Got tagged by th city and got post construction permits all according to the seller/agent.   

If you have something constructive to comment about I'm all ears otherwise keep your mouth shut.

Building constructed in 1980Present loan value appx $77k on a 15 yr note with 3.375% interestP&I pmt is appx $602NOI 2014 was $11489NOI 2013 was $5142      (spent around $4k on updates/remodeling)Appx $27k by my calculations of capital improvements needed in the next 5-10 years to increase the value of the property, properly maintain it, and keep it functionally up to date in order to attract higher quality tenants (located in a b grade area) (I'd rather have more invested to have higher quality tenants - have my own reasons for this line of thinking - willing to sacrifice a bit of profit to have good people)- Redo Kitchens- replace doors and all base trim/casing (more for my taste and would help the place rent out even quicker)- 2 escape windows installed for basement bedrooms- Concrete work needed on patios and near front of the house -- need to be done in the next yearProperty based on comps in the immediate area and a tight supply of decent duplexes here is $175-210k or so.  

The other option is a kaleidoscope of residential mortgages which just sounds awful, residential loans are a PITA to apply for.If they were in poor shape and this was going to be an extensive rehab and value added deal my bank would structure it as an interest only construction loan for the first 12-18 months.

At the time the market crashed, Reddings economy was rooted heavily in construction, meaning there was a huge swath of the population that suddenly were unemployed, and houses foreclosed on, etc. putting homeowners into the rental market.

Outside of these cases, a lot of investors use hard money to give them the ability to do more properties at a time if they have the construction resources to handle.

Moderator please close this thread as I my question may be too broad and vague to yield a constructive answer.

Does anyone use of sales tax permit to buy their construction materials on there own rehabs and flips?  

Instead I got into construction material sales and eventually into the recreational vehicle business.

Dear Bigger Pocket members,I have a group of out of the country investors which are very interested to invest in new construction development in Los Angeles, mostly multiunit projects.I would love to get some experts opinion on the subject.Acquisition costs, prices to build per sf, average lot (ready to build) and any other useful info.I am aware that I may not asking all the right questions, but I have to start somewhere.Thank you !