Scottsdale, AZ · Member since 2016 · 62 posts · 8 votes
Hey guys, I'm considering putting in an offer for a duplex in South LA with 2 2br/1bath units; it has an ARV of over $350k, and with rehab it will cost me under $300k. Each unit can rent out for about 1200/mo... But I'm considering moving into one of the units.
Is this a good deal or should I look further for a better bargain? Are there any big pitfalls I may be missing here? Thanks for your help everyone!
(If you need me to be more specific just let me know)
Real Estate Agent · Los Angeles, CA · Member since 2015 · 43 posts · 15 votes
10y
That sounds like a great idea and as you live in it, you will be able to fix as you go.
I live near the South LA area, so if you would like my opinion on the ARV with different levels of fixings, let me know. I am a Realtor and an investor.
Real Estate Agent · Los Angeles, CA · Member since 2015 · 43 posts · 15 votes
10y
That sounds like a great idea and as you live in it, you will be able to fix as you go.
I live near the South LA area, so if you would like my opinion on the ARV with different levels of fixings, let me know. I am a Realtor and an investor.
That sounds like a great idea and as you live in it, you will be able to fix as you go.
I live near the South LA area, so if you would like my opinion on the ARV with different levels of fixings, let me know. I am a Realtor and an investor.
Shannon, the catch is that if my grandfather wont cosign I might have to borrow private money at 12% due in 12 months. So if I put down 30k i still have to borrow 260 @ 12% which comes out to an extra $28600 on top of the 290k I need to buy and rehab it. IF I can flip it in 6 months for 350 is it even worth it? Or should i refinance after the period of seasoning into a conventional mortgage? What do you think?
Rental Property Investor · Downey, CA · Member since 2016 · 29 posts · 11 votes
10y
House hacking is a good way to go if the numbers make sense.
The question of that if they are in rent control is important. Just more rules to follow.
Also, are the two units metered separately? I have a duplex that the tenants pay for all their respective utilities since they have their own meters, so I don't have to worry about those extra expenses.
In addition, you have to be cautious with inherited tenants. I was lucky with one set of tenants, but the other tenant was a pain in the behind! The first few months was ok dealing with her, but soon she became like a tenant from hell. Long story short , I had to evict her. Cost me four months in loss of rent plus costs of repairs to make it rentable again. Sometimes landlords don't perform through background and credit checks before they decide to rent to them, so the next owner gets stuck with the problem.
Perform your due diligence.
House hacking is a good way to go if the numbers make sense.
The question of that if they are in rent control is important. Just more rules to follow.
Also, are the two units metered separately? I have a duplex that the tenants pay for all their respective utilities since they have their own meters, so I don't have to worry about those extra expenses.
In addition, you have to be cautious with inherited tenants. I was lucky with one set of tenants, but the other tenant was a pain in the behind! The first few months was ok dealing with her, but soon she became like a tenant from hell. Long story short , I had to evict her. Cost me four months in loss of rent plus costs of repairs to make it rentable again. Sometimes landlords don't perform through background and credit checks before they decide to rent to them, so the next owner gets stuck with the problem.
Perform your due diligence.
Jesus, how does it work generally if they are on a month to month lease? And it's not rent controlled by the way, that much I know.
Rental Property Investor · Downey, CA · Member since 2016 · 29 posts · 11 votes
10y
Generally, in Los Angeles, in non rent control areas, on month-to-month leases, you can give a 30 day notice to get them to move out.
How simple the process is depends on the tenant. They can make it easy and move out, or they can make the situation really tough. If they opt not to pay their rent, serve them a 3 day notice to pay or quit. If they don't perform, it's important to give the proper notices to avoid delaying the eviction process.