All Forum Posts by: Burke Ericson

@Jingwen Dunford

Walk away! I had a gut feeling a deal was right and it ruined my life because of a simple mistake. There are more deals, your mental health is worth far more than a building!

@Bryan Kurtz

Hey there. I’m in Cali too and I did a 1031 and turned 1 house into 22 units in Toledo. Personally I see no future in trying to cash flow in California. Plus the rent control laws are really bad and may become statewide. I had a situation where the tenant destroyed the property to a ridiculous degree and we had to pay him tens of thousands of dollars! I say find some markets in the Midwest and Zillow the hell out of them, understand rents and talk to property managers. Good luck!

@Eric Ippolito

I’m from LA. I bought 22 units in Toledo. You can find some sweet deals there, just line up your property management beforehand. You can get a duplex for $60k there, just make sure to get an inspection for the love of god.

@Herndon Davis

Lesson 1-3, get an inspection.

Ask to see schedule E to confirm numbers.

@Ronald Mejia

One more thing man... I think these people do NOT understand how strong the rent control laws are in LA. The city has already tried to apply rent control to single family homes, and it is only a matter of time until they succeed. Be aware if that happens and you want to move in later you will have to pay the tenant off up to $21,000, also you will not be able to rent it out for two to five years.

@Ronald Mejia

How much is it worth. I took 1 house in LA (1031) and turned it into 22 units in Toledo. I also screwed up and bought a building with a boiler problem and lost $100,000 in a panick sale. The last year I have not been the same, but had I not sold and not screwed up my portfolio would of been cash flowing $5-7k a month. I have another LA duplex and I am thinking about doing it again. I learned a lot of lessons, I hope.

I really hope if you 1031 you check your numbers, negotiate price and GET AN INSPECTION, or three! Also, research property management before hand.

I am in the identification period of a 1031 property exchange. I have already settled on a few cash properties, but I also need to secure about $400,000 in new mortgage debt. I have found one rural property that has 8 rentable units and 1.7 acres. The property is listed for 500k and I could essential acquire all of my new debt by acquiring this property. With all expenses and projections accounted for, the property will cash flow about $20,000 a year with 25% down, a $375k loan at a 6.6% interest rate. Really my biggest hang is financing. I am not sure how I should go about it, or even what kind of loan or lender I will need. What can I expect and do you think my projected 6.6% loan rate is realistic? What types of terms are out there and what would you aim for? Just wondering Thanks!!!

Realness here man. I’m an Angelino and our city really sucks, really really sucks for rentals. We are selling a house in SilverLake, prime SilverLake on the Blvd... basically one tenant destroyed our house didn’t pay rent for 5 months and the other one sublet, and refused to stop or move out. Not only did we lose 5 months rent but it cost us, $35,000 to pay the tenants out, $8,000 for the lawyer, $30,000 for the hard money loan to try to renovate and $15,000 in the most basic of repairs and city fines. When people say RENT CONTROL I don’t think they really know what it is or does strategically for bad tenants and for the lawyers that make it a business. In fact, good tenants will do it too you once they find out they can rape you for money, trust. Anyways in 5 months we wiped out many years of profits thanks to rent control, lawyers and human nature. Even before this, we were at a 1-1.5% CAP with a house worth $1,300,000 and a mortgage payment of $980. I would suggest you would have a more lucrative time selling your blood on the corner or selling bootleg lemons. That’s the truth man, and they are trying to make rent control stronger with even less recourse. B

Adam, I was just about to pull the trigger on a portfolio in Toledo and I came across this Lead Ordinance. The last three hours I have been reading and I am trying to put it together. Can I ask you some questions? Is this a paint issue or is more involved? Can you get an inspection per request? (If I purchase I would like to get it done before putting in renters.) How does a person remedy a failed test? How does a landlord defeat the lead prior to the test? What are various fees associated with inspection, abatement and compliance? Do you think this should put me off the area as an investment potential?

Hello, I am wondering how people grow their portfolio after they accumulate a certain number of loans for rentals. For example, some people have 100+ rentals, most of those leveraged with debt, however I know there is a cap on traditional mortgages; (4 or 10??) So I wonder how people keep the train going, how do you get so many loans? One successful person here said commercial loans, however I understand those rates are super high. What am I missing? How do you guys and gals keep getting funding consistently?