All Forum Posts by: Bruce M.

I have rental properties in both NV and AZ, all are 1 to 4 unit properties.  Any advice on where I can go get all of them written together?

I am looking for a property manager to replace my current one for a four-plex I own in Tempe.  Does anyone in here have a recommendation of one they use?  Please PM me and let me know. 

Thanks!

In my opinion, the Las Vegas market is about 12 to 18 months behind what happened in Phoenix. These markets got to a point where they were so cheap it simply made sense to many investors like me to start buying there. I don't think Vegas will appreciate as fast as Phoenix has but I do think it will go up nicely. I started buying in LV last November and many rolled their eyes when I told them. It just seemed like it could not go down much more based on what it would cost to build the same house. I was buying in the 85K to 105K price point for SFRs and bought a few condos at around 50K. Rents for the houses have been in the 1100 to 1300 range and the condos around 850. I hate HOAs but they still cash flowed. Some of the houses even have HOAs there if built after the mid 90s. Things started to really change in the 1st quarter and there is a lack of inventory mostly because of NV foreclosure legislation. I watch the stats and the LV median has gone up at a fast clip this year.

Mike Welch I have out of state properties and continuously have these exact problems. Yes, I handyman could have fixed the problem most likely but most PM companies want to send a licensed electrician out or a licensed professional for other issues to cover their you know whats. Then you pay that price. It is difficult to find a PM that will treat your property like it was their own. I have switched management companies several times but find this to be a contiunual problem. I do negotiate several clauses in my contracts with PMs though so I can leave if I am not happy. I have come to a point where I just accept some leakage for these types of situations, sad but true. This is one of the reasons it can often make sense to own property in your own backyard.

I know this subject has been beat to death in the forums, but can someone in simple layman terms tell me how I can set up one of these?

I have both solo 401K and SEP-IRA retirement accounts. I have been an employee of my corp. for years and have collected a nice sum in my retirement accounts. I want to loan money to myself for some rentals I own and repay my 401K interest from such a loan. From my understanding I am limited to 50K to do this? Is that correct?

If that is the case, then I wanted to create a checkbook LLC so I could by some rental properties or do hard money lending from my SEP-IRA. I am only interested in loaning myself money and setting up a checkbook LLC. I am not interested in setting up a custodian account and buying property in it.

Also what are the lowest fee companies that set these up? It seems I need a company to set these up, and then a lawyer or something to do the checkbook LLC portion?

Jeff S or anyone else who may know, Isn't it true that you can only lend up to 50K from a 401K or solo 401K, or can you lend more than that? I thought 50K was the limit?

I have to say Edita Davtyan brings up some valid points....CA investment properties have a lot of expenses and the ratios are not as good as other places. That being said, I always think it is best to buy your first investment property close to where you live. I would look at areas that are within a few hours radius but are cheaper than where you live (Long Beach). Maybe look at places in San Bernardino or Riverside counties, or even Bakersfield. These areas are cheaper and often offer better cap rates. But as I said, the cap rates in CA are usually not as good as other places. Good Luck!

Unless I am missing something here, you can offer whatever you want on the property. You have the option to make any offer you feel like. You have the right to make an offer and the seller, or the bank in this case, has the right to accept, counter, or reject your offer. If you know the property is not worth 285, or it is not worth that much to you, do not offer it. You can still present any offer that you want. Obviously there are reasons why this property is not moving and it sounds like the price is the reason here! My guess is the summary you mention is from the listing agent? It sounds like you know the market and the value, and what you want to pay, so make an offer that you feel comfortable with. You may not get the property, but why overpay for it if you don't feel it is worth more?

Richard Chang, yes I buy at the Clark County trustee sale. Don't even think about doing this unless you know what you are doing. This is not something to take lightly. Buying at trustee sale has many risks. I get reports from contacts I have in Las Vegas as to which properties are going to sale each day. I do not use recontrust or B of A. I search all title records and have someone in the title industry do that for me as well. I never bid on anything unless I know which position the loan is in that is foreclosing. I also know what liens are on the property prior to bidding. In NV HOA liens must be paid by the new owner. They don't go with the old owner like in CA for example. Many properties have HOAs there. Also there are tax liens, other liens called SIDS and even other utility liens. You have to know what you are doing. The deals are drying up quickly at trustee sale in Clark County so it is probably going to be a while until we see some better inventory because of the legislation I mentioned earlier.

Edita Davtyan I usually ask for once a year on an inspection but if I have any issues with tenants, I may ask for it more frequently. Equally, if I have really good tenants, I may not ask for one at all. $100 is kind of low for an approval on repairs. You will be approving everything.

We have a disadvantage by not being local. Like you, I am out of state. I have been at this game a long time now, and frankly I just accept there will be what I call some "leakage." Leakage just means to me that I am not there and because of that, I have to accept things may not always get done the way I want or expect, or at the right cost. If the toilet leaks, how do I really know it does not need a new float and the entire thing needs replacing? I don't. I just accept this now. I don't mean to scare you off, but as an out of area landlord, we have to accept some of this. The key is to get the right property manager and let them know your expectations. Some want inspection fees but it is worth it so you know what is going on with your properties.