Updated about 5 years ago on . Most recent reply
Value Add 3-Unit, Long Beach CA
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $630,000
Cash invested: $100,000
Value add 3-unit property in Long Beach, CA. I purchased the property with FHA financing in October of 2020 during covid-19. There is a 3bed/1bath house in the front and a two story duplex in the back with 2bed/1bath upstairs and a 1bed/1bath + 1car garage downstairs. The property needs a full rehab ($100K est.). ARV is $800K-$825K. Once the rehab is complete I plan to refinance into conventional financing and purchase another value-add deal using FHA financing.
What made you interested in investing in this type of deal?
I like the forced appreciation and the ability to hold the property after the rehab is complete.
How did you find this deal and how did you negotiate it?
The property was listed on MLS. It was a trust sale and I was able to negotiate a $100K price reduction and a $25K credit because of the property condition and market timing with covid-19
How did you finance this deal?
I used an owner occupied FHA loan to purchase the property.
How did you add value to the deal?
Rehabbing all units and increasing rents. Replacing roofs and plumbing on both structures.
What was the outcome?
Still in progress...
Lessons learned? Challenges?
Still in progress...
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am a real estate professional and I specialize in this property type in the Los Angeles and Orange County market.
Most Popular Reply
Great find, Cody! While my focus is on Columbus, OH right now, I'm always looking for the right MF househack here in LA. Like you, I have a feeling it will be in LB / San Pedro or Boyle Heights.