Fix / Flip - Hollywood Hills Mansion
Hello everyone,
I own a couple of small multi-family buildings in Florida, though I live in Los Angeles where I make a couple hundred thousand dollars a year in the entertainment industry. I mention my income to show it's high enough to actually consider buying a "starter" home for myself here in LA before I come to my senses and start eyeballing more quads in Florida..
During a misadventure in Las Vegas this week I realized I don't want to be stuck on another LA - Ft. Lauderdale flight to look for more Real Estate. I've spent 12 years in the belly of the beast (Los Angeles) and haven't attended one Real Estate meet-up or met any other investors. Not good!
It's time I realize that LA is my home and I should spend at least 100 hours networking and looking for Real Estate investments before I consider buying another property in Florida or another long distance market.
I did a lot of thinking on the LA market and here's what I came up with..
Buying a multi-family property here is ill-advised for many reasons. Nonexistent cash-flow, rent control, sky high prices to name a few. I came up with an idea which I want to furnish to the Bigger Pockets community for their thoughts..
Get a syndicate together to purchase a mansion in the Hollywood Hills, that needs light-moderate rehab. While rehabbing, the syndicate rents the mansion on AirBNB in addition to renting the home for video shoots, Instagram photo shoots, parties etc..
After the rehab is completed, the house can go back on the market as an exit strategy. Of course I'd live in the mansion to manage the rehab and the property. If someone rents it on AirBNB I can make myself scarce.
If we (the syndicate) picks up the place for 3mil and rents it for $1,000/night on AirBNB (or less for half-day photo shoots etc..) we might be able to make these numbers work!
Your thoughts are appreciated!