All Forum Posts by: Shannon Shue

Investment Info:

Single-family residence buy & hold investment in Los Angeles.

Purchase price: $642,000
Cash invested: $135,000

BRRR is possible in Los Angeles! It is just a carefully planned process.

Bought a 2 bed 1 bath layout in Leimert Park (average price point as of Jan 2023 is $1M), remodeled the existing 1924 craftsman bungalow plus added a 3/4 bathroom/HVAC/200amp panel. Permitted an Accessory Dwelling Unit (ADU) by converting the existing 2-car garage and studio (720SF total) built in 1996 with a Certificate of Occupancy. The ADU is now a 2 bedroom 1 bathroom house with its own private yard. The plan is to short-term rent it but may switch to renting long term. The average rent for the rear ADU unit is $2400/month.

I BRRRed this house (Buy, Renovate, Refinance, Rent and Repeat). I was able to cash out and refinance $94,000 to pay myself back for the ADU renovation. My interest rate went down, the PMI went away (I originally only put 5% down) and my payment stayed the same, so that is a win. Refi value came in at $950,000 (which is $308,000 in equity in 19 months). I was delayed with COVID to start construction on the ADU, the City of Los Angeles Building and Safety Department has no system to issue and review permits digitally until at least 6 months after the pandemic hit.

I live in the front house. I rent out the back house until I find my next project. I am negative cash flow but I pay $1300/mortgage offset by the ADU income. Pretty decent rent to live in a completely renovated 2 bed 2 bath craftsman with a front and backyard in Los Angeles.

Thank you KJ!

I am looking for a negotiator who speak Spanish in Los Angeles to help me buy out or relocation my tenants in a residential 4 plex. Must have experience and a track record of success.

Investment Info:

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

Purchase price: $980,000

Cash invested: $49,000 + renovation costs (to spruce up the vacant unit)

4 plex in Adams-Normandie near USC. Each unit is 3 bedroom + 1 bathroom. I'm moving into the vacant unit.

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

5% down financing and the size of each unit.

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

Through the MLS and the listing agent used to be my old office-mate.

How did you finance this deal?

Conventional 30 year loan @ 4.375%

How did you add value to the deal?

I intend to renovate the vacant unit.

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

Worked with Michael Abrams at RPM Mortgage. I am an agent so I was able to do a referral agreement with the buyer's agent to get a small bit of commission back to me.

@Jo-Ann Lapin I am glad you noticed, this property doesn't have the full ADU permit so it will be a work in progress. @Will F. RSVP at Meetup.com

With ADUs being approved by the city and many rehabbers adding this for value, how does that effect to bottom line of a flip?

We will explore this midway project and the finished vision. Expect to learn the process of procuring the property, analyzing the returns and rehab costs.

Rehabbing in Los Angeles with an ADU permit is extra work. However, the returns can outpace the neighborhood comparable when saving interior and exterior character. Many of the homes in urban Los Angeles are older and buyers look for unique historic charm.

This LA bungalow was a 2 bed 1 bath and will turn into a 3 bedroom 2 bath home with an ADU. It will be a great example of We will get hands-on with Crystal Denmon. See how a beautiful home keeps the original craftsman charm while modernizing the design.

At this meet up, we will review:

• Acquisition and rehab costs

• Finding the Property

• Renovations being done

• Re-selling the property

Come prepared to get a hands-on look at the early stages of this rehab project. We recommend you wear covered shoes and be ready for a construction environment.

Afterwards, we will meet at:

Taqueria Los Anaya, 4651 W Adams Blvd, Los Angeles, CA 90016

Here we will network and talk about our needs and wants as Real Estate Investors.

Schedule:

11:00am - 12:15pm: Tour the rehabbed home, review financials and acquisition.

12:45pm-1:30pm: Meet and Greet over chips and salsa. Food or drink is not required nor included.

$20 will be collected at the door, please be ready with cash or a credit card.

The address to the rehabbed Crenshaw property will be given via TEXT message, so please RSVP at: MEETUP

Lydia is difficult to get a hold and I have another flip in Jefferson Park. Thanks for the update and insight. I'd love to meet in the future Shawn.

This is all very helpful. Thank you. I am looking to find the owner of an abandoned Church in Los Angeles and I can't find the owner's info on TLO at all. I figure it might be something that I would need to investigate through title and then circle back with the owner's name.

Hi All, 

I'm having a workshop to introduce AIRBNB as a short term strategy for investing in Los Angeles, next Monday and I stumbled on this thread. I know it has been awhile, so if you or anyone you know would like to look at purchasing property in LA, I'm holding this Monday, Nov 21 at 6:30pm in Marina Del Rey. 

Here is the link: https://www.biggerpockets.com/forums/521/topics/509189-invest-in-los-angeles-real-estate-for-airbnb-and-beyond

Will AIRBNB stay in Los Angeles or will it change?

Can you make more money with AIRBNB rentals than traditional renting?

At this MeetUp, we will explore the opportunities and the strategies available to new and seasoned investors, who are looking to use AIRBNB to increase cash flow and ROI. AIRBNB and other short-term rental sites are part of a sharing economy movement that is still being studied and understood by Los Angeles city officials.

We will explore financing an investment property with Samantha Scherr from Movement Mortgage. She is an expert lender for experienced investors or even the first time homebuyer. At Movement Mortgage, she is able to help financed buyers seem like cash buyers with her upfront underwriting and under 15 day closing options, to have competitive offers.

EVENT HIGHLIGHTS:

- How to find an investment property in LA for short term rentals? We will explore options to purchase and live in or rent out extra units/the whole property.

- How much to anticipate for financing an investment property?

- How to analyze a property for rental vs. AIRBNB income?

PRESENTERS:

1. Samantha Scherr, Movement Mortgage lender

2. Shannon Shue, investor, Realtor, founder of Hands On Real Estate Investing in LA

Please RSVP by clicking HERE (to my Meetup.com investor page)

This event is FREE! Plan for an hour presentation and networking with other investors before and after.

PARKING: Park in the lot next to the building, pull a ticket. Parking is free when you leave after 7pm.