environment with a little less pressure. That 40% extra you pay could be offset by how little you're putting down, it just depends on the property and if there's still room for cash flow after that.

Hope that was helpful. Feel free to reach out if you want to know more! I've worked with a few people in the situation you're considering and would be happy to help you figure out if the strategy's for you.

Hey, Adam! Thank you for your service and welcome to BP! There's so much to learn and so many interesting people to connect with. I love the Temecula/Murrieta area, and have been amazed by how quickly it has changed in the past few years. It would probably be a great area to invest in for the long-term. Good luck with everything, and feel free to reach out and connect if you have any questions!

Hey Olivia, meetups like Joe mentioned are great ways to meet both investors and experienced wholesalers. We have a BP meetup in LA on the second Saturday of every month from 11 AM to 2 PM at UnUrban Cafe in Santa Monica. Feel free to reach out if you want to know more! Also, if you haven't already, set up keyword alerts in your settings so that you always know when people are posting about areas/strategies you're interested in.

Hey Josh, are you looking for a full time or part time opportunity? If part time, about how much time per week do you see yourself devoting? I'll keep my ears out for you!

Welcome to BP, Luis! If you haven't already, try setting up some keyword alerts. They'll let you know when someone mentions the areas/strategies you want to hear about on the forums. As for cash flow in Southern California, I'll echo Matthew by saying that you're probably only going to find 7-8% returns on the MLS. There are some small multifamily listed on the market in the Inland Empire that would provide double digit cash-on-cash returns, though. Just a suggestion. Good luck!

Hey Allen, the questions that Azeez posted are exactly what you need to answer. I'll add a few that are LA specific:

1) Are you basing your NOI on the current rents or pro forma?

2) Is the building rent controlled? If it is, getting to pro forma numbers in the near future without major outlay for a cash for keys program would be nearly impossible.

3) Have you calculated your capital expenses?

4) Is the building going to fall under LA's new seismic retrofitting legislation? If so, this will mean costly structural repairs in the next 5-7 years.

As a multifamily broker who specializes in the Westside, $415k/door, while not necessarily unreasonable, doesn't sound like a spectacular deal. Does the building have special qualities that would demand higher than average price/door? How much faith are you willing to put in those qualities?

I want to go back to Brent's comment about walking away...   your drive to get this deal done is admirable, but don't dive in head first just for the sake of getting off the diving board.

Hey, Ray! Kudos for learning from mistakes and getting back at it! BP's a great place to gain momentum. I have experience in marketing myself and I can't imagine trying to break into the RE industry without it. Good luck! Happy to connect and keep up.

Hey Kevin, welcome to BP! There are a lot of people on the site, wholesalers especially, who can help you get good deals on residential properties. To make sure you don't miss anything, I'd suggest you set up keyword alerts on the areas and property types you're interested in, so that you know whenever someone's talking about them. Good luck! Feel free to reach out  if you have any other questions or want to connect.

Hey Cris, welcome to BP! I wasn't big on social media either, but there are too many interesting people and topics on BP to not get involved. Glad to hear you're coming back to SoCal! Good luck with the Inland Empire property search. Feel free to reach out and connect.