All Forum Posts by: Devon Yates

I just purchased a duplex and I have two detached 2 car garages. The garages themselves in one building. I would like to build a unit on top the garages in the future. Has anyone done this? What is the cost like? I know it would be WAY more expensive than converting one of the garages but I want to keep both garages.

1 Vote

Los Angeles County, California

Hello all,

I closed on a duplex recently with an existing tenant. They are on a month-to-month lease and have been for almost a decade. How do you go about updating the lease with an existing tenant? I plan on increasing the rent at the beginning of the year.

0 Votes

Los Angeles County, California

Thanks for all the replies! I never considered that I may just need a spreadsheet since it's only unit. I will consider all options. Thanks everyone.

0 Votes

Los Angeles County, California

I just closed escrow but haven't moved in yet. I have some repairs I need to get done first but I also want to electrify the entire property. I'm talking induction stoves and heat pump appliances everywhere for AC, water heating, etc. My goal is to have no gas bill whatsoever. Has anyone done this with any of their properties? How much was it? I have have two, 2/1 units. I will be living in one of them.

0 Votes

Los Angeles County, California

Hello all,

I'm about to close on my first house hack in a couple of days. Woohoo! As a first time landlord, what software do you recommend? So far I've looked at PayRent and Apartments.com. What are you all using?

0 Votes

Los Angeles County, California

Quote from @Robert Reynolds:

Hi @Devon Yates,

Those two criteria are definitely doable in Long Beach and San Pedro. One thing people often overlook, is that rents will increase while your house payment will stay the same. If you can break even now by renting out both units or all the rooms, or even negatively cashflow a little bit, you should be cashflowing well by year 3 and 5. Your property will also more than likely appreciate a great deal in that time and you can also then refi or look in to getting a heloc and then purchase your next property.

Absolutely agree. This is difficult if you are trying to do an FHA though (which I am trying to do).

0 Votes

Los Angeles County, California

I am still looking a multifamily unit to house hack here in LA (Long Beach, San Pedro) and was wondering what some of you determine to be a "good" house hack in an appreciation market like this. For me, one criteria I am trying to enforce is that I want to at lease break even (including all expenses) when I move out. Meaning, I want the fully rented property to cover my mortgage, utilities, property management, etc. The second is, the effective mortgage while I am house hacking the property should be less than or equal to rent for an equivalent unit.

0 Votes

Los Angeles County, California

Quote from @Kayla Gatmaitan:

Hi @Devon Yates! As mentioned above, the market is shifting and giving more buyers the opportunities to have their FHA/VA loans get accepted from Sellers. If you are looking at purchasing a duplex using an FHA loan another alternative is buying a SFR with an ADU already built using a Freddie Mac loan with 5% DP. Freddie Mac just came out with an update last week letting homeowners use the income of the ADU as part of their qualifying income.

My clients are in the similar boat where they want to purchase a MF first and live in one unit using an FHA loan. One obstacle we are seeing is having low rents in the other units and not passing the 3-4 unit self-sufficiency rule with FHA.

I would definitively work with your agent and lender to strategies on how to present your offer in the best way possible in the beginning. That is what I do with all my clients and agent partners. Hope this helps!

Really great responses everyone! I'm still going to look for MF but I am going to start looking harder for houses with an ADU and/or ADU potential.

0 Votes

Los Angeles County, California

Great point. I should be looking for properties like this more than I am.

0 Votes

Los Angeles County, California

Quote from @Michael Junior:

What's up buddy!

What I would recommend to my clients in this situation would be:

Include a clause within your offer that states you will cover the cost of any repairs needed to appease the FHA appraiser ( make sure you are ready and able to foot the bill some issues arise )

Typically in this market buyers are having to offer over asking price, which can be an issue for appraisal. To be more competitive, Waive the appraisal contingency or include an appraisal gap ( offer to cover up to a certain amount should the appraisal come in lite )

Waive your inspection contingency - Do your necessary due diligence prior too. Throughout walk through yourself, or bring your inspector/contractor to a showing prior to offering.

Switch to conventional- 5% down, primary loan.

I live in Santa monica, if you need anything lmk I'd be happy to chat. I'm an investor and an agent

The issue is I can only do conventional financing at 15 percent with a duplex. Unfortunately, I really won't get there until the end of the year or longer.

1 Vote

Los Angeles County, California

All Forum Posts by: Devon Yates

Devon Yates has started 7 posts and replied 16 times.

Post: Building on top of garage

Post: Updating lease for existing tenant after purchasing new property

Post: What are you all using to collect rent, manage properties?

Post: Electrifying your property

Post: What are you all using to collect rent, manage properties?

Post: What numbers make a good multifamily house hack in LA?

Post: What numbers make a good multifamily house hack in LA?

Post: FHA, multi family is seeming impossible

Post: FHA, multi family is seeming impossible

Post: FHA, multi family is seeming impossible