All Forum Posts by: Jason Meissner

Hello Yang,

I like this one for a house hack or mixed opportunity. You could live in an amazing city, there are big hospitals around if you wanted to go for nurses. 2 units can be upgraded immediately (delivered vacant) and rented out so you could "add value". There are several plans you could use to exploit this property. 

The rent estimator says $4700 for the big house and $2500 for each of the 2 x 1 units and $1950 for the 1 x 1. None of those numbers are overstated. It is so expensive to rent here. I would be hoping to make that house into 3 separate units. If you could split the house even once into a duplex you could go to a commercial loan with 6 total units. 

It is in a B area of an AMAZING area. The property appreciation in these zip codes is absolutely insane. This house below sold in 1997 for $197,000. I think that is a 600%+ increase over 27 years to its current price of $1,450,000.

https://www.zillow.com/homedetails/350-E-Orange-Grove-Blvd-P...

Hey Natasha

Double check the restrictions on changing historic homes. The historic status is often a blocker to easy changes and adding value. 

Sometimes it is a very easy work around but you should know what you can and can’t do to the property. Your future buyers will throw it in your face at the sale too, So you want to find out. 

Good luck!!

I have been lucky enough to have a career flipping and remodeling homes. The truth is there is no secret sauce. In fact I think the more secret sauce there is the more scary everything is. Ask every single awful question you can imagine. Pay for inspections. Wherever you stand looking at your property, in a room our outside, point your finger in any direction, everything has a price tag on it. KNOW WHAT ALL THAT COSTS ALL THE WAY DOWN TO THE DIRT ON THE WINDOWS. No you don't have to know the number but you do have to know that it is on someone's budget that is already in your budget or it is coming out of your pocket in the end.

If you DON'T know how much every single thing costs from nails to AC to inspections that is fine. However you actually do need to know how it is being paid for, that is when you can make an offer. You must know how everything is paid for. The BUDGET is GOD. If the parts of your budget are true and not made of assumptions you can easily proceed. The only lies you are allowed to tell in a budget are those that are too expensive. Never estimate low! Never think you can do it yourself. Ask every single awful question you can imagine to your contractors. Pay for inspections. 

Be on guard if you find a deal you really want to do. We have to be soulless machines when looking at opportunities. Let comfort guide you. Do you have solid sold numbers? What about the crack in the patio you are standing on? Everything you leave behind comes out of your pocket. 

I'm not rich enough either, but I run these jobs as well as the budgets and the money. A job like this around $1.5 million gross spending is not high or low. That is a normal flipping budget in this area.  This one looks straight forward. A tenant is always a blocker only because of time. This one looks good because it looks really easy to add sqft. It is so ugly you could add from front or back and it wouldn't even matter. Look at the homes on both sides.

BRRR people you could add units. The lot is big enough It is right next to a really nice walk around area and hiking trails forever. VERY high rent in this Pasadena area. I mean why not go 5 units and get the commercial loan.

If you wanted to flip it simply add sqft until your budget is met. Sell it with the guest house/ADU on tap. That is huge here now. Rents are so high people love buying homes with a guest house, work from home, grandparents.... The examples below I think are mostly not remodeled with no guest house to show the price point sells all day here.

There is no secret sauce needed other than a really good budget, really good construction and really good design. The only time there is pain is when you TRY to make things work. 

https://www.zillow.com/homedetails/1377-Sonoma-Dr-Altadena-C...

https://www.zillow.com/homedetails/2182-Grand-Oaks-Ave-Altad...

https://www.zillow.com/homedetails/1845-Coolidge-Ave-Altaden...

https://www.zillow.com/homedetails/1500-Carroll-Dr-Altadena-...

https://www.zillow.com/homedetails/1170-Morada-Pl-Altadena-C...

The location is great!

https://www.zillow.com/homedetails/1409-N-Hill-Ave-Pasadena-...

If vacant this could work. It is pretty easy to add sqft in Pasadena. This could be done in 6 months. I'll go drive by and see if it's empty.

I would bet this one is going to make money for anyone who knows what they are doing.

https://www.zillow.com/homedetails/1409-N-Hill-Ave-Pasadena-...

Daniel,

I think there are always flips to find and partner on in this area. Everyone I worked with is still going at it as hard as ever. In this area, where the values are so high per sqft at sale, there are always deals to put together. With your budget in this area you can make for sure $150,000 every 6 months in and out with a good team. Stay in towns only where permits flow at least somewhat on time. 

You can't fool around in LA but the formula is easy. Get the BEST realtor in the area of your home, preferably a realtor who is also investing in remodeling homes. I am all about selling on time and on budget. A realtor that can pack your house on the day it hits the market will get you offers and the best price. This realtors long history of dominance in an area also brings pricing confidence when you are setting up your budgets on day one. if you are doing more than 1 per year and giving them close to full commission on the purchase and sale, you can really create a great team member who is winning every time you are. Write them into your budget on day one and you are starting out with a Heavy Hitter on your team interested in your success. 

Yes, agreed.

I consider BRRR method people landlords and the long haul has ups and downs. 80% or even 70% LTV in the right deal works. In fact that is the deal since the beginning. I don't see that as an obstacle either.