All Forum Posts by: Albert L.

Would love to revive this thread with all the latest news with COVID, remote work, etc. Sounds like Point Richmond and Richmond annex areas are still hot spots?

@Maxwell Manatt - yep it be 20% conventional loan. Thanks for sharing all those detailed thoughts. I'll definitely have to be diligent in running numbers.. 

@Brian Garlington - I can always count on you for the candid feedback. Duplex would be a miracle if it ever becomes available. BIG If though haha. 

Thanks for the thoughts! 

Context: 

-Wife and I are looking to buy a SFH home in Pleasant Hill or surrounding area. Preferably 3/2 or something more

-We plan on being in the Bay for a minimum 5 years, potentially more but want to hedge against future risk and come into buying with an investors mindset. Ideally IF we were to move in the future, we'd be able to rent our home out and at the very least breakeven. If we can somehow cash flow (which I know is pretty unrealistic in the Bay) that would be great but not a hard and fast requirement. 

-I hope to find a lot that's big enough to build an ADU, already has an ADU or as in the midst of completing one. The goal of this again is to add extra buffer and have another rental stream in case some unforeseen circumstance comes up (rents drop significantly, remote becomes a permanent thing, etc)

Questions to those who own property in Pleasant Hill or surrounding areas: 

-How realistic is to breakeven with mortgage+other expenses with what we'd be able to get with rent? What kind of tenant pool could I be expecting here in the future? Students from Mt. Diablo? My initial numbers tell me this isn't possible. Assuming it's a 3/2, so it be one 1BR/1BA and two 1BR and a shared BA. Assuming the shared BA is like $850/month each and the private bath is $1000 that leaves me around $2,700 which would be well short of the monthly expenses (probably be ~$4,000-$4,500/month). 

-General thoughts and opinions about the appreciation of this specific county for near future. I completely recognize that everything shared is pretty much speculative but would love hear thoughts regardless!

-Any other questions my wife and I should consider seriously before going down this route?

Thanks everyone! 

What questions should I be asking myself in deciding whether it's worth spending the time/money on getting a real estate license in CA?

Context: 

-I'm in my late 20's

-I'm looking to passively grow a portfolio of cash flowing rental property over the next 10-15 years. I have one property in Cleveland and would be planning to stay out-of-state for the next 1-3 years as I learn the ropes on REI

-I don't have much saved up currently

-I have about 4-6 hours free time for the next year or so that I can dedicate to studying. After that, I think I'd be willing to dedicate a Saturday or two showing homes, putting the license to use but it definitely wouldn't be anything full time. 

-In continuation of above, this would not replace my W2

Love to hear any other thoughts/perspectives/feedback. 

Thank you. 

Hi folks, I had originally planned to replace my roof sometime this summer as it was getting old and was highly recommended by the inspectors when I purchasing last year. There had already been some minor leaks that had been repaired in the past so figured this was something I should do sooner than later. 

However, my friend mentioned that it may make sense to just wait till the roof gets damaged, then claim insurance so that I don't need to pay 100% of the repair/replacement out of pocket. 

I checked with my insurance agent and they had confirmed that this was possible, though I'm unsure to what extend they'd be able to cover. It'll depend on the damage of course and a visit by the insurance team to evaluate. 

Questions: 

1 - Has anyone chose to go this route and take the risk instead of just paying out of pocket to replace? 

2 - How bad can the weather in Cleveland really get to damage an old roof? 

3 - Are there any other factors I'm missing here as I'm considering these options? 

Really appreciate the help as always BP Cleveland. 

-Al

Hi folks, I had originally planned to replace my roof sometime this summer as it was getting old and was highly recommended by the inspectors when I purchasing last year. There had already been some minor leaks that had been repaired in the past so figured this was something I should do sooner than later. 

However, my friend mentioned that it may make sense to just wait till the roof gets damaged, then claim insurance so that I don't need to pay 100% of the repair/replacement out of pocket. 

I checked with my insurance agent and they had confirmed that this was possible, though I'm unsure to what extend they'd be able to cover. It'll depend on the damage of course and a visit by the insurance team to evaluate. 

Questions: 

1 - Has anyone chose to go this route and take the risk instead of just paying out of pocket to replace? 

2 - How bad can the weather in Cleveland really get to damage an old roof? 

3 - Are there any other factors I'm missing here as I'm considering these options? 

Really appreciate the help as always BP Cleveland. 

-Al

@J Scott - Wonderful book - thanks! Surprisingly easy to read and I think I learned more here than my 4 years as an undergrad Econ major lol. 

One follow up question:

What resources do you use / read to educate yourself and keep updated on the latest? What does your weekly 'flow' look like? 

i.e, do you have a newsletter that you subscribe to? a website that you check on the weekly regular? 

I think it be helpful for us newer investors to learn what the educational habits of a vet like yourself looks like. 

Thanks! 

How cheap are we talking here? If you're open to out of state investing, i'm sure there are markets where your HELOC would be enough for a 25% down payment?

Or better yet, depending on your area, you could use your HELOC to purchase a distressed property in need of some minor cosmetic repairs, fix it up yourself and house hack.

Just some ideas to get you going here... 

How would the numbers look with those additional issues? Estimate what those costs would be and see if it fits within your criteria still for what you consider a good deal. 

It sounds like the seller is somewhat motivated which gives you greater leverage to potentially negotiate a lower price. 

I would bet on cities with decent past and projected job growth. if the economy enters a correction, people will stay/flock to cities where there's jobs. there were some good cities already listed above but you'll also want to check that there's a diversity of economies, that it fits within what you have saved capital wise and have some local investors/connections already there who can help you out with building your team.