All Forum Posts by: Anne Chiramberro

I just went through a similar situation to your hypothetical. Served notices to Cure Breach or Quit after tenants' direct deposit had sent early rent to my checking account. Since there was no way of reversing or returning the payment through my bank, my lawyer advised I mail them a check with the returned rent and a letter clearly stating I was refusing rent until the lease violations were corrected. The mindset is that if you take tenants to court for an eviction but are also still accepting rent from them, it looks like you're not really bothered by whatever they're doing wrong, since you're still happy to take their money.

TL;DR Just send tenants a check for the amount of paid rent clearly stating that you are not accepting rent until they comply with your terms.

This thread is pretty much over it seems, but I just wanted to thank @Sam Dogen for starting this discussion. Reading through everyone's responses has really helped me decide whether I should sell my SF condo (after receiving a tempting $$$ offer) and figure out my priorities and longterm goals. So grateful for the points people brought up, and I'm especially appreciative of @Amit M. sharing his experience and insights as a San Francisco investor. Thank you.

Congratulations on the appreciation, @Arlen Chou! Thanks for sharing your strategy. I've considered paying for properties with cash and then refinancing down the road, so it's good to read of a success story using this method. How long did it take for you to get the refinance after you bought the property? What interest rate did you get for it?

I haven't invested with appreciation in mind yet, but I bought my primary residence 2/1 condo in San Francisco in 2012 for $875,000 and now it's worth around $1.1 million. I'm really pleased to see the appreciation and will most likely rent it out one day to get the cash flow and live somewhere else for cheaper.

When looking to hire a property manager, I'm looking to hire someone with efficient systems in place. Time schedules for accepting late rent (with fee) and sending out 3-day, 30-day, and 60-day notices. I want a property manager who has rent collection working like clockwork, and who screens tenants effectively while turning over units in a reasonable amount of time.

Basically, someone who would do what I would do but better. Landlords are looking for property management companies that run like a well-oiled machine. And don't screw them over with inordinate fees!

Hi, @Debra R.. Welcome to BiggerPockets! 

I'm in a similar situation as you with low income but high assets, and I'm currently in the process of getting a loan for a duplex in Chico. It hasn't been easy to find a lender willing to work with me, but I think I've found one (fingers crossed they follow through). I'd be happy to share my experience with you if you want. Just send me a private message.

Check out @J. Martin's meet up group: http://www.meetup.com/REmeetup/
Their next meeting is in San Francisco's Financial District on April 22nd.

Hi, BiggerPockets experts.

I'm in contract to buy my first duplex and the septic inspection report came back saying the septic system is not up to code--the code being that it cannot be within 5 feet of a building structure. It looks like they built a laundry room 5 feet from the septic system.

In talking to the inspector, he told me this does not affect the functioning of the septic system in any way. But if that's true, I wonder, why would they have a city code about it? The inspector also said the system was set up in 1962, so the age of it concerns me.

If you know anything about septic systems, please guide me, as I've never dealt with one before. Is it a big deal that it's not up to code? How would you advise me to proceed in negotiations with the seller?

Thank you for your help!
A very grateful newbie

Welcome to the forums, @Noel John Cabrigas! I also spent quite some time lurking the forums before getting involved, but it's amazing the kind of knowledge you find here once you start asking questions. Glad to see someone local too. I grew up in Daly City and San Bruno. Looking forward to reading updates on your journey to wholesaling on the Peninsula.

@Ali Boone You make a really good point on cash-on-cash returns. I'm really cognizant of that when looking at deals, because I want to be sure whatever cash I invest in real estate gets as good or better returns than my stock account.

@Jay HinrichsAppreciation is definitely something to keep in mind. Unfortunately the place I'm looking at right now is in an okay part of Chico (B neighborhood), so I'm not ready to bank on appreciation for this one if the cash-on-cash return isn't looking worthwhile.

And thanks for your input, @Christian Galassi. I'm glad to hear managing Chico properties from the Bay Area has been done before! What has been your experience managing properties with college students from afar? How often do you have major issues come up? I'm sure I could do it, I'm just worried about getting in over my head.

@Ali Boone I'm looking at Chico because prices are so much more affordable up there than the rest of California, steady stream of college students to rent to every year, and it's a really nice community. In terms of cash flow, I think it's doable so long as you put up a large enough downpayment upfront. Things might be tight with 20-25% down, but if you can manage 30% or 40% the numbers look much better.

Where are you investing out of state? And do you use local property managers for those places? How has your experience with PMs been?