All Forum Posts by: Mylen Tansingco

This is my goal too.  Thanks @Brendan Dekora for making this thread specific.  Following!

@Jonathan Barr Yes thanks it is helpful.  Goal is to prepare in advance of the recession but there's always risk.  Do you invest in Vegas?  I'm looking there as a secondary option.  But due to work, my first purchase will need to be in LA.  I'm interested in the midwest.  $45k a door is insane!  

@Matthew Forrest Fascinating.  I can't believe ADUs don't always reappraise for higher value when they seem so valuable to me.  Eye of the beholder.. 

Hi @Jonathan Schwartz! Thanks for the thorough feedback.  Would be cool to continue our conversation. Will DM.

@Brendan Dekora - Cool to know the FHA could fund the ADU conversion. From this thread it was interesting to learn that Airbnb doesn't allow ADUs...sharing in case that was your plan too. Best wishes on your Real Estate journey!

Hi @Nabil Suleiman!  Thank you for your fast and valuable feedback.  This community is incredible.  Answering your questions below:

is the 3.5% down so you can reserve the remainder of your money to do rehab work and add an ADU? aka will you have an average of another 80,000 and above on the lower end to do some work?   Yes, exactly.  I have some cash for a downpayment but not extensive construction.

Love the strategy of forcing appreciation to get rid of the PMI. I have worked with a lot of people to achieve that goal.  Yay, I feel validated.  How do you work with them?

Are you fully self employed? If so have you already connected with a lender to check out your potential $ approval ?  Kind of.  One business is an LLC single member structured S Corp.  The other is a C Corp with employees.  And I teach on the side.  Working with a lender will be my next step after all this research.
Thank you again!

Hi Everyone!  Here's the research I gathered during quarantine to potentially apply to an investment property.  Have you done something similar?  Is there anything else to look out for?   Is this strategy incorrect?  It'll be my first investment property.  I am very new to this.  But excited to start!

Objective: Purchase a duplex in Los Angeles/Greater LA. Property ideally has room for additional ADU build.

Lifestyle check: I plan to live on the property and rent out the other units. Ideally place the new ADU on airbnb.

Step 1: Apply for the FHA Loan for 3.5% down.

Step 2: Get MCC Tax Credit in place before closing. 

Step 3: Do light remodels to increase property value. Add an ADU to turn duplex into a triplex.

Step 4: Reappraise property.

Step 5: Ideally property value has increased due to additional ADU, remodeling and appreciation (considering it's LA).

Step 6: Turn FHA into a conventional loan in order to get 20% in home equity and get rid of the PMI.

Step 7: Continue to live in one unit, rent out another, airbnb the new ADU.

Other notes:

-I own 1 business that is WFM so I plan to do a lot of tax write offs on the property.

-If a separate property is under my husbands name (not mine), am I still able to apply for an FHA loan?

-I'm also finding it incredibly difficult to find a multifamily unit in LA that provides at least a 10% cash-on-cash return.  Should I stop trying to find this in LA and stick to the above strategy?

Thanks for your feedback!