Small multi-family (2-4 units) buy & hold investment in Los Angeles.
Purchase price: $490,000
Cash invested: $40,000
Property was a legal duplex & we converted a laundry area to a studio unit that I now use for AirBnB. Mortgage is roughly $3,300. Gross rents bring in $4,680. Since we are living in the property cash flow currently is roughly 400 dollars BUT we are living for free once I buy the next property cash flow will be very good.
What made you interested in investing in this type of deal?
I could house hack it and it’s an area that is surrounded by million dollars properties.
How did you find this deal and how did you negotiate it?
MLS w/my agent and a mentor of mine.
How did you finance this deal?
Traditional bank via an FHA loan.
How did you add value to the deal?
Cosmetic maintenance along with the sewer line, windows, exterior paint and landscaping.
What was the outcome?
Currently being rented.
Lessons learned? Challenges?
Expect things to come up because they will. Also know your market ($/sqft) and what market rent for the property is.
I was wondering what part of LA were you able to find such a deal?
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