All Forum Posts by: Amanda Cheng

Hi @Wei Cho, thanks for your input. LA is a really competitive market, we had to outbid 7 other buyers for the property, and I actually opened escrow on it today. I'm going to invest money into getting it into as high market rent as possible before I rent out the units. Then I will refinance my loan for more appreciation as well. 

I'm confused about what you mean after the refinance though. What do you mean by leave more equity in the deal? Please explain. Thanks!!

Hi @Will Barnard, thank you for your feedback. 

Even understanding the available options for my goals is helpful. My goal is to have a cash flowing property for income, so for my strategy, I'm thinking of buying under market with value add opportunities, after I force appreciate the home, then re-finance it, hold it and (hopefully) let it cash flow, while it appreciates in value. 

I am looking in other areas of Los Angeles county as well, i.e. West Adams and Boyle Heights since I know there is plenty of upmarket possibility in those ares of town. 

Thanks,

Amanda

Linking the Report here:

https://www.biggerpockets.com/...

Hi there, looking for some help analyzing my numbers. I've plugged values into the Rental Property Calculator, and I am reviewing the results. I'm wondering - what do you look for when you're analyzing these reports?

Also this is my first real estate investment, and I haven't decided whether I want to do a short term buy for appreciation via BRRR or a long term hold for appreciation of the land. This would affect the neighborhood of the property that I am purchasing from. Highland Park is already a market that's already plateaued for the most part -- it's great because market rents are higher than most other adjacent areas in Northeast Los Angeles, but I'm worried my property won't appreciate as quickly. What are our thoughts on buying for passive rental income vs. buying for appreciation and long term hold, specifically in the Los Angeles market. Also considering that I am a first time investor, looking to build and grow my real estate portfolio; rather than stop at just one property.

Thanks in advanced!

@Richie Thomas thanks for the warm welcome! And the very enthusiastic response to my posting. I've been marinating on your response and letting it really seep in. 

My general take-aways:

• -Use the county recorders office for official plot info and licensing
• -Looks like I've got a handful of expense and operation figures to fix.
• -Look into short-term airbnb rentals as a way to offset lack of cash flow due to LA's high market prices, but also research into the laws more. 

Thanks for everyone's help and input! I won't be moving forward with this property. The rental prices don't justify a purchase this expensive. I'm going to look for something with a cheaper purchase price.

@Seth Borman thanks for straightening out my numbers for expenses there. Also the tips for the tenant estoppel certificate and the reconciled security deposits are key. I didn't even think about tenant estoppel, but in the Los Angeles market, the tenant relationship to the property and whether it is or isn't at market rent is a significant factor in building equity. Very helpful.

Hi BP forum, I am a first time real estate investor. Participating in Beardy Brandon's 90-day challenge and investing in my first property! I am looking at multi-family homes in the greater Los Angeles county.

My question for you all -- how does an FHA loan effect my mortgage calculation? The rental calculator doesn't take into account insurance premiums from an FHA loan.

Secondly, how do I make myself a more competitive buyer when I am putting less down than other buyers? I am likely putting down 5-10%. I am thinking I will most likely have to come in at a strong price because I have under 10% down. Anything under 10% down makes sellers think the loan may not get approved in escrow so they get hesitant to accept. Any low ball offers could get written off entirely.

Thanks for your help!

Amanda

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*This link comes directly from our calculators, based on information input by the member who posted.