All Forum Posts by: Matt Nuttall

An avid investor with multiple properties in my portfolio that cash flow, i Recently Have been leaning towards a 2nd home in the mountains to take my family. Of course, I always have my investor Hat on and found a property I believe I can cash flow on with 20% down. So, I recently put an offer in on a condo in mammoth lakes Ca. I would plan on renting out the property consistently myself. It’s in a great location for both summer and winter with all the amenities a short term renter is looking for.

As much as my heart and desire is steering me towards purchasing this property... the other side of me is saying “ have you lost your mind? “

I’m in a bidding war. Currently over asking by 11K.

Uncertainty with Covid for winter skiers could put my cash flow at risk. We all know, what’s the 1st thing to go when people are in jeopardy of losing their primary residence... their vacation home.

My income is sound even during covid and ( knock on wood ) And confident I can swing this ...

BUT - id like other opinions.

Thoughts?

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $1,200,000
Cash invested: $300,000

Long Term Appreciation play. The South Bay of Los Angeles has been a very HOT market for quite some time. Cash flow is break even for now.. but i like what the future holds for equity gains.

Hey Karl,

We have a problem tenant thats only paying $900 monthly. Aside from them, $1500, $1800, $2400, $900. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in East Los Angeles.

Purchase price: $475,000
Cash invested: $70,000

4 Unit acquired with business partner Chris via Hard money. Hired architect, engineer, and contractors for Major Remodel for 2 of 4 units. Challenging project to say the least. Learned a TON. BRRR

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

Incredibly low purchase price @ 475K. Huge Upside

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

Partner Chris brought deal to the table. Concrete Foundation concern scared away majority of buyers. Had licensed contractor perform foundation inspection right away to get professional opinion. Presented all cash offer via hard money loan within 48 hours of viewing property.

How did you finance this deal?

Hard Money.

How did you add value to the deal?

Redesigned 2 of 4 units. Added total of 3 bedrooms and 1 bathroom. Performed major remodel. All NEW stucco exterior, windows, roofing, concrete, foundation, wood floors, plumbing, electrical, deck, etc.

What was the outcome?

Refinanced after 7 months out of hard money loan onto 30 year fixed. Each of us pulled out 1/2 of our initial investment. Property management In the process of renting out 2 vacant units.

Lessons learned? Challenges?

Know tenant laws and rights in CA before you acquire a nightmare tenant that is aware of the liberal loop holes. If going through eviction process, hire an EXCELLENT attorney. Pay the extra money for GREAT legal representation that knows RE law in CA.

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

Eric Weidner Civiv Financial - Hard Money
Josh Glaz -- Conventional loan

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $475,000
Cash invested: $70,000

Acquired with Business Partner Chris 50/50 via Hard Money. Gutted 2 of the 4 units. Hired Architect and engineer to add additional bedrooms to each unit. New Concrete driveway throughout, new landscaping , Major roof, foundation, window, plumbing, electrical, work performed. Fired a contractor and lost 50k in the process. Found new contractor to complete project within budget. Currently exercising renting to Section 8 Tenants. Property will cash flow well once all 4 units are rented. #BRRRR

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

Excellent purchase price with big upside.

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

Business partner Chris Miller

How did you finance this deal?

Hard Money

How did you add value to the deal?

Comps in Area. Bids from Sub Contractors of various trades.

What was the outcome?

BRRR! Got appraised @ $1.1 Million. Refinanced onto 30 yr fixed and pulled out 1/2 of cash invested. 2 of 4 units rented. Once fully rented, will cash flow

Lessons learned? Challenges?

Aquired a Nightmare tenant paying well below market value for rent. Went to court 5X over 6 months of non payment of rent. LOST due to lawyer's malpractice. Lesson learned - Spare no expense and HIRE THE RIGHT LAWYER.

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

yes, Eric Weidner with Civic Financial.

@Benjamin Seibert

Thanks Benjamin.

@Michael Hastings

Hi Michael, yes sir. House hack.

@Lee Ripma

1 unit was vacant. The other occupied.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $640,000
Cash invested: $40,000

Single family home in the "Circle Area" of Long Beach Ca. Front house was completely remodeled in 2018 prior to purchase. Turn Key, 3 bedroom 1 bath in front w/ private studio in the back.

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

Turn Key property with 2 units. Rent's pay for mortgage. Breakeven investment with low money down.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $600,000
Cash invested: $150,000

Fixer Upper Duplex in the "Wrigley area". Purchased for 600K. Did a complete remodel and appraised for 750K 90 days later.
I see Long Beach as the next "Santa Monica" of Los Angeles. Great upside for appreciation.

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

Great purchase price @ 600K. I was confident I could remodel the property and raise rents to market value. Took overall rents from 1200 to 4400 monthly.

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

Patience and persistence.

How did you finance this deal?

Conventional Financing.

How did you add value to the deal?

Complete remodel of property.