All Forum Posts by: Sergio Avina

@Arpan Patel, Hello Arpan... I'm seriously considering investing in Chicago. What areas in Chicago would you recommend investing using the "buy and hold" model or "flipping"? I have family in Berwyn, Cicero and Downtown. Do you recommend in vesting in Berwyn /Cicero?  Thank you for your input.

Kiersten Vance i appreciate your feedback. I've come to discover that you're absolutely correct about the average cost for a new house. Per a GC I spoke to, the average cost for a build in the area would be $320/sq ft. With this in mind I'm seeking to go the MF route. Thank you for taking the time to opine !

Lee Ripma the large property where I'm considering adding a new house in the back is in East Whittier -- desirable area. The MF is in City Terrace, an up-and-coming area. Thank you for the feedback. I'm leaning in your direction, particularly because i have zero experience with a new build.

Brendon Woirhaye I appreciate the advise and the local meeting times/location. This provides tons of help. I'm still looking. Thank you!!

Hi Lee Ripma , the property near downtown is not in the city of LA ( neither is the second). And, yes, to your other question re needing city permits for sewer line, etc. I'm clueless about the average cost of a new build, so I plan to call on a GC who's a friend of a friend to help me with average cost.

@Manolo: I'm not planning to tear down the existing structure. The existing house will remain on the property. I'd only add one new house on the lot.

Looking to purchase my first MFR, but can't decide whether to turn what seems like a good deal (SFR) into a duplex by building a new house in the back or purchase a MFR, in Los Angeles. What do you think ?

Here's the scoop. I've made offers on two different properties... two examples below. I'd need to live in one of the homes and rent the other/s.  What's the best method of comparing the two examples?

SFR-

Price: $500k. 4 bed, 3 bath (2k sq ft). Could use a little TLC, which will cost about $25k.

Lot size is nearly 15k sq ft. Zoning will only allow the build of one house in the back yard.  

Location: middle income neighborhood with rentals in high demand & a university 3 miles away. East of Downtown LA, near Orange County.

My plan is to purchase at 3.5% down (FHA) & within 2-4 months, take out a second, as well as use some private lender money to build. I don't know the average cost (per sq ft) for a new build in the area -- looking into this now. My realtor estimated $145k for a house with about 1,600 sq ft and a two car garage.

MFR-

Price: $675k.  2 separate buildings, one with 3+2, a second with 2+1, and a third studio. All in nearly move-in ready condition. They may need about $10k in minor upgrades. 

Location: middle income neighborhood near a university, 12 minutes to Downtown LA. 

As an inexperienced buyer/investor I don't know how to best compare/analyze the deals against each other. I've listened to about one third of the BP podcasts, which have been very helpful, but still don't know the way to go. What advise can you offer? Any advise is much appreciated. 

BP follower...

Thanks!

Manolo, Eric, Syed, Brendon: Thank you for your feedback! My apology for the late reply. You all provided beneficial advise, which I greatly appreciate. I'm between two properties - made offers on both. One is a SFR, the second is a MFR. The goal for the SFR is to build another unit in the back (15,000 sq ft lot), which is permitted, according to local code. The MFR is not in my local neighborhood, yet only 30-45 mins away (depending on traffic) and walking distance to a university (USULA), and near Downtown LA. Still doing due diligence on both.

Brendon: appreciate the advise. I agree that good deals exist in our local area -- just need to look.  Matter of fact, i recently found a duplex near Rosehills, which i'm also exploring. Let me know if you ever look for local partners.

Humbly... thank you, all !

Hello BP Community:

This is my first post on BP.  I humbly appreciate you reading the below question. 

Seeking expert advise on how to best start REI. I live in Los Angeles County (Whittier) and am interested in investing in SFR or MFR in the local area or Chicago (Berwick/Cicero area). Open to all possibilities (house hacking, rehab, etc). This month (Feb '17) I was pre-qualified for $800k (FHA 3.5% down), either SFR or MFR (based on W2 job). For the past 45 days I've seen 20+ properties with my realtor (and on my own). Currently rent a townhouse in Whittier. I'm inches away from pulling the trigger on a purchase. Some questions I self debate include (among others):

a) Should I purchase locally or out-of-state? Local market is nearly as high as '08 levels. 

b) Will i miss the appreciation opportunity in out-of-state deals (Chicago) by purchasing locally?

If you were me how would you begin in the real estate market?

Thank you, in advance, for your responses!