Is the property still available?! :( Haha. This is a great video, and AWESOME upgrade to the spreadsheet! I'm ready to house hack a duplex! Take my money!
Great video as always. I’m not sure if you’ve ever discussed this in another video, but what do you think about building an ADU on your existing property to house hack instead of buying an existing house with an ADU?
I think building an ADU is a great idea -- if you have the funds! Financing an ADU isn't really a thing yet, though if you've been living in your current home for long enough to have built up some equity, you can use to HELOC to access that equity and build an ADU with the money. Opening a HELOC in order to build an ADU, in my opinion, is super worth it. According to Rentometer, the median rent for a studio in LA is $1595. Converting a garage to an ADU is likely to cost around $150K. That means ADU conversions meet the 1% rule that you hear about in Midwest markets but never encounter in LA.
Estimating rehab costs is a learned art, for sure! A couple of pointers: Work with an experienced agent. Not all agents can give an accurate estimates, but those are also invest can. Do some research! A lot of work has readily available pricing out there. For example, search for flooring in your area, and you'll probably find some numbers, like "$3/sq ft installed" and the like. You can find pricing for countertops, cabinets, interior and exterior painting, etc. Lastly, get a contractor into the property before your inspection period ends to get a real quote or two before you're locked into buying!
Thank you for another great video! I love those bathrooms! I would like to ask you for your thoughts on the northern part of South Figueroa Corridor. Is it a good area to purchase? I'm about to sign a contract for my first property, a quadplex, in that area. The house is just south of exposition park, and it will cash flow well by housing students. It is west of the 110. Thank you for any input!
I really like the area just south of Exposition Park, though the blocks are very hit-or-miss, so you really have to investigate the specific property and block when making an investment there. Being too close to Figueroa isn't great, nor is being east of the 110. I find better blocks west of Hoover. What's most significant about this area is that Expo Park, which is already benefitting from a new soccer stadium and the soon-to-be-finished Lucas Museum, will also be a major site of the 2028 Olympics in LA. While the infrastructure work being done around Expo Park isn't as significant as what we're seeing in Inglewood, it's still meaningful and will only ramp up over the next six years. I think you're smart to get in near Expo Park before the neighborhood really pops! Bravo to you!
@@thejonschwartz Thank you so much! Closing the deal in a couple of days after the inspections are done. Really excited, but also a little nervous as it needs a lot of work! Still, rough conditions is the only way to get a good deal on a 4-plex these days. Because we are completely renovating, would you suggest 3 smaller bed and 2 baths in each unit, or 2 large bedrooms and 2 bathrooms to provide maximum rents?
@@Fidelityoverother If you can convert the 2/2's to 3/2's, definitely do it! Compare median rents at rentometer.com and look at what 2/2's vs. 3/2's rent for right around your fourplex. I'm almost positive you'll benefit hugely by adding a bedroom. Also work with a contractor who knows the parking requirements in that area. To the best of knowledge, going from one bedroom to two triggers a parking increase, but going from two bedrooms to three doesn't. I don't know for sure, though, so check with a contractor who does.
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Awesome video. I found you today and am catching up on your content
Thanks! I need to make more property tours. Haven't done one for a hot second.
Is the property still available?! :( Haha. This is a great video, and AWESOME upgrade to the spreadsheet! I'm ready to house hack a duplex! Take my money!
Great video as always. I’m not sure if you’ve ever discussed this in another video, but what do you think about building an ADU on your existing property to house hack instead of buying an existing house with an ADU?
I think building an ADU is a great idea -- if you have the funds!
Financing an ADU isn't really a thing yet, though if you've been living in your current home for long enough to have built up some equity, you can use to HELOC to access that equity and build an ADU with the money. Opening a HELOC in order to build an ADU, in my opinion, is super worth it.
According to Rentometer, the median rent for a studio in LA is $1595. Converting a garage to an ADU is likely to cost around $150K. That means ADU conversions meet the 1% rule that you hear about in Midwest markets but never encounter in LA.
Let’s say the property needed some cosmetic repairs.. how would I estimate the rehab cost ?
Estimating rehab costs is a learned art, for sure!
A couple of pointers:
Work with an experienced agent. Not all agents can give an accurate estimates, but those are also invest can.
Do some research! A lot of work has readily available pricing out there. For example, search for flooring in your area, and you'll probably find some numbers, like "$3/sq ft installed" and the like. You can find pricing for countertops, cabinets, interior and exterior painting, etc.
Lastly, get a contractor into the property before your inspection period ends to get a real quote or two before you're locked into buying!
Thank you for another great video! I love those bathrooms! I would like to ask you for your thoughts on the northern part of South Figueroa Corridor. Is it a good area to purchase? I'm about to sign a contract for my first property, a quadplex, in that area. The house is just south of exposition park, and it will cash flow well by housing students. It is west of the 110. Thank you for any input!
I really like the area just south of Exposition Park, though the blocks are very hit-or-miss, so you really have to investigate the specific property and block when making an investment there.
Being too close to Figueroa isn't great, nor is being east of the 110. I find better blocks west of Hoover.
What's most significant about this area is that Expo Park, which is already benefitting from a new soccer stadium and the soon-to-be-finished Lucas Museum, will also be a major site of the 2028 Olympics in LA. While the infrastructure work being done around Expo Park isn't as significant as what we're seeing in Inglewood, it's still meaningful and will only ramp up over the next six years.
I think you're smart to get in near Expo Park before the neighborhood really pops! Bravo to you!
@@thejonschwartz Thank you so much! Closing the deal in a couple of days after the inspections are done. Really excited, but also a little nervous as it needs a lot of work! Still, rough conditions is the only way to get a good deal on a 4-plex these days.
Because we are completely renovating, would you suggest 3 smaller bed and 2 baths in each unit, or 2 large bedrooms and 2 bathrooms to provide maximum rents?
@@Fidelityoverother If you can convert the 2/2's to 3/2's, definitely do it! Compare median rents at rentometer.com and look at what 2/2's vs. 3/2's rent for right around your fourplex. I'm almost positive you'll benefit hugely by adding a bedroom.
Also work with a contractor who knows the parking requirements in that area. To the best of knowledge, going from one bedroom to two triggers a parking increase, but going from two bedrooms to three doesn't. I don't know for sure, though, so check with a contractor who does.
I don’t understand how the buyer secured a 10% down payment for a jumbo loan?
Good catch. That wouldn’t be possible, even with LA County’s higher conforming loan limit. Thank you!