6th flip in Los Angeles

39 Replies

Hey BP, I just wanted to share my most recent flip. This was in Los Angeles. This is my 6th flip and I haven't had a chance to share every single one but I'm pretty proud of my accomplishments in the last 2 years since I started flipping. I got a lot of negative feedback at first from people telling me it's a bad idea, it's too risky, local seasoned agents telling me I'm too late to the game and you can't do any investing in Los Angeles with $0 money. Well, 2 years later here I am. I started with $0 out of pocket, I've completed my 6th flip, I just purchased my 7th one last week and have 3 other ones in my pipeline, I left my job a year ago to go into this full time, and each deal after the first just kept getting better because I kept learning how to make it better. I'm sharing this not to brag, but to show those of you particularly in Los Angeles, that it can be done if you have enough desire. This is not at all to say it was easy because there is nothing easy about this business. With that said here are the details and links to the pics.

Property: 2/1 800 sq ft./5,000 lot

Purchase price: $413k

Rehab: $55k 

Rehab time: 6 weeks

Initial ARV: $580k

Listed: $599k

Appraised: $635k

Sold: $653k

Pics:

Before - https://app.box.com/s/mhqk541iubkj84ibf4pa9x63cdex...

After - https://app.box.com/s/21n6e5igy958bl6wdzagvmciecyr59z7

Can I shadow you?  Follow your work

?

nice work! great flip

@Adriel Liwag Wow, thanks for sharing this.  Awesome work and pictures look great.  But I'm sure everyone wants to know.  How'd you finance this thing?!

@Alex Bekeza Thanks Alex, I've always had a partner and we've used HML on all our deals.

Looks great and solid numbers!

There is hope yet. What advice would you give for someone looking to house hack? Are there opportunities there?

Thanks @Brian Garrett

@Alex Price there is house hacking opportunity for sure but the cash flow really wouldn't be that great and neither are the tenant laws. This is not to say it can't be done and be somewhat profitable. 

Way to prove them all wrong @Adriel Liwag !  Sounds like you are hitting your stride and not looking back, well done!  Your finishes look amazing!  

Any thoughts on why you were so far off on the original ARV or did you just end up calling an audible and going top quality finishes once you got started? Either way, great job!

Cheers!

@Jon Crosby thanks for the support! My initial ARVs were conservative numbers based on solid sold comps. I don't want to over price my ARV and set high hopes and it also keeps my over all numbers conservative and easier or more realistic to sell to my passive investors. My favorite part in the process is being able to deseign and renovate a home to the highest quality possible at the least dollar amount possible.

Not sure why the seasoned investors would say that as LA still has the highest average flip profit nationally at 169k per. Any certain areas you are focusing on or just anything anywhere in LA? 

@adriel Nice Job man!  Excellent work.  Surprised your rehab was 55K based on the pictures.  Keep up the good work. Jay

@Matt R. these are seasoned retail agents who don't understand investing in general at all, they are focused on the retail sales. That's the problem with most agents, they either don't do any actual investing theirselves and don't understand calculating rehab, holding cost etc. Ofcourse not all are like that but there are very few agent that are knowledgable on the investing side. As far as areas go, I do flips anywhere but mainly focusing on the hot up and coming areas around DTLA. 

@Jay Senaratna Thanks!

Awesome job Adriel! I love seeing people blowing their original ARV estimate out of the water. We're seeing that a lot lately around LA. Keep killing it!

First, it is incredible you were able to do so much in 55k in LA. Second it is amazing that this is going for 650k. i.e. 2/1 800 sq ft!!  This is a really tiny house, smaller than apartments  and I am not buying the garage conversion. Also, the quality of the kitchen seems high grade compared with the neighborhood. I am glad it worked out so well.

Congrats. I think if you can make it in LA, you can make it everywhere and anywhere lol

@Vinay H. Thanks!

It's crazy because quite frankly I wouldn't buy the houses I flip myself at those price points. lol If I had that kind of money to spend on my home, I'd be buying something bigger and away from the city. But that's just me and I have a family to raise. 

Adriel,

This is great! thanks for sharing!  Great inspiration. 

@Adriel Liwag ,congrats and thanks for sharing. It's good you didn't listen to the naysayers that said it could not be done. L.A is the second largest city and we can see from the MLS/Redfin flips are going on , but it seems rare to see them mentioned on BP unfortunately.

 You did a really nice job on it. Looks very classy. 

@Joseph M. thanks! ya, there really aren't a lot of local flippers that are on BP.

Thanks for sharing your success story! I am a newbie in the LA/OC area and looking to get into flipping in the area with little capital to start. I have also gotten a lot of negative feedback from the people around me which is so discouraging. It's great to see someone that started in a similar position become so successful!

Originally posted by @Vinay H. :

First, it is incredible you were able to do so much in 55k in LA. Second it is amazing that this is going for 650k. i.e. 2/1 800 sq ft!!  This is a really tiny house, smaller than apartments  and I am not buying the garage conversion. Also, the quality of the kitchen seems high grade compared with the neighborhood. I am glad it worked out so well.

Congrats. I think if you can make it in LA, you can make it everywhere and anywhere lol

 $650,000 is a lot but it can look 'cheap' when looking at some other parts of L.A where homes the same size are over $1 million. For example here is a property closer to the beach...but not at the beach which is $1.325 million asking price.  Probably doesn't look nice inside since there are no interior pictures too. 

https://www.redfin.com/CA/Culver-City/3932-Glencoe...

There has been a ton of  development in Downtown L.A and the surrounding area and traffic has gotten very bad ..more people want to live near work... so that has helped to to increase the prices. 

The areas of L.A near the beach also have seen a ton of tech companies moving in paying big salaries and stock options so this has helped to push prices up even more.

Thanks for sharing this. I am really impressed with the improvements to the house for only $55k. Great work.

@Adriel Liwag Great job on this deal man!! Where did you find this deal, MLS, auction?

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.