All Forum Posts by: Nick Hedberg

@Manolo D. Cheating? Absolutely! 

You definitely can't get 2% in LA, especially in this market. However if someone is looking to house hack this is a route worth investigating. Or if someone already owns their current residence and is looking to try out investing in LA, this would be a fantastic path to try it. 

Potential 2% and the homeowner get's to improve their properties value? It sounds like a win/win to me.

@Andy Brohard - Around 600 SF sounds right for an enlarged garage. My goal is to buy a modular/prefab home or a tiny house and add it as a 2nd unit in the rear. The prefab houses are suppose to have a cost advantage. It cost you roughly $166 per SF to convert a property but it just shows how expensive LA is with all of the fees, etc. If you had to do it again, what price could you do it for?

What a great idea! I’m pumped!

@Andy Brohard  - Thanks for the info. If you already own the home $100k for $2000 in rent is the 2% rule in LA, which is insane. Many people are happy with .65% in LA.

What's the total square footage?

Also check out myhousedeals.com. Lots of bad deals but they have the occasional good deal worth checking out.

Your property taxes can't double unless their is a change of ownership. Research Proposition 13 limits tax increases to 2% per year. I would call the LA Treasurer and Tax collector.

@Matt R. - I like it Matt, thanks for the numbers. Definitely some potential in Kern. My goal is to buy a weekend/retirement house their one day.

@Ryan D.- Thanks for the suggestions, I'll check those areas out.

@Max Gradowitz - I love Kern County for backpacking, I'll definitely start exploring the cash possibilities up there.

@Aaron K. - Absolutely! I'm a huge believer in value adds. Any place specifically in the IE?

@Christy Gaines - I understand, I had a rental in Virginia and have a 4 unit in Missouri. The COC ROI is very different then California! I'll also check out Palmdale/Lancaster.

Thanks everyone for the great suggestions! 

@Austin N. - I understand. Having access to off market deals will be helpful. In my experience most of them cash deals where the property needs a lot of work which means won't qualify for FHA. Certainly not all, but the majority unless your in high end areas like Beverly Hills.

I would also look into the FHA 203(k) loan: https://www.hud.gov/program_offices/housing/sfh/20...

It will give you a lot more flexibility in the properties you can purchase. Also it might not be a bad idea to get qualified with Movement Mortgage. They do full underwriting upfront where you can close in 14 days with a conventional loan instead of 30 days. I'm not sure how an FHA loan impacts their time frames, but let me know if you need a referral. I have a great lender with Movement.

As others mentioned, it depends on what you define as 'investing'. If you are a cash buyer and are looking for appreciation, then Westchester has some great potential. If you are using using a high amount of leverage, Westchester probably isn't the best place for you. 

If you are looking to flip their is some potential. Let us know what type of investing you plan to do and we can help.

Hey Everyone,

I'm looking for recommendations withing 1-2 hours of LA of places that don't have rent control and have decent cash flow options. San Bernadino, Oxnard, etc. SFR or multis.

Thanks for your input!