New Potential Investor in Pasadena CA

12 Replies

Hello,

I am a newbie here and find a lot of useful information on this website. I live in Pasadena area in California and it seems that starting out in this immediate market is not the best idea for a new investor. I would imagine it being a bit more profitable and faster to make money on rehabs or flips in the surrounding areas. I have somewhat limited experience in home construction, as very recently I built a home for a personal use. So I have a real expectation of doubling the price and time that the contractor promises to deliver :)

Can anyone share their experiences on starting out in real estate investing in this area? Would appreciate any advice I can get from the community as well as make any new connections.

Haha, pretty unusual to double the price and timeline but, you're off to a good start by having a house built for personal use. I'd point you to spec building or multi families, if you're in the business of rents, not so much cashflow friendly. Welcome and have a great educational inputs.

Welcome!!

There's a great property on the market in Pasadena for $450,000 mixed use with $3,000 current rent. Needs work though. There are deals out there just gotta think outside the box.

MJ

Originally posted by @RD Delgado :

Hey @MJ Barnett, 

I think I've seen that one...does it have a hair salon in the front?

 Yea. It's a good one. My client's wife flew in to see it and she was scared cause it looked like it needed a lot of work. Termite was under $2,000 and the fixes aren't bad at all if you have your own contractor. Rents are low and in high traffic area.

I would split the utilities into two meters and do required updates and open up the bedrooms upstairs to make 2 large bedrooms and baths to be legal and charge higher rent.

MJ

Originally posted by @Manolo D. :

MJ Barnett What does the comp look like? I think someone will find this interesting.

 The best comp was a 2 unit that had 2beds 1 bath and an additional 1/1 that rented roughly the same price and sold $638,000 and was updated.

Changing it back into a house and removing the commercial space as a flip you are still looking at the $600,000 market based on comps of a 3/2 and not having to worry about some of the legal issues with the City for the commercial space which included a handicap ramp being built and a handicap space.