All Forum Posts by: Sergio Avina

Good day... pls email me info [email protected]

I'm interested in receiving additional info/ photos. Pls email at [email protected]

Hello Khris, pls add me to  your list.   & let me know if you have other deals in chicago. Thanks!

[email protected]

Hello, i'm interesed in deals like this one. I assume this one is no longer available? 

Sergio

@Lee Ripma: Thank you, for providing a ton of beneficial feedback!  Your analysis has me reconsidering the deal.  There one more bit of info I may have left out -- I'll be house-hacking the first unit with two co-habitants who will each pay $500/room. Perhaps I should get BP Pro to analyze the deal with the analytical tools on here. I'll PM you in a short sec. Thank you very much for taking the time to provide feedback and taking the added step of analyzing it with the BP tool!!

Hi @Susan O.: thank you, for sharing the resources !

Hi @Lee Ripma, thanks for your feedback. It's good to hear the City of LA is making positive move toward expanding housing. This property fell out of escrow a couple of months ago due to loan issues with the potential FHA buyer. However, it had gone through appraisal, which process was completed. I'll have a copy of the appraisal this week. It seems that escrow could close fine with the unpermitted unit -- hoping its not an issue down the line. I'd be willing to make a sacrifice and live in the unpremitted unit for a short while (12-18 months).

Appreciate the explanation of PM rate. 

The City of Commerce is a unique city as it's predominantly made up of industrial/commercial businesses.  There's no rent control.  I hadn't seriously considered airbnb, but i'll definitely consider it. I think it's a good neighborhood for it as its a quiet, private/safe street. 

The down payment will be between 5-10%. 

The value add could be adding a restroom to the 3+1 unit and expanding the converted garage into a 2-bedroom unit as there are two single car garages next to each other. The second garage has been used as storage and it already has drywall. 

Only reno needed are replacing two water heaters, painting one unit, and replacing one window. 

Rents are: 3+1 ($1800) 

2+1 ($1500) 

2+1 ($1500)

1+1 ($1,000) or 2+1 ($1,200)

Hi Walter Roby jr : thanks for the questions/ feedback. The property is a triplex, plus the converted garage. The garage unit makes a fourth rental opportunity, which was not appraised as such as it's not permitted. All three permitted units have separate electric & gas meters, only one water meter. What do you think about the negative cash flow situation. The positive outcome would be that I'd no longer have $1800 in monthly rent.

Hello BP community,

I could use your help on a potential property purchase in Los Angeles. All responses welcome (yes/no response & detailed responses). The property is a triplex with converted garage (unpermitted) into a one bedroom with kitchen and 1 bathroom. I plan on co-habitating one house (3+1) and renting out the rest.  My current rental cost ($1,750/month), own zero properties, wish to stop paying rent, and purchase my first rental property.  Cash-flowing properties in LA are nearly impossible to find.  Do you think this is a good deal in the LA market? It seems like a good deal from the perspective of paying minimal rent ($185 out of pocket rent). 

Accepted price: $700,000 in City of Commerce. Combined Rents: $5,000/month (based on 3.9% int rate). Property mix is 3+1, 2+1, 2+1 & converted garage (1+1).

Monthly Expenses:

• P & I (based on 10% down): $2,958
• HO insurance: $130
• Mortgage insurance: $394
• Property tax: $741
• Vacancy and property management: 5% of rents (managed by me): $290
• Repairs: 1% of purchase price per year: $6,300 ($525/mo)
• Various city expenses: (trash, water, etc) $150

P&I (plus PMI): $4,220

Total expenses/month: $965

Monthly rents of $5000 - $4,220 - $965 = cash flow per month -$185 (this is my rent while co-habitating one house. total rents will come up to $5,700 when I move out). 

What am I missing? Is this a good long term deal? 

I appreciate everyone's feedback!

SA

Hello fellow BP members, I'm a new investor looking to purchase my first multi-unit property in Los Angeles. I've made multiple offers on three and four unit properties over the past four months without any success. As you all know, the LA market is sizzling hot with competition (an understatement!). I came across what could be a great opportunity - a property in probate - however I have zero experience in this area, hence my post. Appreciate the help! Case scenario - Owner has 3 different properties, which she'd like to keep. Probate sale is not published anywhere. An attorney friend of my shared the information with because of the owner's dire need for cash to pay off debt of $270k, and increasing. Owner paid back taxes of over $150k with a hard money loan at over 10% interest. This lender put a lien on the properties (all three) to protect their risk. Owner is now seeking to take out another loan ($100k), using the same lender (at 15%), or me, to pay down climbing debt. The properties are valued at around $1.7 mil. Owner has equity of about $750k. Owner is interested in selling to me with this, condition (or similar), "option to buy back within 5 years" at appraised value at time of sale. Questions: A. How can I purchase one of the properties if she's willing to sell to me? B. Does owner require court approval to sell any property? She's 50% owner and was granted by the court full administrator rights. Other share (50%) was owned by owners sister until she passed a few years ago, at which point the attorney at that time was given a part of the stake by previous co-owner (this is still in question as there was no will documenting this ) C. Is there any other method of helping the owner to reduce her debt/liability while I also make money on a property (create win-win scenario )? D. Any other feedback is welcome. E. What types of "buy back" contract options are in the best interest of both, buyer/seller? Sorry for the long scenario. Sergio