All Forum Posts by: Alvin Uy

@Tyler Weaver

Theres also HELOCS for those who own existing properties.

@Jesse Barahona

There’s also Lines of Credit if you have other properties. Im in the process of pulling HELOCS on all my properties now while the current values are high. Going to use the line of credit for my next RE purchases and rehabs... then refi and pay HELOCS back.

@Kamal Andrawis

I think the average rate would be $150/sqft for a CG to build the structure.... Not including permit, plans, exterior concrete, fence, landscape, etc.

Im working on numbers on a potential project right now to build additional 2 units with 900sqft each. Its estimated at 275k all materials and labor for the structures.

So yours could be around $550k give or take... unless you find a CG that can do it for less than $150/sqft. Plus plans, permit separate address if theres none, concrete, fence, tankless, windows materials.

@Thuy Pham-Satrappe

This depends on area and location. For multi units, Invest in areas that cashflow first with good appreciation potential.

In my area (in Los Angeles), properties appreciated like crazy the last few years... Rents have gone up too, except when your property is under “Rent Control” (Multi-Family) where rents can only go up to 3% per year on existing tenants. So unless you buy MFs that is vacant at purchase, cashflow can only work with a big down-payment.

@Rigo V.

is it even possible wholesale something thats already on the MLS? How would you do that?

@Maxwell Milholland

My wife is a Realtor ( Los Angeles). When we buy for ourselves,  we always disclose that she is a realtor. Sometimes we even leverage it during multiple offers by waiving or lowering the buyers commission fee... which works like a charm 99% of the time so far.

It depends...  I use it as an acquisition strategy.    In my area (Los Angeles), its is a very very competitive landscape.  Good deals are hard to come by so having the “best offer” comes to play.  Often times, buyers with “All Cash” offers are favored over buyers with loans.  The ability to “remove all contingencies” ....especially “loan contingencies” and the ability to close with 15 days (because financing is not an issue ) offers lesser risk for the seller to fall out of escrow.   If you have “all cash”, you can eliminate 90% of your competitors (assuming of course you’re not a low-baller).  You can always refinance it later to cash out after you acquire the property.  

I usually try to see if there are already multiple offers on the table first... before I offer an “all cash” buy.  If there are no offers on a property, Then I always try to go for a loan first.   

That said... Of course, not everyone has millions of $$$ just sitting in there bank accounts (myself included).   Im not at that level yet.... But fortunately for me, I have slowly bought property with traditional loans and have now built up enough equity in those properties.  I found a lender that gave HELOCs on those investment properties which I access when buying “all cash”... I then refi to a conventional loan later after rehab projects are done.   Hope this helps.  

I would say be flexible.... every property type has pros and cons.   Location and market conditions will dictate.  But most importantly figure out what kind of investor you are, your risk tolerance and the demographic you want to rent to.

For me, I personally chose to invest where I know. Im in Los Angeles... where everything is super expensive. I have a mix of SFRs and MFR but prefer SFRs over MFs where Im investing ... due to Rent Control on MFs and the type of tenants I get.

In L.A, cashflowing BRRRR is not easy to pull off and rarity without any money down. That said however, L.A. has incredible appreciation and rents.... so I dont mind dropping 25% downpayment to breakeven or slight negative on cashflow on the first couple of years. One SFR i bought less than 10yrs ago for $415K is now worth $1.5M... and rents easily with a cashflow of $4500. I have a 4plex I bought 4yrs ago that are under Rent Control where I inherited the tenants paying way under market rent finally started cashflowing this year with $2700 because 2 tenants left. I found that my SFRs cashflow way sooner and appreciate faster than my multi due to rent control... and SFRs are more in demand where I invest and the tenants are less of a headache. They even take care of the house better than the tenants in our 4unit who seem to be more high maintenance. My wife and I manage our own properties which helps us understand where we invest. So know your market... and see which works best for you.

I forgot to mention the owner is a distant relative (distantly related to my wife’s side of family).  He’s in debt and having trouble keeping house payment so he thinking of cashing out now while he can.... No money to fix house.  

My wife is a Realtor and offered to list for him.... but after seeing it,  im thinking of buying it from him instead if the numbers work as a rental. 

The condition isnt too bad in main house. Mostly just needs lipstick rehab. Good bones $40-50k tops. 

Basement was converted a decades ago before legal ADUs were a thing...  it has 2 bedrooms, 1 bathroom and kitchenette (not permitted im sure)... but it has 8ft ceiling down there and separate entrance.  Just being used as storage right now for some reason.  

Thinking of offering $750k-800 as is