Off Market Deals in Orange County, CA

Buying & Selling Real Estate
6yFollow

Off Market Deals in Orange County, CA

Peter Mai
Member since 2019 · 21 posts · 4 votes

Anyone have tips on how to find off market deals in Orange County? I want to house hack using a FHA + build ADU strategy as my first home/investment property. I can't find any properties that will get me to cash flow upon completion of an ADU unit and renting out both units (after 1 yr occupancy requirement). At best I am calculating break even cash flows based upon CRMLS, Redfin, and Zillow listings.

1Reply
30 views

Most Popular Reply

Matthew Forrest
Rental Property Investor · Torrance, CA · Member since 2016 · 263 posts · 132 votes
6y

@Peter Mai

Unfortunate I don't know how to get access to off-market deal in OC other than you cold calling and sending letters (that's what I am doing in Torrance), but you might want to look around the forums for a wholesaler.

If you can't find a property to purchase under market valve, you might want to take a look at lowering your post acquisition costs. I look for properties that have existing space that is underutilized and not permitted to be habitable (in-law suite, granny flat, bonus room, hobby rooms, pool house). For my specific property I took a 700 sqft "hobby room" and converted it to an ADU for ~$50,000, which is significantly less than than a new build. This lowers the amount of capital required for the property and lowers your monthly PITI payment. Good luck searching!

2Reply
See this reply in the discussion

9 Replies

Jump to latestLatest
  • Matthew Forrest
    Rental Property Investor · Torrance, CA · Member since 2016 · 263 posts · 132 votes
    6y

    @Peter Mai

    Unfortunate I don't know how to get access to off-market deal in OC other than you cold calling and sending letters (that's what I am doing in Torrance), but you might want to look around the forums for a wholesaler.

    If you can't find a property to purchase under market valve, you might want to take a look at lowering your post acquisition costs. I look for properties that have existing space that is underutilized and not permitted to be habitable (in-law suite, granny flat, bonus room, hobby rooms, pool house). For my specific property I took a 700 sqft "hobby room" and converted it to an ADU for ~$50,000, which is significantly less than than a new build. This lowers the amount of capital required for the property and lowers your monthly PITI payment. Good luck searching!

    2Reply
  • Peter Mai
    OP
    Member since 2019 · 21 posts · 4 votes
    6y

    Hey @Matthew Forrest, thanks for the reply!  That's a great idea and will be something I look for as my search continues.  As of late, I have been targeting garage conversions as a cheaper alternative and have not though about the options you mentioned.  Do you have any before/after photos that you wouldn't mind sharing?  I would love to have a look at what you were able to create.  

    0Reply
  • John A Murray
    Rental Property Investor · Long Beach, CA · Member since 2019 · 145 posts · 49 votes
    6y
    Hi Matthew,
    I think it's great that you did your conversion for $50k, you show what's doable. Would you be so kind as to share your conversion cost by category for your ADU? A poster here from Santa Maria converted his attached two car garage for $37k, $6k of that were impact fees. He did his own contracting and elbow greased a bit himself. Thanks!

    Originally posted by @Matthew Forrest:

    @Peter Mai

    Unfortunate I don't know how to get access to off-market deal in OC other than you cold calling and sending letters (that's what I am doing in Torrance), but you might want to look around the forums for a wholesaler.

    If you can't find a property to purchase under market valve, you might want to take a look at lowering your post acquisition costs. I look for properties that have existing space that is underutilized and not permitted to be habitable (in-law suite, granny flat, bonus room, hobby rooms, pool house). For my specific property I took a 700 sqft "hobby room" and converted it to an ADU for ~$50,000, which is significantly less than than a new build. This lowers the amount of capital required for the property and lowers your monthly PITI payment. Good luck searching!

    0Reply
  • Joe HomsBusiness Member
    Flipper · Mission Viejo, CA · Member since 2014 · 2k+ posts · 1k+ votes
    6y

    @Peter Mai  Wholesaling here in Orange County California has become very difficult, if you don't have the time, patience, and mostly money to address the situation.  Here are the areas to concentrate on:

    LEAD GENERATION

    1. Bandit Signs
    2. Cold calling
    3.      Probates
    4. NOD's
    5. Direct Mail (Very expensive and I don't waste my time or money on this)
    6.      Any list
    7. Door Knocking
    8. NOD's (Least expensive way to directly speak with someone who you know is in trouble.)
    9. Websites
    10. Facebook/Google Ads (This is where I get the most bang for my buck.)

    Hope this helps.

    Good Investing...

    [email protected]949-625-4533
    1Reply
  • Matthew Forrest
    Rental Property Investor · Torrance, CA · Member since 2016 · 263 posts · 132 votes
    6y

    @Peter Mai

    I took a lot photos, but I don't have access to everything right now. I never really thought about it, but I should do a write-up or something of what I did and post it! Thanks for the idea. Here are a few photos for now. 

    @John A Murray 

    Good idea on separating out the costs! I'll include that in my write up.

    0Reply
  • Peter Mai
    OP
    Member since 2019 · 21 posts · 4 votes
    6y

    @Matthew Forrest

    Nice work! I’ll be sure to check out that post. Can you share your contractors info?

    0Reply
  • Peter Mai
    OP
    Member since 2019 · 21 posts · 4 votes
    6y

    @Joe Homs

    Thanks for the tips! I might explore those routes as I build my experience in real estate.

    0Reply
  • Kevin Chan
    Member since 2019 · 89 posts · 64 votes
    6y
    Looks great

    Originally posted by @Matthew Forrest:

    @Peter Mai

    I took a lot photos, but I don't have access to everything right now. I never really thought about it, but I should do a write-up or something of what I did and post it! Thanks for the idea. Here are a few photos for now. 

    @John A Murray 

    Good idea on separating out the costs! I'll include that in my write up.

    0Reply
  • John A Murray
    Rental Property Investor · Long Beach, CA · Member since 2019 · 145 posts · 49 votes
    6y
    Wow that's a nice looking unit. The ceiling, lighting and interior color really set it off. Thanks!

    Originally posted by @Matthew Forrest:

    @Peter Mai

    I took a lot photos, but I don't have access to everything right now. I never really thought about it, but I should do a write-up or something of what I did and post it! Thanks for the idea. Here are a few photos for now. 

    @John A Murray 

    Good idea on separating out the costs! I'll include that in my write up.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free