All Forum Posts by: Charles Plimpton

Wow that's awesome. I'm looking to do this in OC, LA, or even Riverside county.

Michael--good stuff man. You're way ahead of me. I'm in the very early stages of this and have had my hands full with my primary business over the past few weeks.

So it sounds like you were able to accomplish exactly what I'm looking to do: buy a property with the rough attributes of an ALF and allow the tenant to make the alterations. 

How did you go about finding the tenant? My plan was just to call all of the smaller operators in a given area and see if they're doing new deals and build relationships from there.

Yes, as is the case with anything.

Yes, I'm definitely planning to secure the tenant first, much in the same way that a retail developer would secure Chick-fil-A/Starbucks for a site before building for them--hence my analogy.

Thanks for your response.

Hello all,

I'm looking to buy SFR's in Southern California and lease them to assisted living operators. I just want to be a landlord--don't want to be a caregiver.

Do these sorts of deals actually happen in practice? Are RAL operators willing to lease or do they generally want to buy?

And if these deals do happen, are operators requiring landlords to deliver a property that is essentially ready to go for the use, or would they make alterations on their own? My ideal scenario is NNN leasing a property to a RAL operator and letting them do the alterations in exchange for reduced rent and/or a small tenant improvement allowance. I'm in shopping center leasing so I see it in similar terms: landlord leases an empty box to a restaurant/retailer and the tenant does their tenant-specific improvements.

I plan to look for properties that have the "bones" of what RAL operators are looking for (single-level, 4 or 5 bedrooms) and allow them to make the improvements they need. Is this a viable strategy or are operators going to be much more demanding about delivery condition?

Thanks,

Charles

Great, thanks for everyone's input. I'm messaging you, Blake.

Hello all,

I'm interested in buying a property with an FHA loan and still being able to earn income to partially cover the mortgage. I'm in Orange County, CA and my understanding is that it's very difficult to qualify for 3-4 unit properties with an FHA loan given prices in the area.

The way I see it, the best way to achieve the result I'm looking for is to buy a 2-3 br home + ADU, or to buy a duplex with a 2-3 br unit + studio unit. Obviously, I would live in the smaller unit and collect rent on the 2-3 br unit.

How does the FHA look at this in practice? Does living in the ADU as my primary residence satisfy FHA loan requirements and make this possible? Would it be easier to get approved with a duplex (2-3 br + studio) over the ADU scenario?

What if the ADU/studio unit is unpermitted? How does that affect things?

Any other pitfalls (appraisals, etc) I should be aware of?

Thanks in advance for everyone's help.