All Forum Posts by: Peter Sinclair

 For the back patio maybe just do a simple gravel patio or decomposed granite with a paver border. Its fairly inexpensive and can be done yourself.

I was looking for pictures of the landscaping we did but I realize I deleted them from my phone. The only other ones I have are still on memory card from my camera. Before tenants moved in we took some “professional” pictures in case we decide to sale this property in the near future, once I get around to editing those images I’ll post them here. 

Interesting move, from California to China. My wife is Chinese. 

 This has some potential (if it can be delivered vacant).

-https://www.redfin.com/CA/Los-Angeles/1952-City-View-Ave-90033/home/6938332

Boyle Heights is being bought up like crazy... We got really lucky when we found our first duplex; we found it by following some “OPEN HOUSE” signs. I would suggest looking at East LA (zip code 90063), its in a non-incorporated area of LA, meaning no rent control, and its a bit easier to find housing. Also, I’m noticing South LA, and Inglewood on the rise. Prices are lower there, I believe in the $300ks, and rents in Inglewood are going up. 

Yeah, it crazy to see how inexpensive housing is in other parts of the country! LA down payments can fully payoff multiple properties. 

I grew in the LA area, went from Inglewood to Pasadena and then to Altadena. I remember when everything to the east of the 5 was East LA and when Highland Park and El Serrano were overunned with gangs! And If you haven’t been to Silverlake lately.. it has completely changed! 

Omar, I sure you’ll come across a deal sooner or later! Till then feel free to hit me up and hopefully I can share some advice from the mistakes we made, so you wont have to. 

Had the same issue. I ended up just buying a glass door. Figured it would cost more to fix water damage than to replace a shower door.

 Thanks for the suggestions! 

Water wise landscaping was done. We did a small area of turf, used a lot of decomposed granite, and put drought tolerant plants in giant pots with a drip irrigation. We also used crushed stones for the side areas of the house. I really think we overpaid but we went ahead and did a bit extra Incase we decide to sale the house later next year. 

For the AC system we installed a multi-zone ductless. So plumbing would be difficult but electrical not so bad. I was thinking of saving costs on the next renovation by doing wall AC units (essentially bigger window ACs) 

Here’s a duplex my wife and I acquired just over a year ago in the Los Angeles area. 

Before (downstairs):

https://www.youtube.com/watch?v=Y95SmuZaZHg

Before (upstairs)

https://www.youtube.com/watch?v=L2lwgHm8A2Q

After (upstairs & downstairs) 

https://www.youtube.com/watch?v=SIsky7tk6j4

The video only shows one unit of the duplex.. but keep in mind both units are mirror images of each other. 

Purchase Price: $475,000

Renovation costs: $80,000

Rent: $2200 each unit (2bd/1.5ba)

Some things we learned along the way:

1) Nothing is more expensive than a cheap paint job. We bought cheap paint from homedepot and it took us so many layers to get rid of the horrible blue and orange walls (see video). In our last renovation we bought Behr Marque (most expensive). Cheap paint took us 8 days to finish painting, expensive paint took us 1.5 days. Cheap paint costs us around $700, whereas expensive paint only cost us $250. 

2) If you pay for tenants water bill, make sure you install water saving devices. Low flow toilets are so worth it. We now put Niagra 0.8 gal/flush in all our bathrooms, they use half the amount of water but have great flush power. 

3) Pick materials that are easy to clean and durable. For example, in our first unit we used a laminate floor that was very textured. This allows things to collect in the grooves and made it more difficult to clean. Our second unit we bought laminate that was smoother. Cleaning and maintenance was sooo much easier for us as well as the tenant! 

I grew up in Altadena. 

What’s the purchase price, the amount you’re investing in the renovation/rehab, and expected sale price when you’re done?

Hello Eric:

The plan is to pay off the house ASAP, and not have any debt. This helps us avoid the amortization costs, so we can really capitalize on equity that will be built over time. Essentially, we invested $270k into this property and will (hopefully) see a profit of $19,200 for the year. That’s a 7% return on the investment, comparable to conservative stock trading. 

The new value of the duplex is around $600k. 

Can’t wait to see it finished.  

 Hi Megan,

To find something that is cash flowing is very difficult, especially if you’re on a budget. The rent control isn’t that bad of thing, considering your not purchasing a property that already has tenants. We try to find places that are empty, so that we can renovate to the amount of rent we need to make a profit. Sometimes, you can ask as a closing condition that all units be delivered vacant. 

For example, we aim to collect rent that is double what are mortgage would be. If you renovate an apartment that looks fairly modern with inexpensive materials you should be able to manage decent rental income. For example, 3/2 houses rent for about $2200-$2800 depending on parking, amenities, and how updated it is. 

It takes us about 2-3 weeks to find tenants. We use the cozy app for applications and rental payments. 

 Thanks!

East LA doesn’t have rent control. We do have another duplex in a rent controlled area of LA but because it was built after 78’ it isn’t under rent control but does require an annual inspection from the LA city housing department. 

As downtown LA continues to build expensive luxury apartments it will push out those how cant afford it into the surrounding areas such as Boyle Heights, South Central LA, and Inglewood. In turn, those people will be forced out into areas where homes are even cheaper. 

I believe LA costs way too much, that’s why its rare. You need so much working capital to get an affordable mortgage.. after getting into this real estate game I realized it takes ALOT of money to make money lol