All Forum Posts by: Tammy Skeath

Out of my 8 doors, I have 1 behind on September. She is supposed to pay in full on the 15th. Throughout the past few months all rents have come in but tenants have taken their time. Since we can't charge late fees here in LA county it does de-incentivize on time payment.

Hello! I also live in Redondo beach. I’ve recently bought in Long Beach and FL. I would be interested interested in a meetup as well! 

Hi All, I wanted to give you an update on this quad. So we did pull contingencies and everything went as good as could be expected! 
Construction came in within our contingency budget (105k all in with a couple of surprises. Also, because we closed on April 4th and everything was so uncertain we were able to get a 5k credit at closing. Also the contractors were all out of work and I think that helped to get everything done in record time. We finished construction in the first days of June and just today we got the last unit rented. All rents came in at market rates even though they took almost 2 months to rent. I worked with a property manager and we were really strict with our screening of tenants given the economic uncertainties so that might be why it took us a bit longer. Anyway, I think following through with this deal was definitely the right choice. Thank you all for your input! Here are some before and after pics. 

@Tim Stuart city water/sewer. They are in the SW cape. 

@Tim Stuart the double duplex was in Cape Coral FL. But I live in Redondo Beach CA. We have a quad here in Southern California too. First step in the modified BRRRR was finding the deal. Like I mentioned since the two duplex were on the market side by side, I was able to get a discount by offering to buy both and then I brought the price down lower by purchasing them all cash.

We were considering purchasing a duplex (new construction)in December but instead purchased two duplex next to each other that were built in the 80’s. We were able to do a minor rehab on 2 of the units and we are getting $1300 for all four units. We purchased them cash and did a cash out refinance recently and have reinvested the funds. Even with 25% in the deal we cash flow at 10% cash on cash. I definitely think there are ways to invest wisely in this area. 

Hi there, Did you ever choose a security system for your 6 unit? I have a 4 unit that is in a C/D neighborhood in Long Beach CA and I need to install cameras but I don't want to spend to much money nor do I have wifi for the system. I'm curious if you found any reliable ones without wifi?
Thanks!

Hi @Britta A., yes we closed earlier this month and have been working away on construction. Construction is going very well. Contractors have been especially helpful during this time. Several of them even lowered their bids.  We hope to be done by June. Hopefully, in time for restrictions to be somewhat eased and to rent the units. We have 1 unit occupied, we plan to evict that tenant once restrictions are loosened. Thanks for checking in! 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Long Beach.

Purchase price: $750,000
Cash invested: $187,500

Bought a value add quadplex that was almost all vacant in Long Beach CA. I plan to rehab all of the 4 units and the exterior with a budget of $104K and then rent the units out in about 60 days for market rents. I should be cash flowing about $125/per unit a month.

What made you interested in investing in this type of deal?

It had potential to cash flow in an area that doesn't always cash flow. It has great long term appreciation potential because it is in the path of progress and there is a bonus area that could work for an ADU.

How did you find this deal and how did you negotiate it?

Through a real estate investment group in Long Beach CA- Buckingham Investments.

How did you finance this deal?

Conventional loan 25% down.

How did you add value to the deal?

Rehabbing it for $104K

Lessons learned? Challenges?

Given the circumstances with Covid-19 I was able to renegotiate price and get a credit on closing costs.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Buckingham Investments

@Ryan Proffit yes! I loved that episode!! Thinking about it a lot. Thanks!!