All Forum Posts by: Adrian Jenkins

I am coming to the same conclusion as well. Perhaps the only benefit for the STR is the active investment status since it can potentially offset W2 while the mid term or long term cannot. If the revenue for the short term is as much as the long term due to the STR restrictions, maybe the STR strategy wins based on that. However, there are so many nuances such as where does the home owners stay? In the second unit that was a STR but now is owner occupied to meet the IRS requirements etc..

On a Separate note, do you know if a duplex where owner lives in one unit is exempt from rent control in LA? I read this somewhere that the rental can be exempt in this scenario.

I am not understanding a reasonable strategy here. One buys a house with an ADU built before 2017, makes the ADU their primary residence for whatever the requirement is and then is able to rent out the same ADU for 120 days (or longer if the permit is extended)? The main house stays unoccupied during the time the host stays in the ADU for the min. time requirement?

I have seen local CPA's claim they can help offset high W2's with short term rentals here in LA. Since LA has banned STR for more than 90 or 120 days, requires one to live in the property for 9 months or so and ADU's or guesthouses cannnot be used as STR, how does a host pass the Material Involvement test? It is not possible to drive to Big Bear or elsewhere two hours away each time a guest leaves my STR to pass the Material Involvement test.

Anyone doing this successfully in LA?

I thought LA banned ADU's as STR.

Hi everyone! I am seeing how affordable condos are in Manhattan compared to downtown LA where I live. I had read about the exodus in NY and CA has had its own version last year.

Some of the condos I'm seeing in the MLS as well as Co Ops seem to cash flow based on rent prices. Is there something I'm missing? I have read that Co Ops can be tough to invest in if you want to rent them out. Is this the case for all Co Ops or does it depend on the board? How about condos?

Any thoughts on this market from experienced investors?

Great! Thank you. My loan officer said we don’t have a way to police who is occupying the property and we wouldn’t know if you didn’t implying I could do an owner occupied loan but I don’t plan on taking that risk. 

Yeah issue is I went with a credit union assuming they have lower rates. I didn’t realize they don’t do investment property for 30 years. Do most ppl go with bigger banks for a investment property?

Sorry should have clarified. It’s a 15 year loan amortized as 30 years for a non owner occupied 25% down mortgage.

I am about to invest in my first 2 bed 2 bathroom townhouse. My bank is offering me a 15 year loan with a balloon at end at 4.65%. Is this a good deal or would you rather go for a 30 year term? 

@Sean McCluskey

SFH 20% down 4.1% got approved a week ago, so this was prior to last weeks developments. Can I ask that my bank re-evaluate the rate?