Los Angeles Investing Idea
Hey everyone,
I am currently involved with a flip in the Beverly Hills area and everything is going great, but I am looking to build my own team for a new real estate venture. As competitive as the Los Angeles market is, I am constantly looking for innovative ideas to generate income through Real Estate and it wasn't till about a month ago where I was actually sold on one of my own ideas. Okay it wasn't my own idea, but it fell into my lap.
Sober Living Homes.
My brother told me about a close friend of his that owns multiple of these types of properties and is making an insane amount of cash flow. Simply put, he bought his first house (4br) on a Conventional loan. Mortgage payments were around $3000, and was charging $950 per tenant(2 tenants per room..$5700), and the fourth room was for the house manager(free rent). After initial expenses (rehab costs, furnishing exp., etc.) and monthly expenses(cable,internet, utilities..) he generates an average cash flow of $1000 while building equity on the property. He currently owns four and self-manages these all while working a full-time job. Anybody else want to be this guy?
Now I understand the various costs not mentioned, as well as the amount of work it would take to get a project like this started. But please tell me if I'm wrong if I'm thinking this is a great way to generate both short and long term profit. And for those wondering, I have a variety of connections within the sober living community, prospective house manager, and general contractors.
Open to any and all thoughts
Thanks,
Matt