All Forum Posts by: David de Luna

Get some counsel on repairs that really matter to get renters in there, find your bottom line price based on the best estimates you can get, ask what you know is going to be needed to address what you have decided must be addressed for you to buy, and fairly so, and his answer will dictate whether you stay or move on to the next opportunity. It's the numbers, numbers, numbers... or you move on.

I was just approved this morning. Agent is rather anal, super-on-top-of-everything. A blessing and sometimes a slight annoyance. ;-) Thank you for your counsel.

My final contingency left is lending. We are past the deadline by a day to do so but seller and seller agent are calm, confident I'm doing the deal. My agent is pressing me to sign off on the contingency, but my approval is conditional and I haven't event seen the conditions yet and appraisal isn't done either, which is one lender condition. I'm leery about signing off and something goes sideways and I lose my earnest money. $10,530 isn't exactly chump change. What would you do?

I'm about to be a new landlord, thanks to all I've learned on this forum. Sounds like I'm about to be a new daddy or something. LOL! What's the custom for allowing, not allowing, charging an extra deposit for, or any special considerations, (or none) for the issue of smoking in your apartments? I'm renting a 1/1 apartment.

I vigorously disagree. Boxed wine in NOT just as good. that is all.

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*This link comes directly from our calculators, based on information input by the member who posted.

I'm in NorCal and real estate is expensive. I keep looking at this deal wondering if there's a better use of $60k. This property first record of purchase on Zillow is 9/1999 selling at $89,500, indicating a 21.82% appreciation rate at the current sale price, including factoring in a 51% drop in value when sold in 2010. My model uses only 10% to be conservative. Not the cash flow I was hoping for. Am I missing something here or is this a deal worth doing? By the way, broker thinks we can get a $10k credit at close for a new roof needed.

How soon after purchase is it appropriate to raise the rent?

Thank you fellas, for your help. Your counsel is invaluable. Truly, I appreciate it. I'm taking your advice and readjusting my numbers based on your counsel. Thanks again.

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*This link comes directly from our calculators, based on information input by the member who posted.

This duplex could be my first investment (besides my own home). Rent on each unit is $1350 but RentCafe and Rent-o-Meter say $1600. Friends rent nearby so that number is confirmed. Property is in great condition, all units renovated; Next to BART mass transit stop (nearly next door). Thus, the vacancy rate for this area is lower than 2%. I have rent increases annually at 7% a year to get to market rate by year 4. No rent control. Repairs/Maint and CapEx are 3% due to recent renovations. Prop tax, insurance, and MI are per loan officer and confirmed by my own research. Gas, electric, water, garbage all paid by tenants who are all month to month. I live down the street so I plan to self-manage. The property is well below market. I'm using property appreciation of 5% which I researched for my region. What do you think? Am I missing anything here?

When calculating a five year total ROI, I'm using 7% of sales price as the selling cost. I'm using 2% average annual appreciation. All you SF Bay Area investors, does this seem par for you? If not, what numbers do you usually use for a five year total ROI? I know my calculation includes total cash flow over the five years (I'm not factoring an appreciation rate for rents over the five year period because it's seeming to be all over the map - too iffy to include for our area), and my total capital invested, from the down pmt + closing costs, to initial rehab costs (not funded from rents). Any counsel on this?