All Forum Posts by: Michael Lazzaro

Can you convert a legal 5 unit place down to a 4-unit place? I am struggling to find agents or loan officers who think the 203K is worth it...

Can you get a 203K loan on a property with illegal units to bring them up to code or is it only for SFH?

I think anything that would maybe work out for house hacking in LA is such a dump that you can't get financing. Or if you buy something with an FHA loan you are competing against all of the first time home buyers who this apparently is their time to shine and they have more cash then you and are willing to pay more for emotional reasons, not investment reasons...

Finally sold for the record... Wasn't quick but walked away to fight the good fight. Thanks for all the advice. 

https://www.biggerpockets.com/...

Its more a rental property in Oakland. It has an unpermitted mother in law units, little parking and its in the alley. It would be a .8% property in the bay for the right person, and probably a buy and hold type situation, or good for an owner operator for a few years.

What are some strategies for selling a property quickly that has been on the market for a while but you are at the point where you need to dump it? 

Would it be better to try and go for a fouplex and apply for a variance with the city? 

Good to know that it won't go conventional with an ADU.

The fire damage has already been dealt with the current owner never investigated public records, and there are current tenants in the units. But I guess I should double / triple check with the city.

Even though it might be a little bit of a negative cash flow for now the other unit will be my primary residence. The rent I would be asking for initially would be below market unit I could get in and rehab it. I want to use this project more as a learning experience. Like how do I deal with the city and how do I add value to the property. In a perfect world I would find a contractor who is willing to just build the shell and let me work under them to get hours to get my contracting license. 

Thanks for the advice. I probably should ask what you would suggest doing with the property as well.

To take advantage of the CARES act you need to have been affected by COVID 19. Your 401k company will make you sign a form stating such. You are able to pull from the 401K piggy bank as many times as you want in 2020 unless its gotten extended, up to $100k or whatever you have vested. I used this to buy my second property since I already have a 401k loan out. I think in a strong market the 401k loan is better, but right now I would take the money and run. And just try and pay it back within the next 3 years. Seems like a good hack for your money if you think your real estate investment will do better than your 401k.

I just got into contract on a smokin hawt duplex deal in North East LA, literally. There was a fire in that according to permits "burnt less than 10% of the structure." Up the street is million plus dollar houses but I scored this deal for $660k, which half my monthly payment should be paid with one unit rented out with just paint. My plan since I want to learn more about the joys of dealing with city planning is to sell the dream. Aka get approved permits for something that is modern and has as many units as the law will allow. Its zoned LARD2. From my research I should be able to add a second story, ADU, and Jr ADU to convert the duplex into a foe four plex. I want to get plans approved and then hunt for funding to actually build or sell the dream. Poke holes in this plan? What should I watch out for?