- Crappy houses in desirable neighborhoods with good school districts!!!
- A few favorites: Huntington Beach, Costa Mesa, Fountain Valley, Anaheim, Orange, Santa Ana, Tustin, Long Beach, Torrance, Redondo, Westminster, Culver City, Mar Vista etc.
- Purchase Price = $300k-$800k (we prefer houses that are 2/3 of the median price point…not luxury, high-risk projects)
- Single family houses, duplexes, quads / fourplexes
- Location = Near freeway corridors I-10, I-5, 405. From Santa Monica to Riverside and Pasadena to Laguna Beach (We like areas in high demand where our projects will sell fast – nothing rural)
- Condition = fixers! We want to turn Crappy to Happy. We’re okay to do a quick close on a nicer property, but LOVE houses built after 1960 with good bones that are begging to be remodeled.
- Profit Goal = 15% cash on cash returns on purchase price + improvements. Nearly every deal we do is at least $45k profit (after ALL expenses: broker commission, cost of money, insurance, closing fees etc.)
- *Ninja Tip* We constantly monitor the MLS for day 1 fixer listings…but 95% of these deals turn into bidding wars with razor thin margins – no thank you. The majority of our great deals come from savvy brokers via less competitive channels, for example: expiring listings, old/forgotten listings, mislabeled sq/ft, buyer couldn’t perform, houses ideal for additions, and existing relationship with owner (to name a few)
Residential Buying Criteria for Southern CA: Los Angeles, Orange County and Inland Empire Sean Katona 2017-03-14T23:59:57+00:00