All Forum Posts by: Shiva Bhaskar

I still think value add multifamily offers strong opportunities for those willing to put in the work. I agree that pricing on many deals don't make sense, but there are certainly opportunities out there. 

We've purchased 17 units in Los Angeles thus far in 2021, and each of these deals hits the same sort of return criteria we put in place several years back. Now, the flip side of this is we look at a LOT of deals before finding a few that makes sense. I hear from friends doing this in other markets that the same holds true out of state.  

Marcus, I'll bite for Los Angeles. Our firm buys multifamily here. We are seeing considerable demand for any vacancy (multiple applications, dozens of visits). We operate in what I'd describe as B- to C areas, and the demand for middle class housing, at market rates, is high.

We are on an eviction moratorium through September 30. I will say that the likely eviction backlog is not as bad as I would have anticipated a year ago, as there has been a lot of government help, plus job market improved. I think there will still be quite a few evictions, but not as bad as one might have thought. 

I do think that prices of both single and multifamily are elevated, and a bit of a bump in interest rates will definitely cool things down a bit. The market here, like most of the nation, has been incredibly strong. 

Hi Miho. I'm a local attorney and investor. I think as long as she's not having customers over, would be OK, but you would want to be sure to get more details, and have the appropriate language added to lease. However, if your triplex is rent stabilized, there may be restrictions on what you can add.

My advise is to connect with a landlord tenant attorney, and get some basic advise on what is needed. I have several I work with in our investing, one of whom managed a portfolio of rentals and commercial spaces in LA. If you want to send me a colleague request or message, I am happy to share the contact information with you. 

Jay are things with the crime increase in Portland having an impact on pricing at all? I know it's a trend across the nation, but it seems like Portland has usually been more peaceful than these other cities. Wondering if there is an impact. 

Hey Alex. Never flipped in LA, but we purchased and upgrade multifamily properties here. I have a friend who has done flips. He would either buy in cash / private money or get seller financing, bring on the contractor team, and then sell. There are many steps in between, but he makes a LOT of offers and most don't come through, and he's always ready to close in 10 days. Only go after properties that need considerable work. 

I am an investor in LA. I don't know your buidling, but you're protected by LA City rent control most likely. I will say that if you have interest in moving, you can probably get paid by your landlord. Tell them you're happy here, but would consider moving in exchange for a tenant buyout. I won't be surprised if you guys can be paid a good amount, which you can use towards down payment when you buy. 

I will be there! 

Great thread here. One point I would like to add: There's no negative cash flow with a lower down payment. We picked up a 10 unit building in LA, at a price well under market (direct to seller). The rents are low, and we'll be able to raise them over the next several years. 

We put a large down payment on this property. It's worth it, because when we get the rents up, we've increased the property value greatly, and can probably take out 70% of the initial cash in 3 to 4 years, and keep cash flowing nicely. This is not at a crazy LTV either. Thanks to the value add work we did, and the natural market dynamics, there's also now a lot of equity in the property, and nice cash flow.

We investors talk a lot about leverage, but in Los Angeles at least, there are multifamily deals where, if you can add value, you with a large down payment, improve the property, cash out nicely, and enjoy the long term cash flow, strong appreciation, and tax benefits. Added together, these are incredible long term returns. Similar things happen in SF, San Diego, and New York City. Probably others I didn't name also. 

I am a local attorney and investor. I know 2 attorneys who deal with real estate issues, and I think might be able to help. Feel free to send me a colleague request, and happy to share each of their information.  

 Dude, my parents live not far from this one you shared. here's one on their block, full gut renovation needed, listed for just under $1.1. We knew the old owners, who passed away in their 90's. Great people. House has not been upgraded since the 1970's: https://www.redfin.com/CA/Torr...