All Forum Posts by: Blake Kirby

@Osazee Edebiri I cannot tell you how much I appreciate you seriously. I’m not super new to land lording but the laws are crazy. I’ve never had to do cash for keys but I found out the minimum is $22,000. I had no idea! I also think it’s crazy that they have a law for cash for keys! The remodel for a new lease is genius! I’ll be able to present multiple options to the tenants. Is there anyway we could link up? I would love to ask you a couple more questions. I do know that these people are human. Of course I am not trying to take advantage of them. I just need to stop hemorrhaging money on this property. I’d love to make it a win-win for everyone.

@Allan C. hey thanks for getting back to me. Have you ever done cash for keys? How much should I offer and how do I bring it up i.e. what do I say? 
Do you have any recommendations for eviction attorneys, and a general contractor for “substantial renovations” in L.A.

@Becca F. thank you for your reply. All seven are at 990. I manage the property myself and budgeted for basically nothing, my number is to only cover the mortgage. I thought kicking the tenants out, would be easier honestly. Live and learn. If I get every unit up to market value I will be turning a profit. Besides lease violations do you have any other suggestions to get them out?

I 1031ed the one house for seven units so I thought this was a great move. It’s still Can be if I can get the rents up. I have faith. And with you guys I have support. 
I guess I also need to ask everyone if they have any recommendations for eviction attorneys, and a general contractor for “substantial renovations” in L.A.

@Eliott Elias thanks for your response. One of the tenants does have a ring camera but it was there when I bought the property can I claim that as an unauthorized modification?

@Nathan Gesner I was doing a 1031 exchange with a house I sold in Oregon. The seller financing is for seven years so if I do nothing and I’m able to increase rents by 10% annually I’ll get up to roughly 1550 in rent. I imagine that’ll put the property value close to $2 million at the end of the 7 years. What do you think? But I purchased the property for 1.7 and will sell when the loan comes due in order to 1031 up with a little over 300,000 in force appreciation. At least that was what my thought process was.

@Dale K Poyser Thank you so much for your reply! They are month to month so I can just not renew? What kind of notice do I have to give?

Is #5 legal because that seems a lot like just increasing their rents? What could be the legal repercussions? 

I just got a deal with seller financing and to make the payments I have to increase rents. With LA's ridiculous laws im not sure how to get the tenants to move out. Turns out 5 out of the 7 are related and they only pay 990 in rent in Los Angeles (market is $1800). I know some are going to say cash for keys but should I actually say, like a script? I know I can kick them out for "substantial " improvements but I cant really afford the 30 grand it would take to remodel with the relocation fee. Looking for advice. Should I hire a homeless man to scream at all hours of the night? Just a thought and a joke... I think

First @Melanie Johnston thank you for the information!! Planning for the upcoming recession which of course is speculative Phoenix is rated 2nd most volatile. Any thoughts?

https://www.forbes.com/sites/amydobson/2019/09/12/these-10-cities-will-be-the-most-vulnerable-when-the-recession-hits/#355288432aa1

@Ryan Swan
Can you explain the high tenant demand? I know over 9000 new units were built in 2019 and construction is the biggest industry in Phoenix. Do you think supply with surpass demand?

https://azbigmedia.com/real-estate/multifamily/phoenix-ramps-up-apartment-construction-by-18/

There is rapid expansion to match the flood of new people with LA more or less being land locked. I am not trying to disagree!!! I want to play devils advocate, to have a convincing argument.

I am in a 1031 ex and honestly overwhelmed with deciding to stay in Los Angeles or move to Phoenix AZ. I could really use some advice. I need help finding statistics of appreciation, population growth, job growth.
California of course has great appreciation and limited competition growth with high house prices making renting almost a necessity but I worry with more people leaving California then coming in this year that Phoenix might be a better investment in terms of long term growth. Thoughts? Facts? Help?

Pros

L.A.

• Low vacancy 
• Renting is almost a necessity
• High rents
• Expensive 6-8 units vs 14-18

Con

• Rent control
• Laws are favoring tenants
• Mass exodus 

Phoenix 

• population growth 2.3%
• job growth at 2.1%
• no mold
• In the sunbelt IE good for baby boomers
• Cheaper 14-18 units vs 6-8

Con

• Hotter then Satan
• Lots of competition 
• Low rent 
• Higher vacancy?

This is the biggest decision of my life and I don't know what to do! Coming out of the 1031 I'll have about 620k to invest which means I am looking in the 1.5 to 2 million range if it matters. I am based in OC if anyone has recommendations on advisers Real estate, financial, meet ups, anything really.