All Forum Posts by: Aaron K.

Make sure that zoning would allow for a separate unit before you build anything, but if that works out I'm always a fan of maximizing the properties you already own before going out and buying more.  Also being in Oakland I think having three units on a single lot would increase your value a lot (assuming they are allowed and permitted of course).

I hate interest only because you are not building wealth at all you are just paying the interest and getting no equity, unless the property cash flows like a beast which would be unlikely in Los Angeles I wouldn't do it myself.  If the property is a flip that is different, but you might look to a hard money lender or other options that are available to flippers.

As far as offering below list price you want to look at properties that have been on the market a while, or have other special circumstances for example a tenant who doesn't want to move, or the property previously fell out of escrow.

Based on my knowledge of the Southern California market I believe that it would be difficult unless you have a larger than normal down payment.  I also don't think that "the next downturn" will help the situation because even if prices fall dramatically ( which may or may not happen due to massive economic and job growth) it may still not be enough in the bay area.  You might consider house hacking which would lower your living costs and allow you to invest with a lower down payment.  Please let me know if you would like to discuss further.

You can but you will have a much easier time with better credit and in your situation starting out might just mean evaluating properties and getting familiar with the market that you plan on investing in.

If you want to be the most fair, split everything except the mortgage payment 50/50, then let her pay half of the interest for the mortgage that way she would still be paying for the housing while not paying for equity that she isn't getting. If your mortgage is $1000 per month and $600 is interest she would pay $300 and you $700 and her share would go down over time as you paid down the loan.

If it is a line of credit then it can be considered cash, if it is MLS you should definitely use CAR or else you might scare off the other agent and consequently the seller, if you are worried about it you can always write the offer as from yourself or assignee, but again this may put off some agents/ sellers. Hope that helps.

I think it might be a hindrance to your brand/ reputation especially if you are using a company or LLC, many scams use Facebook messages and you don't really want to be associated with scams like that.

Trying to time the market is impossible, if you pick a good property in an area with good desirability and growth you should be fine especially with rentals.  If the economy goes down some people aren't able to buy, meaning that they will have to rent.  In the recession in California most rents stayed flat even though prices went down.  This means that unless you plan on selling in the immediate future price fluctuations shouldn't make a difference.

@Christine Kankowski I agree that Temecula and Murrieta are a great place to invest but I think your commute time to San Diego is very optimistic, more like 45 minutes minimum with no traffic.