Rental Property Investor · Los Angeles, Los Angeles County · Member since 2019 · 3 posts · 0 votes
Excited to finally be on here guys! I've heard so much about BiggerPockets over the years and used to watch the podcast religiously.
Long story short, I just wanted to get some seasoned eyes on a deal I feel pretty good about. Any feedback would be appreciated and if anyone is interested as well or knows anyone who might be interested, please give me a shout or forward it their way.
Love the energy, and yes, seasoned eyes help a ton on your first one. Drop the numbers in here, price, rent, taxes, insurance, and rehab, and we can actually underwrite it. Quick gut check I use: if monthly rent is not at least 1% of the purchase price, cash flow in LA gets tight fast. The tradeoff is LA can win on appreciation while Sacramento usually wins on cash flow, so be clear which game you are playing. I am a broker in Sacramento and manage 100 plus Airbnb properties, happy to take a look. DM me the numbers if you want a second set of eyes. Hope this helps
Love the energy, and yes, seasoned eyes help a ton on your first one. Drop the numbers in here, price, rent, taxes, insurance, and rehab, and we can actually underwrite it. Quick gut check I use: if monthly rent is not at least 1% of the purchase price, cash flow in LA gets tight fast. The tradeoff is LA can win on appreciation while Sacramento usually wins on cash flow, so be clear which game you are playing. I am a broker in Sacramento and manage 100 plus Airbnb properties, happy to take a look. DM me the numbers if you want a second set of eyes. Hope this helps
Appreciate the feedback Noah, this is super helpful. This is the kind of insight I was looking for when I joined. I'll go ahead and shoot you a DM shortly.
Welcome Christopher, and congrats on posting your first deal. You are doing the right thing by getting seasoned eyes on it before you move forward. In Los Angeles, the numbers have to be tight to make sense. If you can, drop the key numbers in here — purchase price, rehab, rent, taxes, insurance, and your exit plan. That is what most experienced investors will look at first to give you real feedback. I work with investors on funding for deals like this in California and other markets, so I will take a look at the link you shared. Wishing you a strong start on this one.
Christopher, post the numbers and you will get real answers. Right now there is no deal to underwrite, just a link. The numbers I need are: purchase price, rehab estimate, ARV from sold comps, and rent.
Here is the check I run on every deal at 236 doors: single-family under $100,000, ARV $180,000 to $265,000, 3 bedrooms or more, Section 8 rent $1,395 to $1,950, and the 1% rule on the all-in. If the rent is $1,500, the all-in needs to be around $150,000. Then I refinance with a DSCR loan at 70 to 80% loan-to-value.
If your deal clears that check, it is worth pursuing. If it does not, pass fast and look at the next one. Deal flow is the bottleneck, so I spend my time on the next deal, not on forcing a thin one to work. What are the numbers on this one?