All Forum Posts by: Cathy Bui

Sure @Ernesto Garcia, what information would be useful to you?

Looking to potentially sell 540 Maple St, West Sacramento CA 95691

Price: Somewhere between 470k - 600k

1st unit: 2 bed, 1 bath

2nd unit: 1 studio

3rd unit: 2 bed, 2 bath

Needs major rehab. Will be vacant by June 1, 2023.

@Sam BaderAt the moment, the property is under personal name. You're the second person who mentioned eligibility based on business vs personal name ownership. Perhaps I should consider switching it from personal to business.

I didn't know about the private loans option. That is interesting to me! I also never thought credit cards should be considered based on financial advice outside of real estate investing so it's interesting to know that some of y'all advice credit cards. I could see how if a renovation is done quickly, it's a good option! I'm looking forward to investigating further and seeing others weigh in.

Hi all,

I have a triplex rental property which I do not live in. I wish to do renovations on it. The lenders I've spoken to do not offer HELOC or home equity loans for triplex rental properties. I've only found cash out refinances but I currently have a good rate on my mortgage and don't wish to leave that. Can anyone offer ideas on how I could gain funds for renovations without putting too much of cash into it? Thank you all!

Hi @Leo R., although I could do the research, I didn't have the time so I wanted to trade money for time. Luckily I was able to find individuals who gave me guidance. I definitely have a lesson learned about the neighborhood class. It's not worth the hassle. I would say the appreciation was still worth it however. The stress and complications were unnecessary and it's something I will note for the future. I didn't want to include too many details on this public forum but many of those things you listed makes sense to document in case I wish to ask for advice in the future. There are many experienced folks on this forum such as yourself and I am grateful for it!

@Dan H., I realize now that an ADU is not worth it in this area for the reasons you shared. I recently brought on a new property manager and hopes it goes well. For now the plan is to renovate, but not excessively and just rent it out at a fair price. I hope to secure the property, make it a decent place to live compared to the surrounding neighborhood, and hold onto it until the right time to potentially sell for 1031.

Thank you Scott and Daniel for the advice. I am grateful for the wisdom!

I have a triplex in West Sacramento. Class D+, C- ish.

2bd 1ba, 2bd 1ba, Studio

1,580 sq ft building. 10,302 sq ft Lot.

All units empty. Appliances, carpet, and all other traits are old. 

I would like to find out how to maximize this investment. Add an ADU? Rent it all out with minimal repairs? Renovate then rent out? Do section 8 for all 3 units? Cash out refinance and buy another property vs keep low interest mortgage?

I am willing to pay for consultation if you have experience with transforming rental units.

@Krunal Patel After maintenance, capex, property management, between $200 - $400 per month is left over with the current rent. Not a great flow at the moment. Hoping to improve it.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $398,000
Cash invested: $100,000

It's been an adventure to close on this triplex in West Sacramento, CA! Now begins the journey of managing this investment...

High level timeline
July 20 Became interested in buying a home.
Nov 29 Decided to buy rental property
Dec 7 Started touring properties
Dec 28 In contract with triplex
Jan 24 Closed

What made you interested in investing in this type of deal?

Near where I live.
Good ratio between rent and price of house.
Had existing long time tenants who paid so there wasn't a need to search for tenants.

How did you find this deal and how did you negotiate it?

Scoured redfin, drove by, told real estate agent, found out sellers were somewhat desperate, asked for 10k below asking and got in contract.

How did you finance this deal?

Went with a credit union that had 3.625% for rental property with 1.75% points. 25% down.

What was the outcome?

The inspections revealed that many repairs were needed. Got 10k in seller's credit for repairs.

Lessons learned? Challenges?

The triplex has lots of deferred maintenance. There are issues with tenants. I underestimated the amount of property management work this requires. Next time, I would ask for a lower price.
There was a maximum on the seller's credit enforced by the lender we didn't know about until close to closing day. This was stressful.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Lender: Stanford Federal Credit Union. Real estate buyer's agent: Mairin Haley.