Hello from Inland Empire

[Jeff Zamora]

Hey BP! I've been reading posts and listening to podcasts for a while now and finally am getting around to saying hello to you all!

I've had a rental property in the past but sold that during the boom in the mid-2000's. I really regret selling and have wanted to get another property ever since. My current goal is to pick up 5 or so properties, preferably MFR, in the next 5 years. I have a very time-consuming day job so will be looking for minimal rehab or turnkey. I do have a team of trustworthy contractors I've worked with on my primary SFR, so am not too worried about rehab as long as it isn't extensive. I've been looking at 650K or less (with 25% down) in the Inland Empire area - Redlands, Rancho Cucamonga - but find very few deals that cash flow - seems like most are actually negative. I am reluctant to do my first deal out of state given what I have read on this site and the additional risks involved.

Anyway, looking forward to getting more involved on the site. And thanks again Josh for starting this great community!

[Jeff Zamora]

Hi @Steve Veen 

I ended up passing on the Redlands property. It was in terrible shape. I did end up purchasing a bank owned duplex close to my primary residence for a pretty good price. It required a substantial rehab, including going down to studs in one unit, redoing electrical in that unit and minor plumbing. I am just about done with the rehab at this point (about 45 days in now) and hope to have it rented around 9/1 - 9/15. I'll end up doing delayed financing around January then start looking again for a MFR, including looking out of state.

I agree about contractors.  One reason for working on the property up here is having a set of known contractors.  I think that is probably the major reason we are getting this done so quickly given the amount of work we did.  However, I also learned on this project that timing a rehab for July/August is a sure way to pay a premium for labor.  My regular painter is charging 50% more for labor right now compared to winter rates!

Thanks for reaching out!

Jeff