All Forum Posts by: Brendon Woirhaye

Another possible idea would be to look at the opportunity zones.  If these take off in a big way, you may have a significant uplift in those areas.

Check out an opportunity zone map at https://esrimedia.maps.arcgis.com/apps/View/index....

Proposition 10 has failed!  We will have to see what that means for the LA county rent stabilization. 

Welcome to biggerpockets, @Brian Lee!

California is indeed an expensive market, and you'll see some more enticing returns in other parts of the country.  I've done very well locally in California myself, especially in the area of appreciation, but I do expect future investments to be further and further from home.

At a high level, figure out your return on equity for the properties you own and determine if you can get a better return from a new investment.  Consider all expenses, not just your mortgage payments.

Some questions to ask yourself:

What is the value that you personally bring to your business?  Is house hacking your primary residence your area of skill?  Would managing a multifamily property personally be something you'd be good at?  

What are the tax implications of your different courses of action? Are you able to deduct the HELOC interest? What will the tax implications be of your different options?

What is your long term goal, and what moves can you make now that will align with that goal?

It looks like you're off to a good start with a couple rentals in your portfolio.  Its good that you are taking some options off the table that you know you don't want to do, but I think you need to continue to focus your options a bit further.

It depends on the law.  Cities, counties, and/or states may all have their own processes - or restrictions - on having people move out.  The "cash for keys" method is to basically bribe the tenant to leave without the waiting period or formal eviction process.

I used it successfully once for $300 per tenant in a house I just acquired, another time I was unsuccessful offering $2000 and had to go the route of a 60 day notice (required in my state if the tenant had lived there more than a year).  Prices may be many times that in certain rent controlled situations.

My suggestion is to research the laws and customs in your target city.

Fact check on Proposition 10 ads:  https://www.politifact.com/california/article/2018...

There are differences depending on the market and on the product you are renting.  We've used:

- local newspaper ads (no longer do these)

- signs in the front yard or on the building (we've had a lot of interest generated, but never rented to a sign respondent)

- Zillow / Trulia / Hotpads (our most effective in actually finding people we've rented to)

- Zumper / apartments.com (generate fewer leads but probably higher quality)

- Craigslist (used to get a lot of good response here, but the frequency and quality of applicants has declined in recent years)

- Facebook marketplace (variable)

- Our own website (mostly we drive traffic to it from the other ads, and have more detail and photos here)

Looking forward to other people's responses.

Expect the unexpected!  Beyond the easily visible and predictable flooring/repainting/cleaning/landscaping costs, figure that you will have more than one discovery of other important issues - the water heater needs to be replaced, the garbage disposal seizes up, the rain gutters are broken, some internal wiring is messed up and a light doesn't work, a bathroom fan starts making lots of noise after its run for a few minutes, a water main breaks..

Make sure you have a cash cushion - or line of credit (credit card in a pinch) which you can use to address unexpected costs, some of which can be pricey.  

Once you get a renter in place and start operating, consider all your routine costs - property taxes, insurance, local licenses and fees, maintenance and gardening, utilities and city services (that the tenant doesn't cover), tax preparation, legal, landlord association dues.. and put extra aside for non routine repairs and capital expenses.  

Check with local and state laws, but I'd expect that you'd have to disclose the murder/suicide to prospective buyers when you sell it.  If the house is good and the price is right, you'll find a buyer.

@Eris T. Welcome to biggerpockets!  You're on your way with your house and renting out rooms.  You're also starting to learn other financial lessons it looks like.  Keep learning, you'll have a lot of potential.