All Forum Posts by: Brendan M Hornung

Hello BP,

Someone I know recently inherited two homes through an estate inheritance. One property is rented with a tenant in place, and the home in Riverside, CA is the home of the person who passed. This post is regarding the Riverside, CA home. It is a 3/2, roughly 1750 sq ft, and on a small lot so there is no chance to build an ADU. The current mortgage is $1,000 per month at 3.8%. Rent is estimated at $3,000 per month and the home is roughly valued at $625,000. It was built in the late 1920s but in relatively good condition. Could use some cosmetic updates throughout and the rehab estimate would be about $40,000. Comps run about $650,000 - $675,000.

My questions to you: What is the best exit strategy? Would it be worth it to rehab if we sell it or rent it?

Option 1: Keep the home and rent it and cash flow about $2,000 per month while it appreciates.

Option 2: Sell the home and cash out.

Option 3: 1031 exchange the home into 4-6 units in Knoxville which would be about the same value.

More info: Riverside as you all know is a great appreciating market but not landlord-friendly being in CA. Knoxville is in the top 10% of appreciating markets with an average appreciation of about 9% per year. I also have heard that if you sell a home that is inherited through an estate you are not taxed. Is this true?

Thanks, BP fam!

Hello all,

I appreciate all of your helpful responses. This is my first tenant at my first rental property. I created the lease through Zillow and I believe I did not include an early termination clause. With that, since my property is in Alabama, it sounds like I have two options:

1.) List the property and have the tenant continue to pay rent until a new tenant is found. 
2.) Offer the tenant a buyout having them pay the current month’s rent and the next month and return the security deposit.

Are these my only  two options?
Do I need to return the security deposit in both of these scenarios even if the tenant never fully moved in and there is likely no damages or cleaning needed?

It may be also worth noting that I am a remote investor in Santa Monica, CA and do not have easy access to the property.

@JD Martin @Denise Evans @Mohammed Rahman @Patti Robertson @Alecia Loveless

Hello all, I had my first tenant sign a 12-month lease agreement at my property in Alabama on July 1. She has already paid rent and the security deposit but is requesting to terminate the lease after 8 days because her mother passed away. She works for her mother's business and needs to move back home.

I have read that my tenant is responsible for paying the rent until a new tenant is found. 

What I should do with the security deposit? Are there any other charges or legalities I should know of?

Any other advice would be greatly appreciated!

I recently purchased my first property in Cullman, AL (4/2 single-family home). I am seeking a property management tool to schedule showings, screen tenants, collect rent, and allocate maintenance requests to one centralized platform. The listing is posted on Zillow. I have a lockbox on the property that generates a new code for each property tour.

I live in Santa Monica, CA so I need a tool that will allow me to manage the property remotely. Are there any tools that you recommend?

Any insight is appreciated! Thanks, BP fam!

Hello,

I am looking to build my team in Cullman Alabama and I was wondering if anyone knows a good contractor in that market. I need someone who can paint the interior of a 4 bed 2 bath 1800 sq ft home.

Hi all,

I live in Santa Monica and am looking to buy my first investment properties before the end of the year. Ultimately, I would love to scale to a large portfolio over 10 years, but to get started, I want a fixer multifamily under $250,000. This is literally impossible in LA, so I am looking out of state and Knoxville continues to pique my interest. Ideally, my first investment property would either be a long-term rental or a mid-term rental for travel nurses/traveling business professionals.

Does anyone know much about beginner investing for Knoxville? What neighborhoods are good vs. what I should avoid? Any other market insights?

Looking to get this going again. I am in Santa Monica and fine with a meetup in LA or OC. Excited for a local mastermind!

 Justin,

Thank you for this post! I too am looking to begin my investing portfolio in FL with the same exact parameters as you, but I would be investing from across the country as I live in Santa Monica, CA. I have the cash ready to go but am stuck in analysis paralysis. Would love to follow this thread for ideas of markets to invest in. 6 figure capital ready to deploy.

Hello Steven,

Thank you for sharing your amazing journey and fabulous job 10x twice in a year! I am a new investor and looking to join a master class where I can network to make new connections. At this point, I am looking for a mentor as I am ready to invest. You said it best, your network is your net worth!