All Forum Posts by: David Sanchez

Welcome Ali M. , BP is a great tool and has a wealth of knowledge and experience here in the forums. I'm in the East Bay Area too, in Clayton. Where abouts are you? Also, if you'd like to join in on some face to face networking, J Martin puts on a monthly networking event in the East Bay. Also, Johnson Hong has a meetup coming up in SF (I believe on the 19th). It's always a good time and nice to meet others with similar and different real estate ideas. Again, welcome to BP! -David

Hey @Crystal Francis ,

Contrary to Justin, I think that California can be a great place to invest depending on what you're looking to do (and especially if you're looking to live in one of the units!). That being said, are you running your numbers as if you'd rent both sides, or just the one since you'll be living in one unit?

Are you looking to buy something that is turn key? If you're willing to get something in run down condition and fix it up, you may have a better chance of getting closer to those magic numbers.

Also, those rules are not mandatory. They can serve as a guide as needed, especially throughout other parts of the country. I won't say it doesn't happen, but there are many folks in California who do not follow the 2% rule, and would be happy with 1%. Same goes for the 50% rule.

Hopefully that helps, if even just a little bit!

Good luck with your search, and let us know if we can help you along the way (this site truly does have a wealth of information and experience from other members).

-David

Thanks for the tag Johnson H. ! Count me in, I'll be there. Was it just me or did I not see the start time? Looking forward to meeting more of you whom I haven't met yet, as well as see those of you whom I have already met. -David Sanchez

Hi Roman Pak , I don't know specifics on your deal or locale. However, I can tell you that selling a 3/1 vs. a 3/2 can be much harder, and in my market (expensive California), the lost bathroom would cost me about $20k on a starter &400-$500k home. Just double check your comps and find some 3/1's to make sure you'll still make enough cash to make it worth your while. Nothing like losing money or barely breaking even on a first deal.... Good luck, keep us all updated! -David

Hey Diego,

I noticed you're from Tracy, and I'm in the Bay Area too. Classic question about the chicken and the egg. However, it depends. Hard to put offers out there without some type of POF, and also hard to get a HML to even chat very much without a deal property in hand or mind. My suggestion is to ask whichever HML you're trying to use what they can offer before you make an offer. Just see what they have to say. It will most likely be a generic pre qual letter just like a conventional lender would issue you. And obviously you should have some type of POF on your side as well as I'm sure the HML isn't putting up 100% of the costs?

Hope that helps!

-David

Your realtor or lawyer should assist with proper documentation. With that said, you shouldn't need a new contract, but most likely an addendum stating the change in price. Be sure to state that the monies paid for legal fees are deducted from the previously agreed to sales price, and if the deal doesn't go through, that the seller must repay you the legal fees within X days of cancelled contract. Something along those lines, but get someone with local knowledge to help you draft it. Good luck! -David

Like Sean Leone said, a good CPA (or attorney) is in order. You're talking about $850,000 + after all... Feel free to get general advice off the forum, but don't make any decisions solely from any online source as we don't have all the details, nor are we lawyers (not most of us anyway - there are a few). Good luck to you, what a wonderful gift to have; however, I'm very sorry for your loss. Best of luck in your investments! -David

Anything that sells, but 3/2 is standard for a "family" home. -David

I have not personally done it; however, most everything I've read says most banks will not do an LLC. Again, what I've read is the few that will are smaller regional banks and/or credit unions. Hope that helps. Hopefully someone will chime in that has actual experience with it. -David

Good responses so far, but I'm curious if you've gotten the HOA's insurance involved, or better yet the owner of the unit above you (the one that leaked). If they caused the issue shouldn't they be paying for your lost rent? Maybe I'm confused on the particulars.