Multi-Unit Investments in Los Angeles Area

12 Replies

Wanted to reach out to any wholesalers and investors in the Los Angeles area who are dealing with multi-unit properties. My business partner and I are looking to invest mainly in and around the Mid-City, West Adams, and Koreatown areas but would be willing to give others a look. I would love to speak with anyone in the BiggerPockets community who deals in this space and discuss further. 

Anyone who is currently dealing in this space, any input on multi-unit investment in and around the Los Angeles area would be greatly appreciated as well. I’m really looking forward to getting active in the BiggerPockets community and networking with people dealing in the Los Angeles market.

Looking forward to meeting a lot of you and making some deals happen!

@Travis M. You will have better luck of telling here what you are looking for and how much budget. Multi-unit is from 2+ units, it could be 200, 500, 1000. A price range of 500k-100M. You might need to be more specific to get traction.

@Manolo D. Thanks for the help,  I should have been more specific as far as the criteria in the first post! As far as the Los Angeles area goes, below is a little bit more information on what we're looking for.

3-8 Unit Buildings

$500,000-$1.3 mil in price range

Seeing as we are looking in Los Angeles, a lot of the "rules" (rent rule, etc)  are difficult to apply in this market, so we are able to fluctuate on these numbers as long as the deal would make sense.  

@Travis M.

Few tips:

1. Try to stick to a 4 unit because it is given a resi loan(30 year) compared to 5+units which is considered a commercial loan of 5 years. 

Make sure you have a RE Agent fighting on your side. Some sellers are "over-pricing" their properties because of the influx of overseas buyers with all cash offers. 

@Travis M. That’s more like it. Also it would help if you tell the BP Comm how much you have in cash to play with, this will give you a filtered view and perhaps a connection for lenders. No rules apply, this is CA.

Travis,

Pm me or attach your email I have 5 potential properties

@Travis M. I just sold my triplex for 550 in west adams. You should familiarize yourself with RSO first before buying in Los Angeles. 

@Edward P.  Thanks for the input! I have a couple of real estate agents in Los Angeles who deal with multi-unit properties helping me out and they have noticed the same thing in terms of pricing. As far as the units go, anything with 5-8 units we would more or less come in with all cash so we wouldn’t have to deal with the financing aspect, while with the 3-4’s we possibly would go the more traditional route with a residential loan.

@Manolo D. We have a good amount of cash to play with (1mil+) and depending upon the property we could come in all cash. I am always looking for connections with lenders and would love to connect with anyone in the BiggerPockets community who deals with lending.

@Mel Hayes I am familiar with the RSO in Los Angeles. We are looking to add value to the properties where this ordinance can actually play into our advantage if handled properly.

Thanks everyone for the input! If there is anything I can do to help out the community please let me know and I'll do whatever I can!

Hi @Travis M. , I'll be farming for SFRs in some of your areas shortly, and if I come across any MFs, I will reach out to you.

Originally posted by @Edward P. :

@Travis M.

Few tips:

1. Try to stick to a 4 unit because it is given a resi loan(30 year) compared to 5+units which is considered a commercial loan of 5 years. 

Make sure you have a RE Agent fighting on your side. Some sellers are "over-pricing" their properties because of the influx of overseas buyers with all cash offers. 

Your first point doesn't apply if the OP plans to own the property under an LLC. You're automatically going to a commercial loan at that point. I think it's a wise decision to have the protection of an LLC, but opinions differ on that topic. Not trying to sidetrack, but the OP should know that 30 year fixed probably won't happen unless it's put under their personal name.

@Summer Brighton That would be amazing! If you do find anything let me know

@Dustin Beam Thanks for the input! I'm new to these forums so could you let me know what OP stands for?

@Dustin Beam Well written. 

So to confirm, any property bought under an LLC is automatically a commercial loan?

Originally posted by @Edward P. :

@Dustin Beam Well written. 

So to confirm, any property bought under an LLC is automatically a commercial loan?

As far as I know. But maybe there's an exception? By definition, an LLC is a company. So I don't know that a company is going to get a nice 30 year fixed rate at a personal mortgage rate.

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