All Forum Posts by: Aaron K.

Typically for a fiduciary you can pay by the hour, where the other "financial advisers" make their money through the commissions on the products they sell people.  Some are of course employed by financial institutions in good faith but unless they are a CFP (Certified Financial Planner) or fiduciary there is no guarantee.

 Another thing that you should think about, is why is it your dream to move to Santa Monica specifically? If it is the beach, there are cheaper beach cities. If it is the city, there are cheaper areas of the LA Metro.  Just some things to consider.

 Completely agree. By the way your podcast is my favorite.  Cash is king, especially in competitive markets too, which Santa Monica is.

Hi Lan, I have not run the specific numbers, but I don't believe that mobile Homes even in those cities will rent for that much, if you would like I can pull rental comps for you to be sure. Also you will likely have a harder time finding tenants who will want to rent a mobile home for such a high price point, because if they can afford $2,000 rent in a MH they would likely just buy one. I might recommend looking to the Inland Empire for better returns on rentals both multifamily and SFR, you can also find some manufactured on land in the IE that aren't as far off with the rent. Let me know if you would like to discuss further.

Some things to consider for that purchase price, that will hamper your cash flow, Property tax which will likely be 1% or higher, property management (if you aren't self managing), insurance, for a property that size could be over $1,000 per year.  Plus you will have to consider repairs, the farther inland you go the better your returns will be, but it will be difficult to achieve significant cash flow in the LA metro area.  It may be there but you will definitely have to dig.

Just a note on financial advisers in general.  If they are not a fiduciary they are not your friend.  Fiduciaries are obligated to have your best interests in mind while other "financial advisers" for the most part are trying to sell you something that they will earn a commission on.  Just something to be aware of.

You can look out of state but a very important thing to consider is that WA has no state income tax where as most other states do.  That alone could shave 5-10% off of any income gains plus the 5-10% you would lose by going to a property manager.  It all depends on the deal not the state, if this isn't the right one another will come along that will be.  Even looking farther out, but within driving distance might be an option I.E. Spokane or Yakima.

Are you purchasing as a rental or owner occupied? If owner occupied you would only need 3%-5% for the down payment, but it is always good to have a little extra just in case something goes wrong.  If strictly as a rental you will likely need 20% or more to get financing, plus if you continue to live in New York it will be harder to do repairs yourself.

Underestimating is just part of the risk in this business, but a good way to cut down on some possible repair expenses is to learn to fix most things yourself.  Youtube will be your best friend if that is what you decide to do, at that point all you would be paying for is materials as you are providing the labor.

It also depends on the market that you plan to buy in for example a $800,000 home in San Francisco or a $50,000 home in Kansas City