All Forum Posts by: Ryan Rodriguez

@Alex Deacon Thanks!

@Brett Goldsmith Thanks!

@Greg Hamer Thanks, and not a problem! Should i send it via email?

BiggerPockets Family, 

I want to share with you all a quadplex deal I closed back earlier this year in East Los Angeles.

About the Deal:

Property was listed on the MLS for $615k. Each Unit was 700Sqft with 1 bed/bath. The property also had a detached 4-car garage and a laundry room. I initially put in a offer for $630k, but was outbid by another all cash buyer and placed as back-up offer. A week later, the first offer fell through and they accepted my offer! When I first visited the property, I can tell the owner had neglected to keep the property updated and let the tenants run things. The owner was 80 years-old and had the property all paid off(dealing with a very motivated seller). All units were rented well below market rent and I realized this would be a great value-add opportunity. I ended up negotiation the purchase price to $595,000.

The next day, I went knocking on each of the tenants door notifying them I was the new owner and giving them a 60-day notice for an increase in rent. I ended up having one tenant leave one month at a time. This was great for me since it allowed to renovate each unit one at a time without making me pay the entire mortgage payment each month. Overall, I spent about $40k in renovations and have brought all units to market rent. All the tenants now living at the property have been screened by me and are absolutely wonderful. I am now collecting $5k in rents per month ($1350,$1350,$1100,$1200). Currently cash-flowing $1,645 a month with a 20% down payment. My cash-on-cash return is 11.2% (which I believe is great in the LA area). I hope this deal show folks that it is possible to invest LA. I bought this property at 23 years-old working as a full-time financial analyst in Santa Monica. I also have my real estate license. Please reach out to discuss more!

Please see below the property analysis:  

@Tim Ryan Thanks for the advice. The units do have have tenants except for one. The one unit that is vacant has the gas meter off because its been vacant for a year while the owner renovated it. And you are right... NEVER do rent control. The property I'm interested is in East LA (outside of LA rent control).  

Hi Everyone,

I am a new REI and am currently in the process of purchasing my first investment property in the city of Los Angeles. The property specs is a 4-unit and was built in 1930. On site of the property, I can visibly see 4 separate gas and electric meters and 4 individual units. However, looking at title record (i use title365.com), the property is listed as 3 units. I am worried the owner has made some illegal additions to the property and therefore have made a subject to clause in my offer saying the owner must show me proof that it is a legal 4 unit. I would like to know what the BP community thoughts might be about my situation. Thanks! Write your post