All Forum Posts by: Quaid Cde Baca

What are you systems in place (if any) to manage this property/ the PM company when this arise?

Will you scale this to other areas of the country or try and stick to that area and use the same PM for a few properties first before branching out?

I'm in LA (new to investing), but familiar to Reno and new construction (with a construction family) and ball park $200/ sq.ft. for rehab and $400/ sq.ft. for new construction/ additions. That might be a little conservative. 

Can anyone else speak to those numbers in LA or similar high-priced markets?

Im in the same boat as you buddy. Let me know when you get close your first purchase. In the mean time lets hope Hollywood opens up more and we both can land a big $how ;)

I keep looking at RoofStock as being a very inviting way to see budget friendly out of state options, but would require more due diligence and maybe some feet on the ground to ensure a smoother deal/ smarter purchase. Can anyone touch on RoofStock deals?

     I'm a steadicam operator in LA, and I've been reading, deal analyzing, researching local and distance real estate options for a first investment for years now (like so many). Roofstock sounds like an easy first-step to find a turn-key-ish property cheaper than LA, and seemingly simple to get into. Has anyone had a smooth experience with Roofstock? Any advice when handling distance purchases outside the usual due diligence (your own inspection, area analysis, etc.).

Current condition:

~$125K all-in budget     •     Focused on cash-flow and buy-n-hold     •     Focused on learning via 1st property more than a return.

I hate it when the rug gets pulled right out from under me... :(

I have a fair sized fund of capital for a purchase and rehab for a property in LA that I was shopping around for, excellent credit, and well over six-figure income... but with all the investment asset deductions that my company purchases each year, my taxes show only a whopping 36K taxable income for underwriters to use for a loan, and then toss out all other deducted income. I know, I know. I learned the hard way: pay minimal taxes or be able to qualify for a home loan, but you cant have both... Even if I bought cash (hypothetically), they said applying for a refinance would still be difficult (even at 75% LTV).

• $200K purchase + rehab fund

• 784 credit

• $9,000/ mo. actual income

• $2,600/ mo. qualifying taxable income (after deductions)

Has anyone encountered this situation? According to most lenders, I'm stuck for 2 years while I pay proper taxes to later qualify... OR, I find a co-signer. Any advice or work arounds? Anyone looking for a capital investor, haha?

 I definitely want to try the BRRRR method eventually, but not for my first property. Are you planning on renting both units in the duplex or living in one unit to offset costs? And then are you planning to turn the 2-car garage into a 3rd unit? Interesting idea to get the cashflow right away...

@Sophie Latapie I'm planning on BRRRRing my first deal, but the back-up is a house-hack, with a back-up back-up being a sale, and the last option is foreclosure and rock bottom bankruptcy.

I'm planning on rehabbing the units immediately minor within a month > renting both units > ADU construction over many months while I stay in my current housing or move in 1 unit, but now with minimal holding costs. Yes, planning to move into the new construction garage-ADU convert (new) 3rd unit (but technically not a triplex).

A David Greene tip I heard: Add square footage/ rooms/ bathrooms/ units to exponentially add value.

@Rico Nasol Rico the man! That's where I'd love to be someday. Message me when your free to chat this week! I don't need to tell you how scary it can be on your first deal coming into this new industry. All the what-ifs, and hidden costs that might break me.

I'm narrowing in on a live-in/ house-hack in a duplex with an existing two car garage, with the intention to immediately convert that into an ADU for myself, until I soon thereafter refi. and start the process over.

Maybe on the next one I can have the confidence to go with hard/ private money cash buy/ rehab. For now I'm looking at all the creative tools to make my first BRRRR easier/ safer as a first investment, and to have a larger cash rehab budget. I.e.- downpayment assistance programs, grants, FHA 3.5% down (more rehab budget), etc. *I have already completed the HUD homebuyer education program to qualify for said grants and programs.

What creative assisting programs have you used/ know about, and can you share any advice about my strategy here?

LA... such beauty, excitement, diminishing air quality– I love it all. ha

I'm right there with you shopping for the same situation. I found that the best deal might come from a page of David Greene's BRRRR mantra: Add a room, square footage, units, etc. to add value.

I'm shopping for a duplex with a 2 car garage for cheaper ADU convert. It requires more capital, loans, or creative thinking, but will easily cashflow immediately once completed. And minimal holding costs since the other units are rentable right away (unless you want to update them).

Welcome @Sylvie T.!

I know I personally could use your help, ha!

Hey BP nation!    

      I'm new here (long-time listener, first-time caller, blah, blah, blah). I'm interested in hearing about the LA BP's lending experience/ recommendations are. I'm open ears, open messages, and ready to listen up like we're on a first date!

     About me:

• 1st time home buyer

• ~794 credit (who knows what it really comes out to when/ where they pull it from)

• $101,500/ annual income S-Corp business owner (4 years)

• $200K available for Purchase/ closing/ rehab

• Looking for 10% or less down, in-order to have heavy rehab funds > quickly cash-out refi. *(Is that ill advised? I'm not sure. I don't know what I'm doing yet.)

    Now... enough about me. Tell me more about you ;)

• What company was smooth? Who was a dream to work with?

• Best rates? No origination fees?

• Good communication? Understand our investing/ BRRRR strategy?

• Any interesting unique lending options they offered that worked for you?

• Recommendations to avoid?