All Forum Posts by: Mark De sagun

@Jennie Lyday congrats on getting your first few properties in TH. Where are you investing from? How did you get those properties? Through the MLS? Off market? I'd love to hear more details on purchase price, renovation cost, and expected ARV if you wouldn't mind sharing.

Hey everyone, I'm an investor in Los Angeles. I househack a 2-unit here in LA and have 1 rental in Indianapolis. The LA market lost it's mind and when I reached out to some people in Indianapolis, it seems like I'm probably priced out there now to do a BRRRR. I was told I might do better in Terre Haute. So here I am. Would love to connect with other people investing there.

This thread is just what I needed. Ok, I'm considering doing a renovation to add 2 units using either a 203k loan or a homestyle loan.  My question is are you allowed you pour more concrete and expand the foundation using either of these loans? I think yes, but my lender is questioning it, which going to make me question her knowledge if she's wrong. Any thoughts or experience on this?

@Shanell Law thanks for your response! I'm reaching out to them today

@Matthew Porcaro that's pretty crazy. Didn't think you could use a 203k toget a 5-6 unit and convert down to a 4 unit. That could be a good buying opportunity since a lot of people don't want to deal with getting a commercial loan for the 5+ unit properties. Officially adding 5-6 unit properties to my search!

BTW, I just got preapproved for a 2-4 unit fixer property using a FHA 203k loan up to $1M so let me know if anyone has anything in Los Angeles they're trying to sell!

Depends. In a big city, I might prefer to stay in a nice swanky hotel if the budget permits. Aibnb allows you to cook and really settle in especially if you're traveling with a big group.

@Christopher Boshae I househack in LA, but I put 20% down and am still out of pocket about $300/mo. I post analysis on 2-4 unit properties in LA on my IG @househackla if you want to check it out. I haven't really found anything that cash flows while you live in it. Househacking in LA usually just lowers your monthly housing expense and allow you to build equity and then if you ran your numbers right, you should hopefully be able to cash flow when you move out. I would say to cash flow while you live in it you'll need to put up a big down payment or buy a fixer.

Wow! thanks for all your helpful responses! This definitely gives me a jump start on my 203k search. Using a 203k seems like the perfect way to combine the benefits of both househacking + BRRRR strategies.

Anyone have experience using a FHA 203k loan in LA before? Would like to know what lender and contractor you used.

Any contractors out there work with a 203k loan before? I'm planning to do a renovation on a 3-4 unit property using a 203k loan which I hear some contractors don't prefer because payment from the bank can be delayed.

@Boris Suchkov @Sebastian Marroquin

Thanks for your reply! So I ended up not doing any upgrade to the foundation and just getting earthquake insurance. The policy premium is $70 a month and deductible is $40,350. I may have the foundation retrofitted sometime in the future, but not now. Felt like the insurance provided more safety than the retrofit.