6th flip in Los Angeles

6th flip in Los Angeles

Specialist · Los Angeles, CA · Member since 2016 · 165 posts · 88 votes

Hey BP, I just wanted to share my most recent flip. This was in Los Angeles. This is my 6th flip and I haven't had a chance to share every single one but I'm pretty proud of my accomplishments in the last 2 years since I started flipping. I got a lot of negative feedback at first from people telling me it's a bad idea, it's too risky, local seasoned agents telling me I'm too late to the game and you can't do any investing in Los Angeles with $0 money. Well, 2 years later here I am. I started with $0 out of pocket, I've completed my 6th flip, I just purchased my 7th one last week and have 3 other ones in my pipeline, I left my job a year ago to go into this full time, and each deal after the first just kept getting better because I kept learning how to make it better. I'm sharing this not to brag, but to show those of you particularly in Los Angeles, that it can be done if you have enough desire. This is not at all to say it was easy because there is nothing easy about this business. With that said here are the details and links to the pics.

Property: 2/1 800 sq ft./5,000 lot

Purchase price: $413k

Rehab: $55k 

Rehab time: 6 weeks

Initial ARV: $580k

Listed: $599k

Appraised: $635k

Sold: $653k

Pics:

Before - https://app.box.com/s/mhqk541iubkj84ibf4pa9x63cdex...

After - https://app.box.com/s/21n6e5igy958bl6wdzagvmciecyr59z7

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San Clemente, CA · Member since 2018 · 9 posts · 4 votes
8y

@Adriel Liwag Great job on this deal man!! Where did you find this deal, MLS, auction?

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  • Huntington Beach, CA · Member since 2018 · 11 posts · 4 votes
    8y

    Can I shadow you?  Follow your work

    ?

  • Investor · Tarzana CA and Houston, TX · Member since 2015 · 326 posts · 130 votes
    8y

    nice work! great flip

  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    8y

    @Adriel Liwag Wow, thanks for sharing this.  Awesome work and pictures look great.  But I'm sure everyone wants to know.  How'd you finance this thing?!

  • Specialist · Los Angeles, CA · Member since 2016 · 165 posts · 88 votes
    8y

    @Alex Bekeza Thanks Alex, I've always had a partner and we've used HML on all our deals.

  • Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
    8y

    Looks great and solid numbers!

  • Cleveland, OH · Member since 2018 · 133 posts · 59 votes
    8y
    There is hope yet. What advice would you give for someone looking to house hack? Are there opportunities there?
  • Specialist · Los Angeles, CA · Member since 2016 · 165 posts · 88 votes
    8y

    Thanks @Brian Garrett

    @Alex Price there is house hacking opportunity for sure but the cash flow really wouldn't be that great and neither are the tenant laws. This is not to say it can't be done and be somewhat profitable. 

  • Real Estate Agent · West Hills, CA · Member since 2016 · 43 posts · 26 votes
    8y

    Great Job man!

  • Investor · Roseville, CA · Member since 2016 · 893 posts · 1k+ votes
    8y

    Way to prove them all wrong @Adriel Liwag!  Sounds like you are hitting your stride and not looking back, well done!  Your finishes look amazing!  

    Any thoughts on why you were so far off on the original ARV or did you just end up calling an audible and going top quality finishes once you got started? Either way, great job!

    Cheers!

  • Specialist · Los Angeles, CA · Member since 2016 · 165 posts · 88 votes
    8y

    @Jon Crosby thanks for the support! My initial ARVs were conservative numbers based on solid sold comps. I don't want to over price my ARV and set high hopes and it also keeps my over all numbers conservative and easier or more realistic to sell to my passive investors. My favorite part in the process is being able to deseign and renovate a home to the highest quality possible at the least dollar amount possible.

  • Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    8y

    Not sure why the seasoned investors would say that as LA still has the highest average flip profit nationally at 169k per. Any certain areas you are focusing on or just anything anywhere in LA? 

  • Member since 2018 · 1 post · 0 votes
    8y

    @adriel Nice Job man!  Excellent work.  Surprised your rehab was 55K based on the pictures.  Keep up the good work. Jay

  • Specialist · Los Angeles, CA · Member since 2016 · 165 posts · 88 votes
    8y

    @Matt R. these are seasoned retail agents who don't understand investing in general at all, they are focused on the retail sales. That's the problem with most agents, they either don't do any actual investing theirselves and don't understand calculating rehab, holding cost etc. Ofcourse not all are like that but there are very few agent that are knowledgable on the investing side. As far as areas go, I do flips anywhere but mainly focusing on the hot up and coming areas around DTLA. 

    @Jay Senaratna Thanks!

  • Financial Advisor · San Diego, CA · Member since 2015 · 51 posts · 37 votes
    8y

    Awesome job Adriel! I love seeing people blowing their original ARV estimate out of the water. We're seeing that a lot lately around LA. Keep killing it!

  • Specialist · Los Angeles, CA · Member since 2016 · 165 posts · 88 votes
    8y

    Thanks @Matt Schuberg! 

  • Cambridge, MA · Member since 2017 · 268 posts · 247 votes
    8y

    First, it is incredible you were able to do so much in 55k in LA. Second it is amazing that this is going for 650k. i.e. 2/1 800 sq ft!!  This is a really tiny house, smaller than apartments  and I am not buying the garage conversion. Also, the quality of the kitchen seems high grade compared with the neighborhood. I am glad it worked out so well.

    Congrats. I think if you can make it in LA, you can make it everywhere and anywhere lol

  • Specialist · Los Angeles, CA · Member since 2016 · 165 posts · 88 votes
    8y

    @Vinay H. Thanks!

    It's crazy because quite frankly I wouldn't buy the houses I flip myself at those price points. lol If I had that kind of money to spend on my home, I'd be buying something bigger and away from the city. But that's just me and I have a family to raise. 

  • Member since 2018 · 3 posts · 0 votes
    8y

    Adriel,

    This is great! thanks for sharing!  Great inspiration. 

  • Flipper/Rehabber · Los Angeles, CA · Member since 2009 · 1k+ posts · 732 votes
    8y

    @Adriel Liwag ,congrats and thanks for sharing. It's good you didn't listen to the naysayers that said it could not be done. L.A is the second largest city and we can see from the MLS/Redfin flips are going on , but it seems rare to see them mentioned on BP unfortunately.

     You did a really nice job on it. Looks very classy. 

  • Specialist · Los Angeles, CA · Member since 2016 · 165 posts · 88 votes
    8y

    @Joseph M. thanks! ya, there really aren't a lot of local flippers that are on BP.

  • SoCal · Member since 2017 · 30 posts · 12 votes
    8y

    Thanks for sharing your success story! I am a newbie in the LA/OC area and looking to get into flipping in the area with little capital to start. I have also gotten a lot of negative feedback from the people around me which is so discouraging. It's great to see someone that started in a similar position become so successful!

  • Flipper/Rehabber · Los Angeles, CA · Member since 2009 · 1k+ posts · 732 votes
    8y
    Originally posted by @Vinay H.:

    First, it is incredible you were able to do so much in 55k in LA. Second it is amazing that this is going for 650k. i.e. 2/1 800 sq ft!!  This is a really tiny house, smaller than apartments  and I am not buying the garage conversion. Also, the quality of the kitchen seems high grade compared with the neighborhood. I am glad it worked out so well.

    Congrats. I think if you can make it in LA, you can make it everywhere and anywhere lol

     $650,000 is a lot but it can look 'cheap' when looking at some other parts of L.A where homes the same size are over $1 million. For example here is a property closer to the beach...but not at the beach which is $1.325 million asking price.  Probably doesn't look nice inside since there are no interior pictures too. 

    https://www.redfin.com/CA/Culver-City/3932-Glencoe...

    There has been a ton of  development in Downtown L.A and the surrounding area and traffic has gotten very bad ..more people want to live near work... so that has helped to to increase the prices. 

    The areas of L.A near the beach also have seen a ton of tech companies moving in paying big salaries and stock options so this has helped to push prices up even more.

  • Investor · Culver City, CA · Member since 2017 · 76 posts · 40 votes
    8y

    Thanks for sharing this. I am really impressed with the improvements to the house for only $55k. Great work.

  • San Clemente, CA · Member since 2018 · 9 posts · 4 votes
    8y

    @Adriel Liwag Great job on this deal man!! Where did you find this deal, MLS, auction?

  • Specialist · Los Angeles, CA · Member since 2016 · 165 posts · 88 votes
    8y

    @Jerry Murphy thanks!

    @drew 

    @Drew Slater thanks! Most of my off market deals are brought to me by my network of different people but I'm also doing my own campaign. 

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