All Forum Posts by: Amy Cheng

Hi!

My mother and I are planning to form an equity partnership for a multifamily (tri or quadplex) home in Los Angeles. We are still in the early stages of hammering out the details but will most likely get the ball rolling in the next year (2021). I am currently talking to agents and lenders to get a sense of what we can afford. It will most likely be an owner occupied home with traditional 20% down bank financing though. My mom is providing the down payment and initial repairs costs, if any. I will be doing the rest of work: deal finding, closing, living in one unit, and taking care of PM duties. This will also be my first time buying. 

Does anyone here invest in multifamily in LA/California and can give me some insight into their experience/process/what to watch out for? I know LA is mostly an appreciation market and we may not see typical CoC returns at firs, but has anyone had surprising cashflow returns within the first few years in MFH?

I am also confused about how taxes work in a partnership and how to best structure this between my mother and I. (should we both be on the title, is an LLC necessary for this, etc etc) We will eventually be looking for a CPA and/or attorney who has experience in MFH. Also open to agent and lender recs in the area too.

 I just wanted to reach out to the BP community to get any recommendations and/or advice. PM me if you know someone! I can provide more details if needed as well. 

Thank you!

@Lane Kawaoka

Thanks for the info, I'll check out your article. Helpful to know the risks/cons of brrrr method that people don't usually talk about. It seems more risky for a newbie to attempt without experience, especially out of state. Hopefully one day I'll be able to invest local.

@Edgar Gascon

Yes totally agree that shadowing someone during the process would be highly beneficial! Hoping I'll have that opportunity one day maybe post pandemic. 

And I'll definitely check out any REI groups in my area. Thanks!

@Nicky Gonzalez Hey Nicky, congrats on starting your first flip! I'd love to hear about your experience with getting started! I sent you a PM. 

Hi BP! My name is Amy and I'm 24 years old. I am new to the world of REI and am super eager to get started after doing a bunch of research, mostly through BP. I currently live in Los Angeles but am looking to do my first REI venture in Pittsburgh, PA which is my hometown. I currently work in the film/tv industry but really like the idea of supplemental and passive income through real estate. I'm super motivated and willing to put in the work to achieve financial security so that I don't have to rely on the gig economy lol.

My short term goal is to buy my first investment rental property maybe in South Side, Squirrel Hill, Lawrenceville, Mt. Washington, Greenfield, or Highland park, B/C neighborhoods using the BRRRR method.

However, I am not financially at the point where I can purchase a property on my own and an FHA loan wouldn't be an option since I wouldn't be living there. Since I'm also curious about flipping houses, I'm thinking of potentially partnering on a flip with someone who has experience as my very first venture in real estate. I think being involved directly in the process in some way early on would be a great way to learn the ins and outs of flipping/rehabbing rather than hearing and reading about it online. Any input on this would be appreciated as well.

Most importantly, I would love to connect with any local investors, realtors, or flippers to get some insight and/or advice. Hit me up!