New to the Life as an Investor

General Real Estate Investing
1

:banghead :banghead :banghead Please help me understand today’s Southern :shocked :banghead CA. R/S markets I have two rental properties that I would like to expand. Both are nonperforming to date but I have plans to build non-medical health cares homes in both of them. One is a Triplex 6 bed 3 baths in Palmdale and the other is a single family home 3 beds one bath in Compton Ca. the triplex has enough room on its land to add new construction which would make it a four units. The Compton house has enough land space to build a 2500 SF. living space building, which can come out to 9 beds and 7 baths in the rear of house.

Now I’ve been studying but it seams I’m missing something because I find myself stuck. Now I have no other income so I’m looking into hard money - lenders or creative deal - makers to find monies so I can create a 3 years plan in utilizing all land space for these care homes on both properties. I have been thinking if I can pull money out of the both I would be able to buy a few rehabs and flip contracts in building capital for new construction.

I’m lost in this mix of landing companies they have sent out appraisers but of course my properties are coming in to low so they say. Compton is listed as a 2-bed room but it’s a three how did this happen I ask? “ Someone dropped the ball back in 79 when addition was failed.
[b][b][/b][/b] send me I will find it… :bs

2

please excuse my miss spelling I wanted to say at the end of my post :Someone dropped the ball back in 1979 when addition was filed.

3

I’m exhausted just reading about this.

You’ve got a lot (too many) of issues going on.

However, I would never say you can’t do what you want. It’s just that you’ve got a mountain to climb, and after you get on top, then what? What do you actually have? A low-paying, management intensive job?

Why are these properties not performing? What does this mean?

What does ‘non medical health care homes’ mean?

If this means anything close to ‘board and care facility,’ you’ve got a BOATLOAD of regulations to meet.

For example:

  • 36" bedroom doors; unobstructed.
  • Two exits per room.
  • Fire suppression.
  • Licensing.
  • Surprise inspections.
  • Competition for customers.
  • And that’s just the beginning.

Before you go all hog wild on this, you need to see what the regulation and qualifying requirements are BEFORE you start.

For example, if you don’t have at least $50,000 in the bank, liquid, you’re not getting a ‘non medical health care’ license to do squat.

The state won’t license people they believe to be operating on less than a shoe-string, regardless of what they’re actually doing.

I would rather see you consider leaving these units alone, and offering furnished room rentals (with bunk beds, if you have to), if it’s just about staying above water. That, instead of going into this huge and complicated conversion effort just to create a management intensive job for yourself.

Anyway, I could say more, but that should get you thinking.

Good luck.