All Forum Posts by: Sebastian Marroquin

Cancelled. 

This may not be a big deal like many people are saying… but this is a huge purchase for you so why not do as much due diligence as possible. 

I would get a structural engineer to the property. Most would charge about 800 to $1k to do the observation. It has been many years since it happened… so you should be fine… but doesn't hurt to check. 

Also think about future for the property? Will you keep it forever? or will your rent it out or sell it in the future. 

The next buyer will also inspect it and will also have a problem with evidence of previous fire… 

So it will help to have an engineer look at it and say it is safe to live there. 

It's all about you feeling safe in it. If you feel this would help, simply do it! Same for the foundation, roof, electrical and plumbing systems. 

Good luck 

The answer is yes. If you see comps in the $800k to $850k for the home (no adu) then once you renovate the home - by itself it will be valued like other homes like it that are renovated (likely around $900k ish) Be careful with numbers mentioned and do your own homework of course. 

Also be careful with the ADU, bc they may be calling it one but it may not have permits. (I would question it since the main home is not renovated) what are the chances that they did everything right on the ADU but didn't have the funds to do the home… hmmmm doubtful

Make sure they have the permits (call the city and see if they have permits on file). 

You could also instead: get a construction loan and buy a fixer home with no ADU and you build it yourself.

usually - I see people buying a home like this for $650k to $700k and then adding the ADU for $100k where you end at $750k to $800k with a well renovated home!

Let me know if you need help! good luck 

Total PITI : $2,800 p/m

ADU: Rents : $1900 p/m

Home : would rent for $3k per month 

Potential Gross cash flow: $2,100 per month 

Purchase: $500k 

Current ARV: $900k

Can these numbers be achieved today with high interest rates and high prices ? 

That's the question of the hour. 

Our neighborhood is selling homes without the ADU for $800k to $850k deepening on the condition.

Would you buy a home here for $800k for this strategy? 

There are many homes in areas outside of Claremont that are selling for $500k to $650k 

Many of the people we know are buying homes like this one with a construction loan for the ADU ($100k) and buying a home for $700k + $100k : $800k total at 5% down payment and ending with a total payment (PITI) of $6k minus $2k rents from ADU

Total new payment of $4k which is easier to make and once interest come down some, they will refinance to drop their payment to $3k to $3,500 per month. 

They add $100k to $150k of value to the property in year 1 and build equity at a 5% rate per year. 

What do you think? Is this a good idea in today's climate? 

This will be a recurring meet up! Come learn, meet like minded people and network with people in the industry! 

I am a realtor and have helped over 100 families buy and sell. I help investors identify off market opportunities, renovate and build ADUs. 

I also know a lot of people in the industry. From lenders, to builders, developers, private lenders, contractors and more. 

We are looking to learn from each other and create opportunities for one another. 

RSVP and send me a message to let me know you are coming! Free Event and Free Parking! 

@ FitRealtor_  on instagram 

Look forward to seeing you all there! 

Let me know if you have any questions 

It sounds like you need to consult with Eviction attorney, CPA/ Tax professional, Great Realtor and Lender for this. DO NOT close escrow before talking to these people. 

I have a great attorney in LA if you would like. DM me.  Unfortunately 98.7% of landlords that are selling these type of properties, do so bc of low rents and bad tenants… so you will have to solve that problem. But many investors get rich and build wealth buying "value add" properties like this one. Just make sure you don't over pay… That's a math calculation. 

Get a good realtor that can walk you through this! GOOD luck 

Work with both! :) 

As an investor, you have to have not 1 way of getting properties, not 2 ways… but more like 10 to 20 ways of getting off market homes (or better yet.. good deals). 

and keep in mind, that I am a realtor :) 

The name of the game is "options" 

You do want to have a great Realtor that you can bounce ideas and comps off of. Hopefully you respect their time and are loyal to them once the time comes to sell the properties. 

I get calls and texts from my clients all the time saying, "Sebastian, what do you think about this deal from a whole-seller?" 

and I don't mind giving them my opinion of value and doing some work for them, as they give me referrals and business when ever they can! Often times I go to other realtors in my area and let them rep. my buyers as long as I get the listing back once the homes are ready for sale. 

So, to recap, work with Realtors, Lenders, Whole-sellers, other investors, friends, family, direct to seller mailers, cold-calling, etc etc to get the deals. Build a team of trusted people / advisors (ie contractors, lenders, realtors, wholesalers, drafters, architects, title reps, escrow officers, etc to m are sure you all achieve success!) 

Good luck 

Agree and agree! :) 

Pasadena has been a great city for a long time and the crazy part is that it is growing even more. 

They are building, essentially, another old town "like" area on Orange grove between Lincoln and Los  Robles! It will take time but it will get there. 

The last sections of Pasadena where you used to get "cheaper" homes at North West Pasadena (between Washington and Woodbury and Fairoaks and Lincoln) were homes used to be under $700k are now going for $900k as fixers and over a million when renovated or addition of sq ft!! The same with central Pasadena closer to Villa Park. I grew up in both these areas between 10-18 yrs old and have seen the city grow. These used to be the "hood" areas of Pasadena and they are still to some extent… but they are selling for $850k+ (the small homes that is… ) 

You can easily go to North West Pasadena and buy a home for $750k that is only 900 sq ft and add 1000 sq ft and an ADU and make that home's value jump between $1.4 to $1.6 (or higher in some cases). Rents are through the roof also. I have clients renting 400 sq ft ADUs for about $2,200 per month and climbing.

You can get great tenants willing to pay as you have Caltech, JPL, The hospitals, Medical schools, Private High Schools and Elementary schools all within the city! 

The main issue with Pasadena is the high price of entry and long timelines for Building and safety permits. 

You can easily take between 8 and 14 months getting permits and that's with a great drafter or architect (which we have). 

I def. want to own something in Pasadena. Bc the $800k homes will be $1.5 or higher in the next 10 years + 

and there are a lot of homes zoned for multi units. You could go from 1 home to 4 , 8 or 12 if you have the appropriate resources!